Bill Text: MI HB5199 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Economic development; other; center for microenterprise development; create. Amends 1984 PA 270 (MCL 125.2001 - 125.2094) by adding ch. 7A.
Spectrum: Partisan Bill (Democrat 19-0)
Status: (Introduced - Dead) 2019-11-07 - Bill Electronically Reproduced 11/07/2019 [HB5199 Detail]
Download: Michigan-2019-HB5199-Introduced.html
HOUSE BILL NO. 5199
November 06, 2019, Introduced by Reps.
Wittenberg, Hammoud, Ellison, LaGrand, Lasinski, Sowerby, Hood, Shannon,
Clemente, Stone, Tate, Manoogian, Cherry, Sabo, Brixie, Pagan, Haadsma,
Guerra and Bolden and referred to the Committee on Commerce and Tourism.
A bill to amend 1984 PA 270, entitled
"Michigan strategic fund act,"
(MCL 125.2001 to 125.2094) by adding chapter 7A.
the people of the state of michigan enact:
CHAPTER 7A
Sec. 79a. (1) The fund shall operate a center for microenterprise development.
(2) As used in this chapter:
(a) "Center" or "center for microenterprise development" means the center for microenterprise development operated under the fund.
(b) "Michigan microenterprise fund" is an account within the fund to be used as provided in this chapter.
(c) "Microenterprise business" means a new or existing business that is headquartered in this state with 5 or fewer employees and includes startup, home-based, and self-employed individuals.
(d) "Microenterprise development organization" means a community-based, nonprofit organization that is tax-exempt under section 501(c)(3) of the internal revenue code, 26 USC 501, that has a demonstrated capacity or potential capacity and plan for providing business training, technical assistance, or business loans to microenterprise businesses.
Sec. 79b. (1) The center for microenterprise development is created under the fund.
(2) The center for microenterprise development shall be funded by the Michigan microenterprise fund.
(3) The fund shall deposit into the Michigan microenterprise fund all money appropriated or otherwise provided by this state and any other money made available to the fund for the center or to the center from any other source, public or private. The center shall actively seek new federal sources and private sources of funding to fund the center for microenterprise development.
Sec. 79c. (1) Except as provided in section 79b, money in the Michigan microenterprise fund shall be used only to make loans or grants to microenterprise development organizations in this state for microenterprise development.
(2) Loans or grants to microenterprise development organizations in this state shall be used only for the following purposes:
(a) Administering a loan or loan guarantee program for microenterprise businesses.
(b) Administering a revolving loan program for microenterprise businesses.
(c) Providing business training and technical assistance for microenterprise businesses.
(d) Providing business loans for microenterprise businesses.
(3) Grants to a microenterprise development organization for administration, business training, and technical assistance shall not exceed 50% of the operating costs of that microenterprise development organization per year.
(4) Loans made from the fund to a microenterprise development organization must be for a term not to exceed 5 years at 0% interest and must be renewable.
(5) Loans from a microenterprise development organization to a microenterprise business must not exceed $35,000.00 per year. However, at least 50% of the loans made from a microenterprise development organization must not exceed $10,000.00.
Sec. 79d. (1) The center shall make grants and loans described in this section to microenterprise development organizations based on the following criteria as determined by the center:
(a) A plan for providing business development training, technical assistance, and loans to microenterprise businesses.
(b) The scope of the business development training and technical assistance services to be provided to microenterprise businesses.
(c) A plan for coordinating the business development training, technical assistance, and loans of the microenterprise development organization with commercial and other nonprofit financial institutions.
(d) A plan and the capacity for providing business training, technical assistance, and business loans.
(e) The ability of the microenterprise development organization to provide financial oversight of loans and grants under this chapter.
(2) The microenterprise development organization shall give priority to grants and loans to minority-owned microenterprise businesses, woman-owned microenterprise businesses, and other microenterprise businesses owned by individuals that have difficulty accessing traditional credit markets, as determined by the center.
(3) As a condition of receiving a loan or grant under this chapter, the recipient microenterprise development organization shall provide periodic performance reports as determined by the center.
(4) As a condition of receiving a loan or grant under this chapter, the recipient microenterprise development organization shall provide that a person who has been convicted of a felony is not eligible for a loan funded under this chapter if the microenterprise development organization determines that the conviction of that felony will materially impact that person's ability to repay the loan.
(5) The center and fund shall ensure that they have input and assistance from individuals knowledgeable of microenterprise development in awarding grants and loans under this chapter.
Sec. 79e. The center shall report to the governor and each house of the legislature each year on all of the following and make that information available to the public on the Michigan strategic funds website:
(a) The amount of all loans and grants, individually identified, to each microenterprise development organization.
(b) The amount and recipient of every loan made by a microenterprise development organization.
(c) Types and individual units of business training and technical assistance provided by microenterprise development organizations.
(d) An evaluation of the demand and the effectiveness of this program based on developing new, and increasing the capacity of existing, microenterprise businesses in this state; strengthening the capacity of microenterprise development organizations; enhancing the earning capacity and reducing the dependence on public services of individuals and families receiving business training, technical assistance, and loans through the center's grant and loan programs; and funds provided by other public and private entities that were leveraged through the programs described in this chapter.
