Bill Summary – FastDemocracy

0728.01000
     Sixty-eighth
     Legislative Assembly                    HOUSE BILL NO. 1420
     of North Dakota
     Introduced by
       Representatives Schneider, Boschee, Conmy, Dakane, Davis, Finley-DeVille, Hanson,
       McLeod, O'Brien, Schreiber-Beck
       Senators Davison, Hogan
  A BILL for an Act to create and enact a new section to chapter 6-09 of the North Dakota Century
  Code, relating to a small business diversity revolving loan fund; to provide a continuing
  appropriation; to provide an appropriation; and to provide a transfer.
  BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
      SECTION 1. A new section to chapter 6-09 of the North Dakota Century Code is created
  and enacted as follows:
      Small business diversity revolving loan fund - Continuing appropriation.
      1.   There is created in the state treasury the small business diversity revolving loan fund
           from which the Bank of North Dakota shall provide loans to eligible small business
          owners. The fund consists of all moneys transferred to the fund by the legislative
          assembly, interest upon moneys in the fund, and payments of interest and principal on
          loans made from the fund. Moneys in the fund are appropriated to the Bank of North
          Dakota on a continuing basis for loan disbursements and administrative costs under
          this section.
     2.   The Bank shall develop policies to administer the fund in accordance with this section,
          including policies for loan participation with local financial institutions. Loan proceeds
          may be used for working capital, equipment purchases, inventory acquisitions, or other
          business expenses.
     3.   The maximum term of a loan made under this section is ten years. A loan made from
          the fund under this section must be at least ten thousand dollars but not more than
          forty-five thousand dollars. A loan made from the fund under this section must have an
          interest rate that does not exceed one-half of one percent per year.
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     Sixty-eighth
     Legislative Assembly
      4.   To be eligible for a loan under this section, the owner of a small business must be a
           woman, minority, or veteran who is a resident of the state and a United State citizen.
           The owner must certify to the Bank that the small business has all the necessary
           licenses and permits to operate lawfully within the state.
      5.   The Bank shall administer the fund. The Bank shall deposit in the fund all principal and
           interest paid on the outstanding loans. The Bank may use a portion of the interest paid
           as a servicing fee to pay for administrative costs, which may not exceed one-half of
           one percent of the amount of the interest payment. The fund must be audited annually
           pursuant to section 6-09-29, and the cost of the audit must be paid from the fund.
     SECTION 2. APPROPRIATION - TRANSFER - SMALL BUSINESS DIVERSITY
 REVOLVING LOAN FUND. There is appropriated out of any moneys in the general fund in the
 state treasury, not otherwise appropriated, the sum of $1,000,000, which the office of
 management and budget shall transfer to the small business diversity revolving loan fund,
 during the biennium beginning July 1, 2023, and ending June 30, 2025.
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