Bill Text: FL S1744 | 2021 | Regular Session | Introduced
Bill Title: Black Business Loan Program
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2021-04-30 - Died in Commerce and Tourism [S1744 Detail]
Download: Florida-2021-S1744-Introduced.html
Florida Senate - 2021 SB 1744 By Senator Powell 30-01425A-21 20211744__ 1 A bill to be entitled 2 An act relating to the Black Business Loan Program; 3 amending s. 288.7102, F.S.; revising the types of 4 black business enterprises eligible to receive funds 5 under the program; requiring that the application 6 process and the annual certification process for the 7 program be separate and distinct processes; requiring 8 the Department of Economic Opportunity to consider 9 certain factors when assessing applications; requiring 10 that applications contain certain information; 11 revising eligibility requirements for recipients under 12 the program; reenacting s. 288.7094(2), F.S., relating 13 to black business investment corporations, to 14 incorporate the amendment made to s. 288.7102, F.S., 15 in a reference thereto; providing an effective date. 16 17 Be It Enacted by the Legislature of the State of Florida: 18 19 Section 1. Subsections (1) and (2) and paragraphs (b), (c), 20 and (d) of subsection (4) of section 288.7102, Florida Statutes, 21 are amended to read: 22 288.7102 Black Business Loan Program.— 23 (1) The Black Business Loan Program is established in the 24 department, which shall annually certify eligible recipients and 25 subsequently disburse funds appropriated by the Legislature, 26 through such eligible recipients, to black business enterprises 27that cannot obtain capital through conventional lending28institutions but that could otherwise compete successfully in29the private sector. 30 (2)(a) The department shall establish an application 31 process and an annual certification process for entities seeking 32 funds to participate in providing loans, loan guarantees, or 33 investments in black business enterprises pursuant to the Black 34 Business Loan Program. The application process and the annual 35 certification process must be two separate and distinct 36 processes. When assessing applications, the department shall 37 consider an applicant’s need, ability, and track recordFlorida38Black Business Investment Act. The department shall process all 39 applications and recertifications submitted by June 1 on or 40 before July 31. 41 (b) The loan application must: 42 1. Indicate the maximum possible score an applicant may 43 achieve for each required section of the application; 44 2. Require an applicant to: 45 a. Document his or her past performance under any similar 46 business development program; and 47 b. Indicate whether he or she previously provided loans, 48 loan guarantees, or investments to black business enterprises as 49 an employee of a public agency, as defined in s. 288.9603(14), 50 and, if so, identify the programs for which such services were 51 performed; and 52 3. Indicate that the required cash match funds may not be 53 funds provided by a public agency. 54 (4) To be eligible to receive funds and provide loans, loan 55 guarantees, or investments under this section, a recipient must: 56 (b)For an existing recipient, annuallySubmit to the 57 department a financial audit performed by an independent 58 certified public accountant for the most recently completed 59 fiscal year, which audit does not reveal any material weaknesses 60 or instances of material noncompliance. An existing recipient 61 must annually submit such audit. 62 (c) Demonstrate thatFor a new recipient: 63 1.Demonstrate thatIts board of directors includes 64 citizens of the state experienced in the development of black 65 business enterprises, can provide loans to black business 66 enterprises, and has performed in similar business development 67 programs or has previously acted for a public agency to provide 68 loans, loan guarantees, or investments to black business 69 enterprises. 70 2.Demonstrate thatThe recipient has a business plan that 71 allows the recipient to operate in a manner consistent with this 72 section and the rules of the department. 73 3.Demonstrate thatThe recipient has the technical skills 74 to analyze and evaluate applications by black business 75 enterprises for loans, loan guarantees, or investments. 76 4.Demonstrate thatThe recipient has established viable 77 partnerships with public and private funding sources, economic 78 development agencies, and workforce development and job referral 79 networks. 80 5. After certification and before receiving a distribution, 81Demonstrate thatthe recipient has a match of public or private 82 dollars in hand equal to 20 percent of the amount to be 83 distributed to the recipientcan provide a private match equal84to 20 percent of the amount of funds provided by the department. 85 (d)For an existing or new recipient,Agree to maintain the 86 recipient’s books and records relating to funds received by the 87 department according to generally accepted accounting principles 88 and in accordance with the requirements of s. 215.97(7) and to 89 make those books and records available to the department for 90 inspection upon reasonable notice. 91 Section 2. For the purpose of incorporating the amendment 92 made by this act to section 288.7102, Florida Statutes, in a 93 reference thereto, subsection (2) of section 288.7094, Florida 94 Statutes, is reenacted to read: 95 288.7094 Black business investment corporations.— 96 (2) A black business investment corporation that meets the 97 requirements of s. 288.7102(4) is eligible to participate in the 98 Black Business Loan Program and shall receive priority 99 consideration by the department for participation in the 100 program. 101 Section 3. This act shall take effect July 1, 2021.