Bill Summary for H 1034 (2019-2020)

Summary date: 

Apr 28 2020

Bill Information:

View NCGA Bill Details2019-2020 Session
House Bill 1034 (Public) Filed Tuesday, April 28, 2020
AN ACT TO PROVIDE FUNDS FOR SMALL BUSINESS LOAN ASSISTANCE.
Intro. by Ross, B. Jones, Wray.

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Bill summary

Directs the Office of State Budget and Management (OSBM) to make $75 million available for Golden LEAF to provide grants to entities capable of making emergency loans to assist small businesses during periods of economic hardship occasioned by the COVID-19 epidemic. Details nine requirements and criteria for the loans, including setting a maximum term of the loan to 66 months and a maximum amount of the loan at $50,000 per qualifying business, and barring the award of new loans using State funds appropriated in the act at six months following the date the state of emergency, defined by Executive Order No. 116 issued on March 10, 2020, ends. Additionally, directs Golden LEAF to require lenders to prioritize loans for establishments with 100 or fewer full-time equivalent employees as of the State of Emergency, and that are independently owned by a qualifying business. Sets forth seven defined terms. Defines a qualifying business to mean a business with a physical presence in the State that is able to show economic losses as a result of COVID-19.

Predicates the appropriations upon Golden LEAF matching State funds at $15 of non-State funds for every $75 of State funds appropriated by the act. Allows for matching by prior non-State fund expenditures as specified. Requires Golden LEAF to remit the net loan funds that have been received to OSBM every six months following the end of the state of emergency. Requires OSBM to deposit the funds into the General Fund. 

Appropriates $75 million from the General Fund to OSBM for the 2019-20 fiscal year for the act’s purposes.

Establishes biannual reporting requirements for Golden LEAF to report to specified NCGA committees and division on the program. Terminates the reporting requirement after submission of the report following remittance of the entirety of the net loan fund to OSBM. Details required contents of the reports, including the number of loans awarded and jobs retained, and the amount of loans repaid and defaulted to date.

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