SPONSOR: Rep. Bush & Sen. Hoffner HOUSE OF REPRESENTATIVES 152nd GENERAL ASSEMBLY HOUSE BILL NO. 465 AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO MICROBUSINESSES.
SPONSOR: Rep. Bush & Sen. Hoffner
SPONSOR: Rep. Bush & Sen. Hoffner
SPONSOR:
Rep. Bush & Sen. Hoffner
HOUSE OF REPRESENTATIVES
152nd GENERAL ASSEMBLY
HOUSE BILL NO. 465
AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO MICROBUSINESSES.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE: Section 1. Amend Chapter 87, Title 29 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows: Subchapter IV. Microbusiness Loan Guarantee Program. 8739A. Establishment of the Microbusiness Loan Program. The intent of this chapter is to provide resources to microbusinesses that could be successful but lack sufficient resources to effectively implement their business plans. 8740A. Definitions. As used in this subchapter: (1) Microbusiness means a business that meets the qualifications of 8741A of this title. (2) Community Development Financial Institution (CDFI) means a financial institution that provides credit and financial services to underserved populations. 8741A. Microbusiness. (a) To qualify as a microbusiness a business must meet all of the following: (1) The business employs or plans to employ up to five full-time employees. (2) The business lacks sufficient resources to effectively implement the business activities or trade without assistance. (3) The business makes or plans to make less than $1,000,000 of annual revenue. 8742A. Microbusiness Loan Fund. The Microbusiness Loan Fund (Fund) is hereby created to assist microbusinesses. The Fund is to be administered through the Delaware Division of Small Business. The Fund may be used for any of the following: (1) To guarantee loans made by CDFIs to qualified recipients under this subchapter. (2) To guarantee loans made by other financial institutions approved by the Delaware Division of Small Business. (3) To support microbusinesses that receive loans through this subchapter through education, training, and mentoring. 8743A. Microbusiness Loan Program. The loan program must do all of the following: (1) Guarantee 90% of the total loan amount. (2) Authorize loans up to $100,000. (3) Allow for repayment terms up to 10 years. (4) Structure scheduled payment terms to coincide with the cash flow predictions of the business plan, including allowing initial loan payments to be deferred for up to 24 months from the date of the loan approval. (5) Set the interest rate on loans at no more than the Federal Funds Rate plus 3%. (6) Be available to businesses that are unable to acquire conventional loans due to lack of capital or other reasons. 8744A. Regulations. The Division of Small Business may promulgate regulations for the implementation of this chapter. Section 2. This Act is effective upon the allocation of funds to the Microbusiness Loan Fund.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend Chapter 87, Title 29 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
Subchapter IV. Microbusiness Loan Guarantee Program.
8739A. Establishment of the Microbusiness Loan Program.
The intent of this chapter is to provide resources to microbusinesses that could be successful but lack sufficient resources to effectively implement their business plans.
8740A. Definitions.
As used in this subchapter:
(1) Microbusiness means a business that meets the qualifications of 8741A of this title.
(2) Community Development Financial Institution (CDFI) means a financial institution that provides credit
and financial services to underserved populations.
8741A. Microbusiness.
(a) To qualify as a microbusiness a business must meet all of the following:
(1) The business employs or plans to employ up to five full-time employees.
(2) The business lacks sufficient resources to effectively implement the business activities or trade without assistance.
(3) The business makes or plans to make less than $1,000,000 of annual revenue.
8742A. Microbusiness Loan Fund.
The Microbusiness Loan Fund (Fund) is hereby created to assist microbusinesses. The Fund is to be administered through the Delaware Division of Small Business. The Fund may be used for any of the following:
(1) To guarantee loans made by CDFIs to qualified recipients under this subchapter.
(2) To guarantee loans made by other financial institutions approved by the Delaware Division of Small Business.
(3) To support microbusinesses that receive loans through this subchapter through education, training, and mentoring.
8743A. Microbusiness Loan Program.
The loan program must do all of the following:
(1) Guarantee 90% of the total loan amount.
(2) Authorize loans up to $100,000.
(3) Allow for repayment terms up to 10 years.
(4) Structure scheduled payment terms to coincide with the cash flow predictions of the business plan, including allowing initial loan payments to be deferred for up to 24 months from the date of the loan approval.
(5) Set the interest rate on loans at no more than the Federal Funds Rate plus 3%.
(6) Be available to businesses that are unable to acquire conventional loans due to lack of capital or other reasons.
8744A. Regulations.
The Division of Small Business may promulgate regulations for the implementation of this chapter.
Section 2. This Act is effective upon the allocation of funds to the Microbusiness Loan Fund.
SYNOPSIS This Act provides resources to microbusinesses that could be successful but lack sufficient resources to effectively implement their business plans.
SYNOPSIS
This Act provides resources to microbusinesses that could be successful but lack sufficient resources to effectively implement their business plans.