Bills › 89th General Assembly
Where it is now
- Done: IntroducedApril 21, 2021
- Done: SubcommitteeApril 21, 2021
- Done: Senate committeeApril 27, 2021
- Skipped: Passes the SenateContinued as SF 613
- Next: House committee
- Next: Passes the House
- Next: To the Governor
- Next: Signed into law
Became SF 613 → Its progress continues under the new number. Go to SF 613 What’s a funnel?
What’s in it
This bill creates a downtown loan guarantee program to be administered by the economic development authority and the Iowa finance authority. The purpose of the program is to encourage downtown businesses and banks to reinvest and reopen following the COVID-19 pandemic. _____ finances a rehabilitation project or acquisition or refinancing costs associated with the project; percent of the project cost is used for construction on the project or renovation; the financed project includes a housing component; the loan is used for the construction or permanent financing of a project; a federally insured financial lending institution issued the loan; the loan does not reimburse the borrower for working capital or operations; and the project meets certain design reviews.
Read the full explanation
The bill requires the loan to be secured by a mortgage against the project property, prohibits the loan guarantee to be transferred, and charges the lender an annual loan guarantee fee as set forth by rule. The bill limits the amount of the loan guarantee as follows: for a loan amount of less than or equal to $500,000, the loan guarantee shall not exceed percent of the loan; for a loan amount greater than $500,000, the economic development authority may provide a maximum loan guarantee of up to $250,000. The economic development authority may guarantee the loan for up to five years, which may be extended by the authority for an additional five years. The authority may also deny a loan guarantee for any unreasonable bank loan fees or interest rate. In the event of a loss due to default, the bill requires the loan guarantee to proportionally pay the guarantee percentage of the loss to the lender.106A(1)(o).
Senate subcommittee
Named April 21, 2021. On April 22, 2021 it recommended passage.
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
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89th General Assembly