House committee substitute makes the following changes to the 1st edition.
Changes the act's long title. Makes organizational and technical changes throughout.
Combines the small business emergency loan program general provisions and appropriations provisions. Additionally, amends the appropriations provisions to now appropriate $75 million in nonrecurring funds from the Coronavirus Relief Fund to the Office of State Budget and Management (OSBM) to provide funds to Golden LEAF (previously, directed OSBM to make $75 million available for Golden LEAF and appropriated the $75 million from the General Fund to OSBM for the 2019-20 fiscal year). Defines Coronavirus Relief Fund (Fund) to mean funds received by the State of North Carolina during the 2019-20 fiscal year from the Coronavirus Relief Fund created by the federal Coronavirus Aid, Relief, and Economic Security Act of 2020. Clarifies that the funds to Golden LEAF are to provide grants to entities for the purpose of making emergency loans (was, to entities capable of making emergency loans) to assist small businesses with business needs during the period of economic hardship occasioned by the COVID-19 epidemic. Makes conforming changes to require OSBM to deposit biannually remitted funds to the Fund, rather than the General Fund. Specifies that deposits into the Fund are receipts that do not constitute an appropriation made by law under Section 7 of Article V of the Constitution.
Amends the definition of net loan funds to mean the total authorized appropriation less administration costs, as previously specified, and the State's loan funds that are not recaptured (previously, referred to the State's proportionate share of loan funds that are not recaptured).
Bill Summaries: H1034 SMALL BUSINESS EMERGENCY LOANS.
Bill H 1034 (2019-2020)Summary date: Apr 29 2020 - View Summary
Bill H 1034 (2019-2020)Summary date: Apr 28 2020 - View 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.