12.43 SMALL BUSINESS LINKED INVESTMENTS PROGRAM
CREATED -- DEFINITIONS.
The treasurer of state shall adopt rules to implement a small
business linked investments program to increase the availability of
lower cost funds to inject needed capital into small businesses owned
and operated in this state by residents of this state, which is the
public policy of the state. The rules shall be in accordance with
the following:
1. As used in this section, "small business" means one of the
following:
a. A new or existing small business that meets all the
requirements of subsection 5.
b. For applications to transfer an existing small business to
a new owner, the small business must also meet the requirements of
subsection 5 when local competition does not exist in the principal
area of business activity of the existing small business, and the
loss of the existing small business would result in a hardship on the
community.
2. Loan applications for a new or existing small business shall
be for the purchase of land, improvements, fixtures, machinery,
inventory, supplies, equipment, information technology, or licenses,
or patent, trademark, or copyright fees and expenses. Loan
applications for the transfer of an existing small business shall be
to assist in the transfer of ownership of a retail, wholesale,
manufacturing, service, or agricultural business that may close in
the absence of sufficient financial assistance.
3. During the lifetime of this loan program, the maximum amount
of assistance that an eligible borrower or business may borrow or
receive through this loan program shall be two hundred thousand
dollars. An eligible borrower or business under this program shall
be limited to one loan from one financial institution.
4. A preference shall be given to those persons who are less able
than other persons to secure funds for a small business without
participation in the small business linked investment program.
5. In order to qualify under this program, all owners of the
business or borrowers must not have a combined net worth exceeding
seven hundred fifty thousand dollars as defined in rules adopted by
the treasurer of state pursuant to chapter 17A and the small business
must meet all of the following criteria:
a. Be a for-profit business.
b. If an application involves an existing business or the
transfer of an existing business to a new owner, the business must
have annual gross sales of two million dollars or less at the time
the application is submitted under section 12.35.
c. Not be operated out of the home of any person, unless the
person is eligible for a deduction on federal income taxes pursuant
to 26 U.S.C. § 280A.
d. Not involve real estate investments, rental of real
estate, leasing of real estate, or real estate speculation.
e. Liquor, beer, and wine sales must not exceed twenty
percent of annual sales for establishments holding a class "C" liquor
license issued pursuant to section 123.30.
f. If an application involves the transfer of an existing
small business, the transfer must be by purchase, lease-purchase, or
contract of sale. The purchase must be for all or a portion of the
business which is essential to its continued viability, including
land where the business is located, fixtures attached to the land,
machinery, inventory, supplies, equipment, information technology, or
licenses, patents, trademarks, copyrights, or other intellectual
property relied upon by the business, and inventory for sale by the
business.
6. Loan proceeds shall not be used to refinance existing debt,
including credit card debt. However, proceeds may be used to
refinance a short-term bridge loan made in anticipation of the
treasurer of state's approval of the linked investment loan package.
7. Eligible lending institutions shall verify the borrower is
eligible to participate under the provisions of this section pursuant
to rules adopted by the treasurer of state pursuant to chapter 17A.
12.43 SMALL BUSINESS LINKED INVESTMENTS PROGRAM
CREATED -- DEFINITIONS.
The treasurer of state shall adopt rules to implement a small
business linked investments program to increase the availability of
lower cost funds to inject needed capital into small businesses owned
and operated in this state by residents of this state, which is the
public policy of the state. The rules shall be in accordance with
the following:
1. As used in this section, "small business" means one of the
following:
a. A new or existing small business that meets all the
requirements of subsection 5.
b. For applications to transfer an existing small business to
a new owner, the small business must also meet the requirements of
subsection 5 when local competition does not exist in the principal
area of business activity of the existing small business, and the
loss of the existing small business would result in a hardship on the
community.
2. Loan applications for a new or existing small business shall
be for the purchase of land, improvements, fixtures, machinery,
inventory, supplies, equipment, information technology, or licenses,
or patent, trademark, or copyright fees and expenses. Loan
applications for the transfer of an existing small business shall be
to assist in the transfer of ownership of a retail, wholesale,
manufacturing, service, or agricultural business that may close in
the absence of sufficient financial assistance.
3. During the lifetime of this loan program, the maximum amount
of assistance that an eligible borrower or business may borrow or
receive through this loan program shall be two hundred thousand
dollars. An eligible borrower or business under this program shall
be limited to one loan from one financial institution.
4. A preference shall be given to those persons who are less able
than other persons to secure funds for a small business without
participation in the small business linked investment program.
5. In order to qualify under this program, all owners of the
business or borrowers must not have a combined net worth exceeding
seven hundred fifty thousand dollars as defined in rules adopted by
the treasurer of state pursuant to chapter 17A and the small business
must meet all of the following criteria:
a. Be a for-profit business.
b. If an application involves an existing business or the
transfer of an existing business to a new owner, the business must
have annual gross sales of two million dollars or less at the time
the application is submitted under section 12.35.
c. Not be operated out of the home of any person, unless the
person is eligible for a deduction on federal income taxes pursuant
to 26 U.S.C. § 280A.
d. Not involve real estate investments, rental of real
estate, leasing of real estate, or real estate speculation.
e. Liquor, beer, and wine sales must not exceed twenty
percent of annual sales for establishments holding a class "C" liquor
license issued pursuant to section 123.30.
f. If an application involves the transfer of an existing
small business, the transfer must be by purchase, lease-purchase, or
contract of sale. The purchase must be for all or a portion of the
business which is essential to its continued viability, including
land where the business is located, fixtures attached to the land,
machinery, inventory, supplies, equipment, information technology, or
licenses, patents, trademarks, copyrights, or other intellectual
property relied upon by the business, and inventory for sale by the
business.
6. Loan proceeds shall not be used to refinance existing debt,
including credit card debt. However, proceeds may be used to
refinance a short-term bridge loan made in anticipation of the
treasurer of state's approval of the linked investment loan package.
7. Eligible lending institutions shall verify the borrower is
eligible to participate under the provisions of this section pursuant
to rules adopted by the treasurer of state pursuant to chapter 17A.
12.43 SMALL BUSINESS LINKED INVESTMENTS PROGRAM
CREATED -- DEFINITIONS.
The treasurer of state shall adopt rules to implement a small
business linked investments program to increase the availability of
lower cost funds to inject needed capital into small businesses owned
and operated in this state by residents of this state, which is the
public policy of the state. The rules shall be in accordance with
the following:
1. As used in this section, "small business" means one of the
following:
a. A new or existing small business that meets all the
requirements of subsection 5.
b. For applications to transfer an existing small business to
a new owner, the small business must also meet the requirements of
subsection 5 when local competition does not exist in the principal
area of business activity of the existing small business, and the
loss of the existing small business would result in a hardship on the
community.
2. Loan applications for a new or existing small business shall
be for the purchase of land, improvements, fixtures, machinery,
inventory, supplies, equipment, information technology, or licenses,
or patent, trademark, or copyright fees and expenses. Loan
applications for the transfer of an existing small business shall be
to assist in the transfer of ownership of a retail, wholesale,
manufacturing, service, or agricultural business that may close in
the absence of sufficient financial assistance.
3. During the lifetime of this loan program, the maximum amount
of assistance that an eligible borrower or business may borrow or
receive through this loan program shall be two hundred thousand
dollars. An eligible borrower or business under this program shall
be limited to one loan from one financial institution.
4. A preference shall be given to those persons who are less able
than other persons to secure funds for a small business without
participation in the small business linked investment program.
5. In order to qualify under this program, all owners of the
business or borrowers must not have a combined net worth exceeding
seven hundred fifty thousand dollars as defined in rules adopted by
the treasurer of state pursuant to chapter 17A and the small business
must meet all of the following criteria:
a. Be a for-profit business.
b. If an application involves an existing business or the
transfer of an existing business to a new owner, the business must
have annual gross sales of two million dollars or less at the time
the application is submitted under section 12.35.
c. Not be operated out of the home of any person, unless the
person is eligible for a deduction on federal income taxes pursuant
to 26 U.S.C. § 280A.
d. Not involve real estate investments, rental of real
estate, leasing of real estate, or real estate speculation.
e. Liquor, beer, and wine sales must not exceed twenty
percent of annual sales for establishments holding a class "C" liquor
license issued pursuant to section 123.30.
f. If an application involves the transfer of an existing
small business, the transfer must be by purchase, lease-purchase, or
contract of sale. The purchase must be for all or a portion of the
business which is essential to its continued viability, including
land where the business is located, fixtures attached to the land,
machinery, inventory, supplies, equipment, information technology, or
licenses, patents, trademarks, copyrights, or other intellectual
property relied upon by the business, and inventory for sale by the
business.
6. Loan proceeds shall not be used to refinance existing debt,
including credit card debt. However, proceeds may be used to
refinance a short-term bridge loan made in anticipation of the
treasurer of state's approval of the linked investment loan package.
7. Eligible lending institutions shall verify the borrower is
eligible to participate under the provisions of this section pursuant
to rules adopted by the treasurer of state pursuant to chapter 17A.
