Section 620.1075

Title XL ADDITIONAL EXECUTIVE DEPARTMENTS

Chapter 620

Effective - 23 Dec 1997, see footnote   

  620.1075.  Standards for eligibility of lenders and borrowers — rules promulgation procedure — rules invalid, when. — The department of economic development, with the advice of the oversight committee established pursuant to section 620.1069, may adopt and promulgate rules and regulations for determining eligible lenders and eligible borrowers pursuant to sections 620.1069 to 620.1081.  No rule or portion of a rule promulgated under the authority of sections 620.1069 to 620.1081 shall become effective unless it has been promulgated pursuant to the provisions of chapter 536.  All rulemaking authority delegated prior to June 27, 1997, is of no force and effect and repealed; however, nothing in this section shall be interpreted to repeal or affect the validity of any rule filed or adopted prior to June 27, 1997, if such rule complied with the provisions of chapter 536.  The provisions of this section and chapter 536 are nonseverable and if any of the powers vested with the general assembly pursuant to chapter 536, including the ability to review, to delay the effective date, or to disapprove and annul a rule or portion of a rule, are subsequently held unconstitutional, then the purported grant of rulemaking authority and any rule so proposed and contained in the order of rulemaking shall be invalid and void.  The standards shall include, but are not limited to, the following:

  (1)  All eligible lenders shall be approved by the oversight committee, and each eligible lender shall maintain all records of all loans made pursuant to sections 620.1069 to 620.1081.  Eligible lenders shall be community development corporations, community colleges or other community-based organizations which have experience in the area of business assistance;

  (2)  The total amount of any loan made to any one eligible borrower shall not exceed fifteen thousand dollars;

  (3)  Prior to receiving either an institution-based loan or a group-based loan from an eligible lender, each eligible borrower must confer with a qualified business assistance provider for advice on management techniques and other professional advice which the department of economic development may require to help ensure the likelihood of success for the microenterprise.  A qualified business assistance provider may include the department of economic development, a small business assistance center, or any other similar organization approved by the department.

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(L. 1994 H.B. 1248 & 1048 § 12, A.L. 1997 2d Ex. Sess. S.B. 1)

Effective 12-23-97