HB 1227 Summary

• Creates the Microfinance Loan Program administered by the Department of Economic Opportunity to provide short-term, fixed-rate microloans up to $50,000 combined with business training to entrepreneurs and small businesses in Florida

• Establishes the Microfinance Guarantee Program administered by Enterprise Florida, Inc., to provide loan guarantees (up to 50% of loan amount) for loans between $50,000 and $250,000 to eligible entrepreneurs and small businesses

• Requires the Department to contract with 1-3 entities to administer the Microfinance Loan Program by December 1, 2014, with 3-year contracts; state funds may not exceed 50% of total microloan amount

• Limits borrowers to maximum $75,000 per year and 2 microloans per year (5 in any 3-year period); requires personal guarantees and mandatory business training participation; interest rate capped at prime rate plus 1,000 basis points

• Requires annual reporting by the department and Enterprise Florida, Inc., and mandates evaluation by the Office of Program Policy Analysis and Government Accountability by January 1, 2018