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21LSO-0600
2021
STATE OF WYOMING
21LSO-0600
Numbered
2.0
HOUSE BILL NO. HB0204
Small business relief loan programs.
Sponsored by: Representative(s) Sherwood, Banks, Duncan, Eklund and Western and Senator(s) Furphy and Rothfuss
A BILL
for
AN ACT relating to the emergency expenses of government; authorizing emergency governmental loan programs related to economic development and business relief; providing appropriations; providing a sunset date for created emergency programs; providing rulemaking authority; and providing for an effective date.
Be It Enacted by the Legislature of the State of Wyoming:
Section 1.
(a)
As used in this section:
(i)
"Council" means the Wyoming business council;
(ii)
"Eligible business" means a business that:
(A)
Is independently owned and operated;
(B)
Is headquartered in Wyoming or has its principal operations located in Wyoming; and
(C)
On March 1, 2020, had employed not more than fifty (50) full-time employees.
(iii)
"Principal operations located in Wyoming" means:
(A)
More than fifty percent (50%) of a business's primary work is located in Wyoming and not less than sixty percent (60%) of the business's employees are employed in Wyoming; or
(B)
Not less than sixty percent (60%) of the business's payroll is paid to individuals residing in Wyoming.
(iv)
"Wyoming bank" means a bank with a physical branch in Wyoming.
(b)
The coronavirus small business loan refinance program is hereby created. The Wyoming business council shall establish and administer this temporary program for the purpose of providing refinance loans to eligible businesses adversely impacted by the COVID-19 pandemic. Refinance loans shall be awarded under this section in accordance with the following:
(i)
Any eligible business may apply to the council for a refinance loan under this section. The application shall require the applicant to certify that it is an eligible business as defined by this section. The application shall also provide that knowingly making a false statement to the council on the application is
prohibited and may result in the applicant being required to immediately repay all funds awarded under this section;
(ii)
The council may contract with financial institutions and other businesses to carry out the program, including by distributing refinance loans and collecting payments, under this section;
(iii)
Refinance loans awarded under this section shall be used by the eligible business to meet existing loan obligations with Wyoming banks that the business has difficulty meeting due to impacts of the COVID-19 pandemic;
(iv)
Before making a refinance loan award under this section, the eligible business shall demonstrate to the council's satisfaction that it
has difficulty meeting existing loan obligations due to impacts caused by the COVID-19 pandemic;
(v)
Refinance loans awarded under this section shall not exceed fifty thousand dollars ($50,000.00) for
each eligible business nor have a term longer than twenty (20) years;
(vi)
No refinance loan shall be awarded after December 31, 2021;
(vii)
Each refinance loan shall have an interest rate between one and one-half percent (1.5%) and two percent (2%) per annum, as set by the council;
(viii)
The amount of a refinance loan provided to an eligible business shall not exceed the value of the real property owned by the eligible business. The council may require the eligible business to have an independent appraisal conducted of the business's real property, at the business's expense, to ensure compliance with this paragraph, but shall not require an appraisal if the taxable value of the eligible business's real property, as shown in publicly available records, is equal to or greater than the amount of the refinance loan;
(ix)
The council may require the eligible business to secure the loan with appropriate assets;
(x)
Refinance loans shall be made only with funds appropriated from the general fund by this section. No other funds of any kind and from any source shall be loaned under this section;
(xi)
Priority for refinance loans shall be given to eligible businesses in operation prior to March 1, 2020;
(xii)
No applicant shall be required to pay any fee for receiving a refinance loan under this section, except an application filing fee not to exceed one hundred dollars ($100.00);
(xiii)
The council shall require an eligible business to obtain loan insurance to the benefit of the state in the event the eligible business defaults on the refinance loan.
(c)
The council shall promulgate any emergency and regular rules necessary to administer the program authorized by this section.
(d)
The attorney general shall review in writing the legality of the program created by this section and any rules established for the program authorized by this section.
(e)
No expenditure of funds shall be made under this section except in accordance with state and federal laws, regulations and orders.
(f)
The council may conduct and contract for random audits of eligible businesses receiving refinance loans under this section to ensure funds are expended in compliance with state and federal law.
(g)
There is appropriated to the Wyoming business council fifty million dollars ($50,000,000.00) from the general fund for purposes of administering the coronavirus small business loan refinance program created by this
section. This appropriation shall be for the period beginning with the effective date of this act and ending June 30, 2022.
This appropriation shall not be transferred or expended for any other purpose and any unexpended, unobligated funds remaining from this appropriation shall revert as provided by law on June 30, 2022.
(h)
The program created by this section shall terminate on December 31, 2041.
Section 2.
(a)
As used in this section:
(i)
"Council" means the Wyoming business council;
(ii)
"Critically-impacted industry" means, as determined by the council, an economic sector negatively impacted disproportionately by the COVID-19 pandemic compared to other economic sectors;
(iii)
"Eligible business" means a business that:
(A)
Is independently owned and operated;
(B)
Is headquartered in Wyoming or has its principal operations located in Wyoming; and
(C)
On March 1, 2020, had employed not more than fifty (50) full-time employees.
(iv)
"Principal operations located in Wyoming" means:
(A)
More than fifty percent (50%) of a business's primary work is located in Wyoming and not less than sixty percent (60%) of the business's employee are employed in Wyoming; or
(B)
Not less than sixty percent (60%) of the business's payroll is paid to individuals residing in Wyoming.
(v)
"Wyoming bank" means a bank with a physical branch in Wyoming.
(b)
The coronavirus small business loan forgiveness program is hereby created. The Wyoming business council shall establish and administer this temporary program for the purpose of providing funds to eligible businesses adversely impacted by the COVID-19 pandemic to meet existing loan obligations. Payments shall be awarded under this section in accordance with the following:
(i)
Any eligible business may apply to the council for a payment under this section. The application shall require the applicant to certify that it is an eligible business as defined by this section. The application shall also provide that knowingly making a false statement to the council on the application is prohibited and may result in the applicant being required to immediately repay all funds awarded under this section;
(ii)
The council may contract with financial institutions and other businesses to carry out the program, including by distributing payments, under this section;
(iii)
Payments awarded under this section shall be used by the eligible business to meet existing loan obligations with Wyoming banks the business has difficulty meeting due to impacts of the COVID-19 pandemic;
(iv)
Before making a payment under this section, the applicant shall demonstrate to the council's satisfaction the
eligible business has difficulty meeting existing loan obligations due to impacts caused by the COVID-19 pandemic;
(v)
The council shall award not more than three (3) payments of nine thousand dollars ($9,000.00) each to any eligible business, unless the eligible business operates in a critically-impacted industry, in which case the council shall not award more than eight (8) payments of nine thousand dollars ($9,000.00) each to any eligible business in the critically-impacted industry;
(vi)
No payment shall be made to an eligible business to meet existing loans provided under the authority of the United States small business administration in 15 U.S.C. 695 or in section 7(a) of the Small Business Act (15 U.S.C. 636(a));
(vii)
Payments shall be made only with funds appropriated from the general fund by this section. No other funds of any kind and from any source shall be loaned under this section;
(viii) Priority for payments shall be given to eligible business in operation prior to March 1, 2020.
(c)
The council shall promulgate any emergency and regular rules necessary to administer the program authorized by this section.
(d)
The attorney general shall review in writing the legality of the program and any rules established for the program authorized by this section.
(e)
No expenditure of funds shall be made under this section except in accordance with state and federal laws, regulations and orders.
(f)
The council may conduct and contract for random audits of eligible businesses receiving payments under this section to ensure funds are expended in compliance with state and federal law.
(g)
There is appropriated to the Wyoming business council one hundred million dollars ($100,000,000.00) from the general fund for purposes of administering the coronavirus small business loan forgiveness program created by this section. This appropriation shall be for the period beginning with the effective date of this act and ending June 30, 2022.
This appropriation shall not be transferred or expended for any other purpose and any unexpended, unobligated funds remaining from this appropriation shall revert as provided by law on June 30, 2022.
(h)
The program created by this section shall terminate on December 31, 2021.
Section 3
.
This act is effective immediately upon completion of all acts necessary for a bill to become law as provided by Article 4, Section 8 of the Wyoming Constitution.
(END)
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HB0204