Establishing a targeted small business grant fund and a targeted small business grant program within the economic development authority, and making appropriations

This bill establishes a targeted small business grant fund (fund) and a targeted small business grant program (program) within the economic development authority (authority). “Targeted small business” (targeted business) is defined in the bill as a small business which is percent or more owned, operated, and actively managed by one or more women, minority individuals, service-disabled veterans, or individuals with a disability. “Small business” is defined as an enterprise located in this state that is operated for profit and is under single management, and that has either fewer than employees or an annual gross income of less than $4 million computed as the average of the business’s three preceding fiscal years. “Minority individual”, “service-disabled veterans”, “disability”, and “single management” are also defined in the bill. The fund is created in the state treasury under the control of the authority and consists of any moneys appropriated to the fund by the general assembly, and any other moneys available to, obtained, or accepted by the authority. The fund must be used to award grants under the program and all moneys specifically appropriated to the fund must be used for purposes of the program. Commencing with the fiscal year beginning July 1, 2022, and for each fiscal year thereafter, there is appropriated from the general fund of the state to the authority $4 million for deposit in the fund. Interest or earnings on moneys in the fund accrue to the authority and moneys in the fund do not revert. All recaptures of awarded grants accrue to the authority and must be used for purposes of the program. The authority cannot use more than percent of the moneys in the fund at the beginning of the fiscal year for administrative costs, marketing, and other program support. The authority must establish and administer the program for purposes of awarding grants to eligible targeted businesses. The authority must begin to award grants to eligible targeted businesses not later than January 31, 2023. A grant awarded to any one eligible targeted business cannot exceed $75,000 and a business can only receive one grant under the program. To be eligible for a grant a targeted business must receive assistance in the business’s development or expansion stage from a small business development center. An applicant must also submit an application to the authority pursuant to rules adopted by the authority. The bill establishes a program board that consists of seven members appointed by the director, including one representative of the authority. The bill details the eligibility criteria for members of the board. Each board member serves a two-year term and may be reappointed to one additional two-year term. Each application submitted to the authority must be reviewed by the board and the board must determine whether to approve or deny an application. If an application is approved, the board must determine the grant amount to award to the applicant. The bill specifies the individuals and businesses that are ineligible for grants under the program. A targeted business that is awarded a grant under the program may apply for financial assistance under other programs administered by the authority. The authority must, by January of each year, submit a report on the program to the general assembly. The report must contain the information specified in the bill. The authority must adopt rules as necessary to administer the program.