PREVAILED Roll Call No. _______
FAILED Ayes _______
WITHDRAWN Noes _______
RULED OUT OF ORDER
HOUSE MOTION ____
I move that House Bill 1485 be amended to read as follows:
Delete the title and insert the following:
A BILL FOR AN ACT to amend the Indiana Code concerning
SOURCE: Page 1, line 1; (11)MO148504.1. -->
Page 1, between the enacting clause and line 1, begin a new
paragraph and insert:
SOURCE: IC 5-28-35; (11)MO148504.1. -->
"SECTION 1. IC 5-28-35 IS ADDED TO THE INDIANA CODE
AS A NEW
CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]:
Chapter 35. No Interest Small Business Loans
Sec. 1. As used in this chapter, "fund" means the state general
Sec. 2. As used in this chapter, "qualified employee" means an
(1) is a full-time employee (as defined in IC 6-3.1-13-4) first
hired by a small business after June 30, 2011;
(2) is a resident of Indiana;
(3) is not more than a five percent (5%) shareholder, partner,
member, or owner of the applicant; and
(4) was unemployed:
(A) on the calendar day immediately preceding the day
that the individual was hired by a small business; and
(B) for a period of at least ninety (90) days immediately
preceding the day that the individual was hired by a small
as determined by the corporation. The term does not include
rehired individuals, individuals employed to fill positions vacated
as the result of a layoff that occurred during the previous two (2)
years, an individual hired to fill a vacant position that was
originally created by the hiring of a qualified employee, or
individuals employed in the same business operation before and
after a change of business ownership.
Sec. 3. As used in this chapter, "small business" means a
business entity that satisfies the following requirements:
(1) On at least fifty percent (50%) of the working days of the
business entity occurring during the preceding calendar year,
the business entity employed not more than one hundred fifty
(2) The majority of the employees of the business entity work
Sec. 4. A small business may apply to the corporation for a loan
from the fund. A small business must use the proceeds of a loan
received under this chapter to pay costs incurred to hire and train
qualified employees. The maximum amount of a loan that may be
made under this chapter is the lesser of the following:
(1) An amount equal to fifteen percent (15%) of the total
amount of compensation paid to the qualified employees hired
by the small business in the state fiscal year preceding the
state fiscal year in which the small business applies for a loan
under this chapter.
(2) Five thousand dollars ($5,000).
Sec. 5. The corporation may make a loan from the fund to a
small business located in Indiana if the corporation makes a
written finding that the loan would accomplish the purposes of this
article by enabling the small business to expand employment
opportunities for Indiana residents. However, the maximum
amount of loans that may be made in a particular state fiscal year
may not exceed one million dollars ($1,000,000).
Sec. 6. With respect to any loan made under section 5 of this
chapter, a loan agreement between the corporation and the small
business must contain the following terms:
(1) A requirement that the loan proceeds be used for the
purposes specified in section 4 of this chapter.
(2) The term of the loan, which must not be later than seven
(7) years after the date of the loan.
(3) The repayment schedule, which is not required to begin
until July 1 of the state fiscal year succeeding the state fiscal
year in which the loan was made by two (2) years.
(4) That the corporation may not charge the small business
interest on the loan.
(5) That repayment of the loan may be accelerated if the
corporation determines that the small business has moved,
closed, or transferred employment positions out of Indiana.
(6) Any other terms and provisions the corporation requires.
Sec. 7. The corporation may waive or modify the acceleration of
the loan under an agreement described in section 6 of this chapter
if the corporation determines that the small business has moved,
closed, or transferred employment positions out of Indiana because
of circumstances beyond the person's control, including:
(1) natural disaster;
(2) unforeseen industry trends;
(3) lack of available labor force; or
(4) loss of a major supplier or market.".
Renumber all SECTIONS consecutively.
(Reference is to HB 1485 as printed February 18, 2011.)
MO148504/DI 92 2011