Bill Summary for H 689 (2019-2020)

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Summary date: 

Apr 10 2019

Bill Information:

View NCGA Bill Details2019-2020 Session
House Bill 689 (Public) Filed Wednesday, April 10, 2019
Intro. by Alexander, Meyer, Ross.

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Bill summary

Enacts GS 143B-437.79 to create the Micro-Business Development Loan Fund (Fund) as a restricted reserve in the Department of Commerce (Department) to provide low-interest loans to community development financial institutions to enable lending to qualifying micro-businesses that would otherwise be unavailable. Specifies that funds in the Fund remain available to the Department for the described purpose and do not revert. Defines qualifying micro-business to be a business located and employs no more than five employees in the state and is not a subsidiary or affiliate of any other business. Defines community development financial institution.

Directs the Department to develop guidelines related to the Fund's administration, selection of financial institutions and loan recipients, required criteria a recipient must satisfy prior to any lending, and any terms of agreement between the Department and financial institutions or between financial institutions and loan recipients. Additionally sets forth six terms that must be included in the Department's guidelines which apply to each loan from the Fund, including the prioritization of funds for projects that are reasonably anticipated to result in the creation of new jobs, the retention of existing jobs, or beneficial economic development and to recipients that are minority-owned, women-owned qualifying micro-businesses or other qualifying micro-businesses for which traditional markets are unavailable. Also prohibits a financial institution from charging fees for loans funded in part by the Fund with a principal amount of $5,000 or less. Requires the Department to publish a report on the use of the Fund, as specified, no later than one month after the end of each fiscal year. Requires submission of the report to the specified NCGA division and committee.

Directs the Department to conduct a study to determine the minimum funding level required to successfully implement the Fund and to identify factors to increase the number of community development financial institutions in the state. Requires the Department to submit an annual report to specified NCGA committees and subcommittees by April 1.