Bill Text: MI HB6052 | 2009-2010 | 95th Legislature | Introduced
Bill Title: Economic development; other; microenterprise development; create. Amends 1984 PA 270 (MCL 125.2001 - 125.2094) by adding secs. 79c, 79d & 79e. TIE BAR WITH: HB 6051'10
Spectrum: Partisan Bill (Democrat 6-0)
Status: (Introduced - Dead) 2010-05-13 - Referred To Committee On Commerce And Tourism [HB6052 Detail]
Download: Michigan-2009-HB6052-Introduced.html
HOUSE BILL No. 6052
April 20, 2010, Introduced by Reps. McDowell, Switalski, Barnett, Terry Brown, Miller and Valentine and referred to the Committee on Banking and Financial Services.
A bill to amend 1984 PA 270, entitled
"Michigan strategic fund act,"
(MCL 125.2001 to 125.2094) by adding sections 79c, 79d, and 79e.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
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 or community development organizations that include
microenterprise support and delivery services in this state shall
be used only for the following purposes:
(a) Administering a loan or loan guarantee program.
(b) Administering a revolving loan program.
(c) Providing business training and technical assistance to
persons whose household income falls at or below 185% of federal
poverty limits.
(d) Providing business loans to persons whose household income
falls at or below 185% of federal poverty limits.
(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 shall be for a term not to exceed 5 years at 0%
interest and shall be renewable.
(5) Loans or grants from a microenterprise development
organization to a microenterprise business shall not exceed
$25,000.00 per year. However, at least 50% of the loans or grants
made from a microenterprise development organization shall 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, loans, and grants 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, loans, and grants of the microenterprise
development organization with commercial and other nonprofit
financial institutions.
(d) The geographic representation of all regions of this
state, including both urban and rural areas.
(e) The ability of the microenterprise development
organization to provide microenterprise development in areas of
chronic economic distress and low income regions of this state.
(f) A plan and the capacity for providing business training,
technical assistance, and business loans to persons whose earnings
fall at or below 185% of federal poverty limits.
(g) The ability of the microenterprise development
organization to provide financial oversight of loans and grants
under this chapter.
(2) 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.
Sec. 79e. The center shall report to the governor and each
house of the legislature each year on all of the following:
(a) The amount of all loans and grants, individually
identified, to each microenterprise development organization.
(b) The amount and recipient of every loan and grant made by a
microenterprise development organization.
(c) Types and individual units of business training and
technical assistance provided by microenterprise development
organizations.
(d) The percentage of business training, technical assistance,
and loans that were provided to persons whose earnings fall at or
below federal poverty limits.
(e) 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.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No.____ or House Bill No.____ (request no.
00952'09 *) of the 95th Legislature is enacted into law.
