Amends TCA Title 4; Title 7; Title 9; Title 10; Title 13; Title 45 and Title 67.

This bill creates a micro-business revolving loan fund program to provide low interest loans to community development financial institutions, or other local community-based lending organizations listed in the full text of this bill, in order to provide funding for those lending organizations' loans to micro-businesses located within this state that generate economic growth and job creation within this state but that are unable to obtain adequate credit or adequate terms for credit. This bill defines "micro-business" to mean a business that is based in this state, independently owned and operated, and employs five or fewer individuals. The program will be administered by the department of economic and community development.<br /> <br /> The full text of this bill specifies the criteria and procedure that the department must utilize to identify eligible lending organizations for the program. This bill requires the department to direct program loans to minority-owned, women-owned, and other micro-businesses that have difficulty accessing traditional credit markets. Program loans to micro-businesses must be used for the creation and retention of jobs, as defined by the department in rule. <br /> <br /> This bill requires the department to create two categories of loans, as follows:<br /> <br /> (1) A micro loan with a principal amount of less than $25,000; and<br /> <br /> (2) A loan with a principal amount of $25,000 or more.<br /> <br /> The full text of this bill specifies various requirements for loans made under the program, including, but not limited to:<br /> <br /> (1) A general requirement, which may be changed by rule, that a lender not use more than 25 percent of the principal amount of program funds received from the department to fund a program applicant loan; and<br /> <br /> (2) A requirement that any application, commitment, and loan guarantee fees charged are approved by the department, and that fees must be waived for micro-business loans of less than $5,000.<br /> <br /> This bill requires the department to conduct a study into the factors related to increasing the number of microfinance lenders in this state and publish the report by July 1, 2022.<br /> <br /> This bill authorizes the department to promulgate rules to implement the micro-business revolving loan program.<br />