HB 4247 Summary

• Creates the Agriculture Innovation Finance Authority as a body corporate within the Department of Agriculture and Rural Development to establish and administer loan guarantee programs for agricultural innovation and farming operations in Michigan.

• Establishes three loan programs: an agriculture innovation loan guarantee program (up to $5,000,000 per transaction for value-added processing and commercialization), a beginning and small farmer loan guarantee program (up to $1,000,000 per transaction), and an interest rate assistance program for beginning farmers, small farmers, and new agricultural ventures.

• Authorizes the authority to issue bonds and notes up to $40,000,000 in aggregate principal amount (excluding refunding bonds) to fund loan guarantees, with administrative costs capped at 5% over the program's life.

• Establishes a 9-member board of directors including the agriculture director, state treasurer, and 7 appointed members with agricultural or financial expertise, requiring 5 members for a quorum and 5 concurring votes for board action.

• Guarantees through participating lenders are limited to 90% of lender losses after collection alternatives are exhausted, and loan guarantees cannot be used solely for refinancing prior debt or for entities located in renaissance zones.