MISSISSIPPI LEGISLATURE
2006 Regular Session
To: Ways and Means
By: Representative Buck
AN ACT TO AMEND SECTIONS 57-61-11 AND 57-61-34, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT A PRIVATE COMPANY THAT HAS RECEIVED A LOAN UNDER THE MISSISSIPPI BUSINESS INVESTMENT ACT AND THAT IS A SMALL BUSINESS MAY REQUEST A DEFERRAL OF LOAN PAYMENTS IF A DEFERRAL WILL PLAY A SIGNIFICANT ROLE IN IMPROVING THE FINANCIAL CONDITION OF THE PRIVATE COMPANY AND ASSIST IT TO SUCCEED AND REMAIN A VIABLE OPERATION; TO AUTHORIZE A PRIVATE COMPANY TO REQUEST A DEFERRAL OF PAYMENTS IF A PUBLIC HIGHWAY OR ROAD CONSTRUCTION OR IMPROVEMENT PROJECT HAS HAD A SUBSTANTIALLY ADVERSE EFFECT ON ITS OPERATIONS AND LEVEL OF BUSINESS ACTIVITY; TO DEFINE THE TERM "SMALL BUSINESS"; TO AMEND SECTION 57-93-1, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT AN ENTERPRISE THAT HAS RECEIVED A LOAN UNDER THE MISSISSIPPI EXISTING INDUSTRY PRODUCTIVITY LOAN PROGRAM AND THAT IS A SMALL BUSINESS MAY REQUEST A DEFERRAL OF LOAN PAYMENTS IF A DEFERRAL WILL PLAY A SIGNIFICANT ROLE IN IMPROVING THE FINANCIAL CONDITION OF THE ENTERPRISE AND ASSIST IT TO SUCCEED AND REMAIN A VIABLE OPERATION; TO AUTHORIZE AN ENTERPRISE TO REQUEST A DEFERRAL OF PAYMENTS IF A PUBLIC HIGHWAY OR ROAD CONSTRUCTION OR IMPROVEMENT PROJECT HAS HAD A SUBSTANTIALLY ADVERSE EFFECT ON ITS OPERATIONS AND LEVEL OF BUSINESS ACTIVITY; TO DEFINE THE TERM "SMALL BUSINESS"; TO AMEND SECTION 57-95-1, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT AN ENTERPRISE THAT HAS RECEIVED A LOAN UNDER THE MISSISSIPPI JOB PROTECTION ACT AND THAT IS A SMALL BUSINESS MAY REQUEST A DEFERRAL OF LOAN PAYMENTS IF A DEFERRAL WILL PLAY A SIGNIFICANT ROLE IN IMPROVING THE FINANCIAL CONDITION OF THE ENTERPRISE AND ASSIST IT TO SUCCEED AND REMAIN A VIABLE OPERATION; TO AUTHORIZE AN ENTERPRISE TO REQUEST A DEFERRAL OF PAYMENTS IF A PUBLIC HIGHWAY OR ROAD CONSTRUCTION OR IMPROVEMENT PROJECT HAS HAD A SUBSTANTIALLY ADVERSE EFFECT ON ITS OPERATIONS AND LEVEL OF BUSINESS ACTIVITY; TO DEFINE THE TERM "SMALL BUSINESS"; TO AMEND SECTION 69-2-13, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT AN AGRIBUSINESS THAT HAS RECEIVED A LOAN FROM THE EMERGING CROPS FUND AND THAT IS A SMALL BUSINESS MAY REQUEST A DEFERRAL OF LOAN PAYMENTS IF A DEFERRAL WILL PLAY A SIGNIFICANT ROLE IN IMPROVING THE FINANCIAL CONDITION OF THE ENTERPRISE AND ASSIST IT TO SUCCEED AND REMAIN A VIABLE OPERATION; TO AUTHORIZE AN AGRIBUSINESS TO REQUEST A DEFERRAL OF PAYMENTS IF A PUBLIC HIGHWAY OR ROAD CONSTRUCTION OR IMPROVEMENT PROJECT HAS HAD A SUBSTANTIALLY ADVERSE EFFECT ON ITS OPERATIONS AND LEVEL OF BUSINESS ACTIVITY; TO DEFINE THE TERM "SMALL BUSINESS"; TO AMEND SECTION 3, CHAPTER 14, LAWS OF FIFTH EXTRAORDINARY SESSION OF 2005, TO PROVIDE THAT A BUSINESS THAT HAS RECEIVED A LOAN UNDER THE MISSISSIPPI DISASTER SMALL BUSINESS BRIDGE LOAN ACT MAY REQUEST A DEFERRAL OF LOAN PAYMENTS IF A DEFERRAL WILL PLAY A SIGNIFICANT ROLE IN IMPROVING THE FINANCIAL CONDITION OF THE BUSINESS AND ASSIST IT TO SUCCEED AND REMAIN A VIABLE OPERATION; TO AUTHORIZE A BUSINESS TO REQUEST A DEFERRAL OF PAYMENTS IF A PUBLIC HIGHWAY OR ROAD CONSTRUCTION OR IMPROVEMENT PROJECT HAS HAD A SUBSTANTIALLY ADVERSE EFFECT ON ITS OPERATIONS AND LEVEL OF BUSINESS ACTIVITY; TO AMEND SECTION 57-10-13, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT AN AGRIBUSINESS THAT HAS RECEIVED A LOAN UNDER THE SMALL BUSINESS ASSISTANCE ACT MAY REQUEST A DEFERRAL OF LOAN PAYMENTS IF A DEFERRAL WILL PLAY A SIGNIFICANT ROLE IN IMPROVING THE FINANCIAL CONDITION OF THE BUSINESS AND ASSIST IT TO SUCCEED AND REMAIN A VIABLE OPERATION; TO AUTHORIZE A BUSINESS TO REQUEST A DEFERRAL OF PAYMENTS IF A PUBLIC HIGHWAY OR ROAD CONSTRUCTION OR IMPROVEMENT PROJECT HAS HAD A SUBSTANTIALLY ADVERSE EFFECT ON ITS OPERATIONS AND LEVEL OF BUSINESS ACTIVITY; TO PROVIDE THAT AN ENTERPRISE THAT HAS BEEN GRANTED A LOAN PAYMENT DEFERRAL UNDER THIS ACT SHALL BE ALLOWED A DEFERRAL OF AD VALOREM FOR A PERIOD CORRESPONDING WITH THE DEFERRAL OF LOAN PAYMENTS; TO AMEND SECTION 27-41-1, MISSISSIPPI CODE OF 1972, IN CONFORMITY THERETO; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 57-61-11, Mississippi Code of 1972, is amended as follows:
57-61-11. The Mississippi Development Authority shall establish such guidelines, rules and regulations for the repayment of funds loaned pursuant to this chapter as may be necessary. These provisions shall include, but not be limited to, the following:
(a) Funds may be loaned for a maximum of ten (10) years or the estimated useful life of the property as established by the United States Department of Treasury, whichever is greater.
(b) The rate of interest charged by the Mississippi Development Authority for improvements not on publicly owned property may be negotiated by the Mississippi Development Authority.
(c) For all improvements funded through this chapter which occur on publicly owned property, repayment of funds loaned may, in the discretion of the Mississippi Development Authority, involve only the principal amount loaned with no interest charged thereon.
(d) An audit by a certified public accountant of all costs of a project hereunder must be submitted to the Mississippi Development Authority not later than ninety (90) days after a project's completion. Such an audit shall certify that all of the funds loaned or granted pursuant to this chapter were disbursed in accordance with the terms of this chapter and shall be paid for by the private company benefited by the project.
(e) Notwithstanding the foregoing, in the case of an application under Section 57-61-9(5)(a), the guidelines shall include, but not be limited to, the following:
(i) Funds may be loaned for a maximum of twenty (20) years, or the estimated useful life of improvements on the land areas of the port, whichever is greater.
(ii) The rate of interest charged by the Mississippi Development Authority for loans for port projects may be negotiated by the Mississippi Development Authority and shall be consistent with Section 57-61-11(b) and (c).
(iii) The total of grants and loans to any one (1) state-owned port made pursuant to an application under Section 57-61-9(5)(a) shall not exceed Twenty Million Dollars ($20,000,000.00).
(iv) Before any loan or grant may be made under Section 57-61-9(5)(a) to a state-owned port bordering the Gulf of Mexico, the applicant shall make adequate assurance to the Mississippi Development Authority that federal participation in the cost of the project or projects has been committed contingent only upon availability of local participation in accordance with federal guidelines.
(v) Notwithstanding any provision of this chapter to the contrary, the Mississippi Development Authority shall utilize not more than Four Million Dollars ($4,000,000.00) out of the proceeds of bonds authorized to be issued in this chapter to be made available as interest-bearing loans to state-owned ports for the purpose of repairing, renovating, maintaining and improving the state-owned port. The Mississippi Development Authority shall establish an amortization schedule for the repayment of any loans made pursuant to this subparagraph. The state-owned port shall not spend any revenues for other purposes unless payments on the loan are being timely made according to the amortization schedule. The match requirements of this section and Section 57-61-9 shall not apply to any loan made pursuant to this subparagraph.
(f) Notwithstanding any provision of this chapter to the contrary, the Mississippi Development Authority shall utilize not more than Three Million Dollars ($3,000,000.00) out of the proceeds of bonds authorized to be issued in this chapter for the purpose of making loans to municipalities operating county-owned ports or municipally owned ports for the purpose of acquiring land, buildings and other improvements and for repairing, renovating, maintaining and improving such ports. The Mississippi Development Authority shall establish an amortization schedule for the repayment of any loans made pursuant to this paragraph (f). A municipality shall not spend any port revenues for other purposes unless payments on the loan are being timely made according to the amortization schedule.
(g) Any private company that has received a loan under this chapter and that is a small business may apply to the Mississippi Development Authority to have the payments on the loan deferred if the deferral will play a significant role in improving the financial condition of the private company and assist the private company to succeed and remain a viable operation. A deferral granted under this paragraph (g) may not exceed four (4) years. A private company desiring assistance under this paragraph (g) must submit an application to the Mississippi Development Authority. The application shall include:
(i) The reason for which the deferral is requested;
(ii) An explanation of how the deferral of loan payments will improve the financial condition of the private company and assist the private company;
(iii) The outstanding balance of the loan for which a deferral is requested;
(iv) Financial statements or tax returns for the two (2) years immediately prior to the application;
(v) A business plan;
(vi) Credit reports on all persons or entities with a twenty percent (20%) or greater interest in the private company; and
(vii) Any other information required by the Mississippi Development Authority.
A private company that receives a deferral of payments under this paragraph (g) must submit on a semiannual basis information to the Mississippi Development Authority for its review to determine whether the deferral of payments is necessary and should continue. For the purposes of this paragraph (g), the term "small business" means any commercial enterprise with less than one hundred (100) full-time employees, less than Two Million Dollars ($2,000,000.00) in net worth or less than Three Hundred Fifty Thousand Dollars ($350,000.00) in net annual profit after taxes.
(h) Any private company that has received a loan under this chapter and that is a small business may apply to the Mississippi Development Authority to have the payments on the loan deferred if a public highway or road construction or improvement project has had a substantially adverse impact on its operations and level of business activity. A deferral granted under this paragraph (h) may not exceed the period of time during which the private company experiences a substantially adverse impact on its business. A private company desiring assistance under this paragraph (h) must submit an application to the Mississippi Development Authority. The application shall include:
(i) The reason for which the deferral is requested;
(ii) A description of the public highway or road project that has had a substantially adverse impact on the private company's business and how the project has adversely affected the applicant's business;
(iii) An explanation of how the deferral of loan payments will assist the private company's business during the period for which the highway or road project is ongoing;
(iv) The outstanding balance of the loan for which the deferral is requested;
(v) Financial statements or tax returns for the two (2) years immediately prior to the application;
(vi) A business plan;
(vii) Credit reports on all persons or entities with a twenty percent (20%) or greater interest in the private company; and
(viii) Any other information required by the Mississippi Development Authority.
A private company that receives a deferral of payments under this paragraph (h) must submit on a semiannual basis information to the Mississippi Development Authority for its review to determine whether the deferral of payments is necessary and should continue.
For the purposes of this paragraph (h), the term "small business" means any commercial enterprise with less than one hundred (100) full-time employees, less than Two Million Dollars ($2,000,000.00) in net worth or less than Three Hundred Fifty Thousand Dollars ($350,000.00) in net annual profit after taxes.
SECTION 2. Section 57-61-34, Mississippi Code of 1972, is amended as follows:
57-61-34. (1) Notwithstanding any provision of this chapter to the contrary, the Mississippi Development Authority shall utilize not more than Sixteen Million Dollars ($16,000,000.00) out of the proceeds of bonds authorized to be issued in this chapter to be made available as interest-bearing loans to municipalities or private companies to aid in the establishment of business incubation centers and the creation of new and expanding research and development and technology-based business and industry. In making loans under this section, the Mississippi Development Authority shall attempt to provide for an equitable distribution of such loans among each of the congressional districts of this state in order to promote economic development across the entire state.
(2) The Mississippi Development Authority shall require that any private company receiving a loan under subsection (1) of this section enter into a binding commitment to meet the following minimum obligations, in return for obtaining a loan derived from the proceeds of any bonds issued under this section after July 1, 2005:
(a) The private company shall create a certain minimum number of jobs over a certain period of time, as determined by the authority, and such jobs must be held by persons eligible for employment in the United States under applicable state and federal law;
(b) The private company shall invest, over a certain period of time, a certain minimum amount of capital within the state, as determined by the authority; and
(c) The private company must meet such other requirements as the Mississippi Development Authority considers proper.
If the private company fails to satisfy any commitment under this subsection, then the company must repay an amount equal to all or a portion of the funds loaned by the state under this subsection, as determined by the Mississippi Development Authority.
(3) In exercising the power given it under this section, the Mississippi Development Authority shall work in conjunction with the University Research Center and may contract with the center to provide space and assistance to business incubation centers as the center is authorized to do pursuant to Section 57-13-13.
(4) (a) Any private company that has received a loan under this section and that is a small business may apply to the Mississippi Development Authority to have the payments on the loan deferred if the deferral will play a significant role in improving the financial condition of the private company and assist the private company to succeed and remain a viable operation. A deferral granted under this subsection may not exceed four (4) years. A private company desiring assistance under this subsection must submit an application to the Mississippi Development Authority. The application shall include:
(i) The reason for which the deferral is requested;
(ii) An explanation of how the deferral of loan payments will improve the financial condition of the private company and assist the private company;
(iii) The outstanding balance of the loan for which a deferral is requested;
(iv) Financial statements or tax returns for the two (2) years immediately prior to the application;
(v) A business plan;
(vi) Credit reports on all persons or entities with a twenty percent (20%) or greater interest in the private company; and
(vii) Any other information required by the Mississippi Development Authority.
A private company that receives a deferral of payments under this subsection must submit on a semiannual basis information to the Mississippi Development Authority for its review to determine whether the deferral of payments is necessary and should continue.
(b) For the purposes of this subsection, the term "small business" means any commercial enterprise with less than one hundred (100) full-time employees, less than Two Million Dollars ($2,000,000.00) in net worth or less than Three Hundred Fifty Thousand Dollars ($350,000.00) in net annual profit after taxes.
(5) (a) Any private company that has received a loan under this section and that is a small business may apply to the Mississippi Development Authority to have the payments on the loan deferred if a public highway or road construction or improvement project has had a substantially adverse impact on its operations and level of business activity. A deferral granted under this subsection may not exceed the period of time during which the private company experiences a substantially adverse impact on its business. A private company desiring assistance under this subsection must submit an application to the Mississippi Development Authority. The application shall include:
(i) The reason for which the deferral is requested;
(ii) A description of the public highway or road project that has had a substantially adverse impact on the private company's business and how the project has adversely affected the applicant's business;
(iii) An explanation of how the deferral of loan payments will assist the private company's business during the period for which the highway or road project is ongoing;
(iv) The outstanding balance of the loan for which the deferral is requested;
(v) Financial statements or tax returns for the two (2) years immediately prior to the application;
(vi) A business plan;
(vii) Credit reports on all persons or entities with a twenty percent (20%) or greater interest in the private company; and
(viii) Any other information required by the Mississippi Development Authority.
A private company that receives a deferral of payments under this subsection must submit on a semiannual basis information to the Mississippi Development Authority for its review to determine whether the deferral of payments is necessary and should continue.
(b) For the purposes of this subsection, the term "small business" means any commercial enterprise with less than one hundred (100) full-time employees, less than Two Million Dollars ($2,000,000.00) in net worth or less than Three Hundred Fifty Thousand Dollars ($350,000.00) in net annual profit after taxes.
(6) The requirements of Section 57-61-9 shall not apply to any loan made under this section. The Mississippi Development Authority shall establish criteria and guidelines to govern loans made pursuant to this section.
SECTION 3. Section 57-93-1, Mississippi Code of 1972, is amended as follows:
57-93-1. (1) As used in this section:
(a) "Existing industry" means a manufacturing enterprise that has been operating in this state for not less than two (2) consecutive years that meets minimum criteria established by the Mississippi Development Authority.
(b) "Long-term fixed assets" means assets that:
(i) Through new technology will improve an enterprise's productivity and competitiveness; and
(ii) Meet criteria established by the Mississippi Development Authority.
(c) "MDA" means the Mississippi Development Authority.
(2) (a) There is established the Mississippi Existing Industry Productivity Loan Program to be administered by the MDA for the purpose of providing loans to existing industries to deploy long-term fixed assets that through new technology will improve productivity and competitiveness. An existing industry that accepts a loan under this program shall not reduce employment by more than twenty percent (20%) through the use of the long-term fixed assets for which the loan is granted.
(b) An enterprise desiring a loan under this section must submit an application to the MDA. The application shall include:
(i) A description of the purpose for which the loan is requested;
(ii) The amount of the loan requested;
(iii) The estimated total cost of the project;
(iv) A two-year business plan for the project;
(v) Financial statements or tax returns for the two (2) years immediately prior to the application;
(vi) Credit reports on all persons or entities with a twenty percent (20%) or greater interest in the enterprise; and
(vii) Any other information required by the MDA.
(c) The MDA shall require that binding commitments be entered into requiring that:
(i) The minimum requirements of this section and such other requirements as the MDA considers proper shall be met; and
(ii) If such requirements are not met, all or a portion of the funds provided by this section as determined by the MDA shall be repaid.
(d) The amount of a loan under this section shall not exceed fifty percent (50%) of the total cost of the project or Five Hundred Thousand Dollars ($500,000.00), whichever is less.
(e) The rate of interest on loans under this section shall be at the true interest cost on the most recent issue of twenty-year state general obligation bonds occurring prior to the date the loan is made.
(f) Any enterprise that has received a loan under this section and that is a small business may apply to the MDA to have the payments on the loan deferred if the deferral will play a significant role in improving the financial condition of the enterprise and assist the enterprise to succeed and remain a viable operation. A deferral granted under this paragraph (f) may not exceed four (4) years. An enterprise desiring assistance under this paragraph (f) must submit an application to the MDA. The application shall include:
(i) The reason for which the deferral is requested;
(ii) An explanation of how the deferral of loan payments will improve the financial condition of the enterprise and assist the enterprise;
(iii) The outstanding balance of the loan for which a deferral is requested;
(iv) Financial statements or tax returns for the two (2) years immediately prior to the application;
(v) A business plan;
(vi) Credit reports on all persons or entities with a twenty percent (20%) or greater interest in the enterprise; and
(vii) Any other information required by the MDA.
An enterprise that receives a deferral of payments under this paragraph (f) must submit on a semiannual basis information to the MDA for its review to determine whether the deferral of payments is necessary and should continue.
For the purposes of this paragraph (f), the term "small business" means any commercial enterprise with less than one hundred (100) full-time employees, less than Two Million Dollars ($2,000,000.00) in net worth or less than Three Hundred Fifty Thousand Dollars ($350,000.00) in net annual profit after taxes.
(g) Any enterprise that has received a loan under this section and that is a small business may apply to the Mississippi Development Authority to have the payments on the loan deferred if a public highway or road construction or improvement project has had a substantially adverse impact on its operations and level of business activity. A deferral granted under this paragraph (g) may not exceed the period of time during which the enterprise experiences a substantially adverse impact to its business. A enterprise desiring assistance under this paragraph (g) must submit an application to the Mississippi Development Authority. The application shall include:
(i) The reason for which the deferral is requested;
(ii) A description of the public highway or road project that has had a substantially adverse impact on the enterprise's business and how the project has adversely affected the applicant's business;
(iii) An explanation of how the deferral of loan payments will assist the enterprise's business during the period for which the highway or road project is ongoing;
(iv) The outstanding balance of the loan for which the deferral is requested;
(v) Financial statements or tax returns for the two (2) years immediately prior to the application;
(vi) A business plan;
(vii) Credit reports on all persons or entities with a twenty percent (20%) or greater interest in the enterprise; and
(viii) Any other information required by the Mississippi Development Authority.
An enterprise that receives a deferral of payments under this paragraph (g) must submit on a semiannual basis information to the Mississippi Development Authority for its review to determine whether the deferral of payments is necessary and should continue.
For the purposes of this paragraph (g), the term "small business" means any commercial enterprise with less than one hundred (100) full-time employees, less than Two Million Dollars ($2,000,000.00) in net worth or less than Three Hundred Fifty Thousand Dollars ($350,000.00) in net annual profit after taxes.
(h) The MDA shall have all powers necessary to implement and administer the program established under this section, and the MDA shall promulgate rules and regulations, in accordance with the Mississippi Administrative Procedures Law, necessary for the implementation of this section. However, in making loans under this section, the MDA shall attempt to provide for an equitable distribution of such loans among each of the congressional districts of this state in order to promote economic development across the entire state.
(3) (a) There is created in the State Treasury a special fund to be designated as the "Mississippi Existing Industry Productivity Loan Fund," which shall consist of funds appropriated or otherwise made available by the Legislature in any manner and funds from any other source designated for deposit into such fund. Unexpended amounts remaining in the fund at the end of a fiscal year shall not lapse into the State General Fund, and any investment earnings or interest earned on amounts in the fund shall be deposited to the credit of the fund. Monies in the fund shall be used by the MDA for the purposes described in this section.
(b) Monies in the fund which are derived from the proceeds of general obligation bonds may be used to reimburse reasonable actual and necessary costs incurred by the MDA in providing loans under this section through the use of general obligation bonds. An accounting of actual costs incurred for which reimbursement is sought shall be maintained for each loan by the MDA. Reimbursement of reasonable actual and necessary costs shall not exceed three percent (3%) of the proceeds of bonds issued under Sections 2 through 17 of Chapter 1, Laws of 2005 Third Extraordinary Session. Monies authorized for a particular loan may not be used to reimburse administrative costs for unrelated loans. Reimbursements made under this subsection shall satisfy any applicable federal tax law requirements.
SECTION 4. Section 57-95-1, Mississippi Code of 1972, is amended as follows:
57-95-1. (1) As used in this section:
(a) "At-risk industry" means any enterprise that has been operating in this state for not less than three (3) consecutive years that has lost jobs or is at-risk to lose jobs because such jobs have been outsourced.
(b) "MDA" means the Mississippi Development Authority.
(c) "Outsource" means to send out work or jobs of a certain provider or manufacturer of the State of Mississippi to an overseas provider or manufacturer or a provider or manufacturer located outside the boundaries of the United States or any territory of the United States.
(2) (a) There is established the Mississippi Job Protection Act to be administered by the MDA for the purpose of providing grants and loans to at-risk industries to be used for job retention and to improve productivity and competitiveness. An at-risk industry that accepts a grant or loan under this program shall not reduce employment by more than twenty percent (20%).
(b) An enterprise desiring a grant or loan under this section must submit an application to the MDA. The application shall include:
(i) A description of the purpose for which the grant or loan is requested;
(ii) The amount of the grant or loan requested;
(iii) The estimated total cost of the project;
(iv) A two-year business plan for the project;
(v) Financial statements or tax returns for the two (2) years immediately prior to the application;
(vi) Credit reports on all persons or entities with a twenty percent (20%) or greater interest in the enterprise; and
(vii) Any other information required by the MDA.
(c) The MDA shall require that binding commitments be entered into requiring that:
(i) The minimum requirements of this section and such other requirements as the MDA considers proper shall be met; and
(ii) If such requirements are not met, all or a portion of the funds provided by this section as determined by the MDA shall be repaid.
(d) The amount of a grant or loan under this section shall not exceed fifty percent (50%) of the total cost of the project.
(e) Any enterprise that has received a loan under this section and that is a small business may apply to the MDA to have the payments on the loan deferred if the deferral will play a significant role in improving the financial condition of the enterprise and assist the enterprise to succeed and remain a viable operation. A deferral granted under this paragraph (e) may not exceed four (4) years. An enterprise desiring assistance under this paragraph (e) must submit an application to the MDA. The application shall include:
(i) The reason for which the deferral is requested;
(ii) An explanation of how the deferral of loan payments will improve the financial condition of the enterprise and assist the enterprise;
(iii) The outstanding balance of the loan for which a deferral is requested;
(iv) Financial statements or tax returns for the two (2) years immediately prior to the application;
(v) A business plan;
(vi) Credit reports on all persons or entities with a twenty percent (20%) or greater interest in the enterprise; and
(vii) Any other information required by the MDA.
An enterprise that receives a deferral of payments under this paragraph (e) must submit on a semiannual basis information to the MDA for its review to determine whether the deferral of payments is necessary and should continue.
For the purposes of this paragraph (e), the term "small business" means any commercial enterprise with less than one hundred (100) full-time employees, less than Two Million Dollars ($2,000,000.00) in net worth or less than Three Hundred Fifty Thousand Dollars ($350,000.00) in net annual profit after taxes.
(f) Any enterprise that has received a loan under this chapter and that is a small business may apply to the MDA to have the payments on the loan deferred if a public highway or road construction or improvement project has had a substantially adverse impact on its operations and level of business activity. A deferral granted under this paragraph (e) may not exceed the period of time during which the enterprise experiences a substantially adverse impact on its business. An enterprise desiring assistance under this paragraph (h) must submit an application to the MDA. The application shall include:
(i) The reason for which the deferral is requested;
(ii) A description of the public highway or road project that has had a substantially adverse impact on the enterprise's business and how the project has adversely affected the applicant's business;
(iii) An explanation of how the deferral of loan payments will assist the enterprise's business during the period for which the highway or road project is ongoing;
(iv) The outstanding balance of the loan for which the deferral is requested;
(v) Financial statements or tax returns for the two (2) years immediately prior to the application;
(vi) A business plan;
(vii) Credit reports on all persons or entities with a twenty percent (20%) or greater interest in the enterprise; and
(viii) Any other information required by the MDA.
An enterprise that receives a deferral of payments under this paragraph (f) must submit on a semiannual basis information to the MDA for its review to determine whether the deferral of payments is necessary and should continue.
For the purposes of this paragraph (f), the term "small business" means any commercial enterprise with less than one hundred (100) full-time employees, less than Two Million Dollars ($2,000,000.00) in net worth or less than Three Hundred Fifty Thousand Dollars ($350,000.00) in net annual profit after taxes.
(g) The MDA shall have all powers necessary to implement and administer the program established under this section, and the MDA shall promulgate rules and regulations, in accordance with the Mississippi Administrative Procedures Law, necessary for the implementation of this section.
(3) Grants to at-risk industries under this section shall not exceed Two Hundred Thousand Dollars ($200,000.00).
(4) (a) There is created in the State Treasury a special fund to be designated as the "Mississippi Job Protection Act Fund," which shall consist of funds appropriated or otherwise made available by the Legislature in any manner and funds from any other source designated for deposit into such fund. Unexpended amounts remaining in the fund at the end of a fiscal year shall not lapse into the State General Fund, and any investment earnings or interest earned on amounts in the fund shall be deposited to the credit of the fund. Monies in the fund shall be used by the MDA for the purposes described in this section.
(b) Monies in the fund which are derived from the proceeds of general obligation bonds may be used to reimburse reasonable actual and necessary costs incurred by the MDA in providing grants or loans under this section through the use of general obligation bonds. An accounting of actual costs incurred for which reimbursement is sought shall be maintained for each grant or loan by the MDA. Reimbursement of reasonable actual and necessary costs shall not exceed three percent (3%) of the proceeds of bonds issued under Sections 40 through 55 of Chapter 1, Laws of Third Extraordinary Session of 2005. Monies authorized for a particular grant or loan may not be used to reimburse administrative costs for unrelated grants or loans. Reimbursements made under this subsection shall satisfy any applicable federal tax law requirements.
SECTION 5. Section 69-2-13, Mississippi Code of 1972, is amended as follows:
69-2-13. (1) There is hereby established in the State Treasury a fund to be known as the "Emerging Crops Fund," which shall be used to pay the interest on loans made to farmers for nonland capital costs of establishing production of emerging crops on land in Mississippi, and to make loans and grants which are authorized under this section to be made from the fund. The fund shall be administered by the Mississippi Development Authority. A board comprised of the directors of the authority, the Mississippi Cooperative Extension Service, the Mississippi Small Farm Development Center and the Mississippi Agricultural and Forestry Experiment Station, or their designees, shall develop definitions, guidelines and procedures for the implementation of this chapter. Funds for the Emerging Crops Fund shall be provided from the issuance of bonds or notes under Sections 69-2-19 through 69-2-37 and from repayment of interest loans made from the fund.
(2) (a) The Mississippi Development Authority shall develop a program which gives fair consideration to making loans for the processing and manufacturing of goods and services by agribusiness, greenhouse production horticulture, and small business concerns. It is the policy of the State of Mississippi that the Mississippi Development Authority shall give due recognition to and shall aid, counsel, assist and protect, insofar as is possible, the interests of agribusiness, greenhouse production horticulture, and small business concerns. To ensure that the purposes of this subsection are carried out, the Mississippi Development Authority shall loan not more than One Million Dollars ($1,000,000.00) to finance any single agribusiness, greenhouse production horticulture, or small business concern. Loans made pursuant to this subsection shall be made in accordance with the criteria established in Section 57-71-11.
(b) The Mississippi Development Authority may, out of the total amount of bonds authorized to be issued under this chapter, make available funds to any planning and development district in accordance with the criteria established in Section 57-71-11. Planning and development districts which receive monies pursuant to this provision shall use such monies to make loans to private companies for purposes consistent with this subsection.
(c) The Mississippi Development Authority is hereby authorized to engage legal services, financial advisors, appraisers and consultants if needed to review and close loans made hereunder and to establish and assess reasonable fees,
including, but not limited to, liquidation expenses.
(3) (a) The Mississippi Development Authority shall, in addition to the other programs described in this section, provide for a program of loans to be made to agribusiness or greenhouse production horticulture enterprises for the purpose of encouraging thereby the extension of conventional financing and the issuance of letters of credit to such agribusiness or greenhouse production horticulture enterprises by private institutions. Monies to make such loans by the Mississippi Development Authority shall be drawn from the Emerging Crops Fund. The amount of a loan to any single agribusiness or greenhouse production horticulture enterprise under this paragraph (a) shall not exceed twenty percent (20%) of the total cost of the project for which financing is sought or Two Hundred Thousand Dollars ($200,000.00), whichever is less. No interest shall be charged on such loans, and only the amount actually loaned shall be required to be repaid. Repayments shall be deposited into the Emerging Crops Fund.
(b) The Mississippi Development Authority shall, in addition to the other programs described in this section, provide for a program of loans or loan guaranties, or both, to be made to or on behalf of any agribusiness enterprise engaged in beef processing for the purpose of encouraging thereby the extension of conventional financing and the issuance of letters of credit to such agribusiness enterprises by private institutions. Monies to make such loans or loan guaranties, or both, by the Mississippi Development Authority shall be drawn from the Emerging Crops Fund and shall not exceed Thirty-five Million Dollars ($35,000,000.00) in the aggregate. The amount of a loan to any single agribusiness enterprise or loan guaranty on behalf of such agribusiness enterprise, or both, under this paragraph (b) shall not exceed the total cost of the project for which financing is sought or Thirty-five Million Dollars ($35,000,000.00), whichever is less. The interest charged on a loan made under this paragraph (b) shall be at a rate determined by the Mississippi Development Authority. All repayments of any loan made under this paragraph (b) shall be deposited into the Emerging Crops Fund. Assistance received by an agribusiness enterprise under this paragraph (b) shall not disqualify the agribusiness enterprise from obtaining any other assistance under this chapter.
(c) Any enterprise that has received a loan under this subsection and that is a small business may apply to the Mississippi Development Authority to have the payments on the loan deferred if the deferral will play a significant role in improving the financial condition of the enterprise and assist the enterprise to succeed and remain a viable operation. A deferral granted under this paragraph (c) may not exceed four (4) years. An enterprise desiring assistance under this paragraph (c) must submit an application to the Mississippi Development Authority. The application shall include:
(i) The reason for which the deferral is requested;
(ii) An explanation of how the deferral of loan payments will improve the financial condition of the enterprise and assist the enterprise;
(iii) The outstanding balance of the loan for which a deferral is requested;
(iv) Financial statements or tax returns for the two (2) years immediately prior to the application;
(v) A business plan;
(vi) Credit reports on all persons or entities with a twenty percent (20%) or greater interest in the enterprise; and
(vii) Any other information required by the Mississippi Development Authority.
An enterprise that receives a deferral of payments under this paragraph (c) must submit on a semiannual basis information to the Mississippi Development Authority for its review to determine whether the deferral of payments is necessary and should continue.
For the purposes of this paragraph (c), the term "small business" means any commercial enterprise with less than one hundred (100) full-time employees, less than Two Million Dollars ($2,000,000.00) in net worth or less than Three Hundred Fifty Thousand Dollars ($350,000.00) in net annual profit after taxes.
(d) Any enterprise that has received a loan under this subsection and that is a small business may apply to the Mississippi Development Authority to have the payments on the loan deferred if a public highway or road construction or improvement project has had a substantially adverse impact on its operations and level of business activity. A deferral granted under this paragraph (d) section may not exceed the period of time during which the enterprise experiences a substantially adverse impact on its business. An enterprise desiring assistance under this paragraph (d) must submit an application to the Mississippi Development Authority. The application shall include:
(i) The reason for which the deferral is requested;
(ii) A description of the public highway or road project that has had a substantially adverse impact on the enterprise's business and how the project has adversely affected the applicant's business;
(iii) An explanation of how the deferral of loan payments will assist the enterprise's business during the period for which the highway or road project is ongoing;
(iv) The outstanding balance of the loan for which the deferral is requested;
(v) Financial statements or tax returns for the two (2) years immediately prior to the application;
(vi) A business plan;
(vii) Credit reports on all persons or entities with a twenty percent (20%) or greater interest in the enterprise; and
(viii) Any other information required by the Mississippi Development Authority.
An enterprise that receives a deferral of payments under this paragraph (d) must submit on a semiannual basis information to the Mississippi Development Authority for its review to determine whether the deferral of payments is necessary and should continue.
For the purposes of this paragraph (d), the term "small business" means any commercial enterprise with less than one hundred (100) full-time employees, less than Two Million Dollars ($2,000,000.00) in net worth or less than Three Hundred Fifty Thousand Dollars ($350,000.00) in net annual profit after taxes.
(4) (a) Through June 30, 2006, the Mississippi Development Authority may loan or grant to qualified planning and development districts, and to small business investment corporations, bank-based community development corporations, the Recruitment and Training Program, Inc., the City of Jackson Business Development Loan Fund, the Lorman Southwest Mississippi Development Corporation, the West Jackson Community Development Corporation, the East Mississippi Development Corporation, and other entities meeting the criteria established by the Mississippi Development Authority (all referred to hereinafter as "qualified entities"), funds for the purpose of establishing loan revolving funds to assist in providing financing for minority economic development. The monies loaned or granted by the Mississippi Development Authority shall be drawn from the Emerging Crops Fund and shall not exceed Twenty-six Million Dollars ($26,000,000.00) in the aggregate. Planning and development districts or qualified entities which receive monies pursuant to this provision shall use such monies to make loans to minority business enterprises consistent with criteria established by the Mississippi Development Authority. Such criteria shall include, at a minimum, the following:
(i) The business enterprise must be a private, for-profit enterprise.
(ii) If the business enterprise is a proprietorship, the borrower must be a resident citizen of the State of Mississippi; if the business enterprise is a corporation or partnership, at least fifty percent (50%) of the owners must be resident citizens of the State of Mississippi.
(iii) The borrower must have at least five percent (5%) equity interest in the business enterprise.
(iv) The borrower must demonstrate ability to repay the loan.
(v) The borrower must not be in default of any previous loan from the state or federal government.
(vi) Loan proceeds may be used for financing all project costs associated with development or expansion of a new small business, including fixed assets, working capital, start-up costs, rental payments, interest expense during construction and professional fees related to the project.
(vii) Loan proceeds shall not be used to pay off existing debt for loan consolidation purposes; to finance the acquisition, construction, improvement or operation of real property which is to be held primarily for sale or investment; to provide for, or free funds, for speculation in any kind of property; or as a loan to owners, partners or stockholders of the applicant which do not change ownership interest by the applicant. However, this does not apply to ordinary compensation for services rendered in the course of business.
(viii) The maximum amount that may be loaned to any one (1) borrower shall be Two Hundred Fifty Thousand Dollars ($250,000.00).
(ix) The Mississippi Development Authority shall review each loan before it is made, and no loan shall be made to any borrower until the loan has been reviewed and approved by the Mississippi Development Authority.
(b) For the purpose of this subsection, the term "minority business enterprise" means a socially and economically disadvantaged small business concern, organized for profit, performing a commercially useful function which is owned and controlled by one or more minorities or minority business enterprises certified by the Mississippi Development Authority, at least fifty percent (50%) of whom are resident citizens of the State of Mississippi. For purposes of this subsection, the term "socially and economically disadvantaged small business concern" shall have the meaning ascribed to such term under the Small Business Act (15 USCS, Section 637(a)), or women, and the term "owned and controlled" means a business in which one or more minorities or minority business enterprises certified by the Mississippi Development Authority own sixty percent (60%) or, in the case of a corporation, sixty percent (60%) of the voting stock, and control sixty percent (60%) of the management and daily business operations of the business.
From and after July 1, 2006, monies not loaned or granted by the Mississippi Development Authority to planning and development districts or qualified entities under this subsection, and monies not loaned by planning and development districts or qualified entities, shall be deposited to the credit of the sinking fund created and maintained in the State Treasury for the retirement of bonds issued under Section 69-2-19.
(c) Notwithstanding any other provision of this subsection to the contrary, if federal funds are not available for commitments made by a planning and development district to provide assistance under any federal loan program administered by the planning and development district in coordination with the Appalachian Regional Commission or Economic Development Administration, or both, a planning and development district may use funds in its loan revolving fund, which have not been committed otherwise to provide assistance, for the purpose of providing temporary funding for such commitments. If a planning and development district uses uncommitted funds in its loan revolving fund to provide such temporary funding, the district shall use funds repaid to the district under the temporarily funded federal loan program to replenish the funds used to provide the temporary funding. Funds used by a planning and development district to provide temporary funding under this paragraph (c) must be repaid to the district's loan revolving fund no later than twelve (12) months after the date the district provides the temporary funding. A planning and development district may not use uncommitted funds in its loan revolving fund to provide temporary funding under this paragraph (c) on more than two (2) occasions during a calendar year. A planning and development district may provide temporary funding for multiple commitments on each such occasion. The maximum aggregate amount of uncommitted funds in a loan revolving fund that may be used for such purposes during a calendar year shall not exceed seventy percent (70%) of the uncommitted funds in the loan revolving fund on the date the district first provides temporary funding during the calendar year.
(d) If the Mississippi Development Authority determines that a planning and development district or qualified entity has provided loans to minority businesses in a manner inconsistent with the provisions of this subsection, then the amount of such loans so provided shall be withheld by the Mississippi Development Authority from any additional grant funds to which the planning and development district or qualified entity becomes entitled under this subsection. If the Mississippi Development Authority determines, after notifying such planning and development district or qualified entity twice in writing and providing such planning and development district or qualified entity a reasonable opportunity to comply, that a planning and development district or qualified entity has consistently failed to comply with this subsection, the Mississippi Development Authority may declare such planning and development district or qualified entity in default under this subsection and, upon receipt of notice thereof from the Mississippi Development Authority, such planning and development district or qualified entity shall immediately cease providing loans under this subsection, shall refund to the Mississippi Development Authority for distribution to other planning and development districts or qualified entities all funds held in its revolving loan fund and, if required by the Mississippi Development Authority, shall convey to the Mississippi Development Authority all administrative and management control of loans provided by it under this subsection.
(e) If the Mississippi Development Authority determines, after notifying a planning and development district or qualified entity twice in writing and providing copies of such notification to each member of the Legislature in whose district or in a part of whose district such planning and development district or qualified entity is located and providing such planning and development district or qualified entity a reasonable opportunity to take corrective action, that a planning and development district or qualified entity administering a revolving loan fund under the provisions of this subsection is not actively engaged in lending as defined by the rules and regulations of the Mississippi Development Authority, the Mississippi Development Authority may declare such planning and development district or qualified entity in default under this subsection and, upon receipt of notice thereof from the Mississippi Development Authority, such planning and development district or qualified entity shall immediately cease providing loans under this subsection, shall refund to the Mississippi Development Authority for distribution to other planning and development districts or qualified entities all funds held in its revolving loan fund and, if required by the Mississippi Development Authority, shall convey to the Mississippi Development Authority all administrative and management control of loans provided by it under this subsection.
(5) The Mississippi Development Authority shall develop a program which will assist minority business enterprises by guaranteeing bid, performance and payment bonds which such minority businesses are required to obtain in order to contract with federal agencies, state agencies or political subdivisions of the state. Monies for such program shall be drawn from the monies allocated under subsection (4) of this section to assist the financing of minority economic development and shall not exceed Three Million Dollars ($3,000,000.00) in the aggregate. The Mississippi Development Authority may promulgate rules and regulations for the operation of the program established pursuant to this subsection. For the purpose of this subsection (5) the term "minority business enterprise" has the meaning assigned such term in subsection (4) of this section.
(6) The Mississippi Development Authority may loan or grant to public entities and to nonprofit corporations funds to defray the expense of financing (or to match any funds available from other public or private sources for the expense of financing) projects in this state which are devoted to the study, teaching and/or promotion of regional crafts and which are deemed by the authority to be significant tourist attractions. The monies loaned or granted shall be drawn from the Emerging Crops Fund and shall not exceed Two Hundred Fifty Thousand Dollars ($250,000.00) in the aggregate.
(7) Through June 30, 2006, the Mississippi Development Authority shall make available to the Mississippi Department of Agriculture and Commerce funds for the purpose of establishing loan revolving funds and other methods of financing for agribusiness programs administered under the Mississippi Agribusiness Council Act of 1993. The monies made available by the Mississippi Development Authority shall be drawn from the Emerging Crops Fund and shall not exceed One Million Two Hundred Thousand Dollars ($1,200,000.00) in the aggregate. The Mississippi Department of Agriculture and Commerce shall establish control and auditing procedures for use of these funds. These funds will be used primarily for quick payment to farmers for vegetable and fruit crops processed and sold through vegetable processing plants associated with the Department of Agriculture and Commerce and the Mississippi State Extension Service.
(8) From and after July 1, 1996, the Mississippi Development Authority shall make available to the Mississippi Small Farm Development Center One Million Dollars ($1,000,000.00) to be used by the center to assist small entrepreneurs as provided in Section 37-101-25, Mississippi Code of 1972. The monies made available by the Mississippi Development Authority shall be drawn from the Emerging Crops Fund.
(9) The Mississippi Development Authority shall make available to the Agribusiness and Natural Resource Development Center through Alcorn State University an amount not to exceed Two Hundred Fifty Thousand Dollars ($250,000.00) in fiscal year 2001 and Two Hundred Fifty Thousand Dollars ($250,000.00) in fiscal year 2002 from the cash balance of the Emerging Crops Fund to support the development of a cooperative program for agribusiness development, marketing and natural resources development. This subsection (9) shall stand repealed on June 30, 2006.
(10) The Mississippi Development Authority shall make available to the Small Farm Development Center at Alcorn State University funds in an aggregate amount not to exceed Three Hundred Thousand Dollars ($300,000.00), to be drawn from the cash balance of the Emerging Crops Fund. The Small Farm Development Center at Alcorn State University shall use such funds to make loans to producers of sweet potatoes and cooperatives anywhere in the State of Mississippi owned by sweet potato producers to assist in the planting of sweet potatoes and the purchase of sweet potato production and harvesting equipment. A report of the loans made under this subsection shall be furnished by January 15 of each year to the Chairman of the Senate Agriculture Committee and the Chairman of the House Agriculture Committee.
(11) The Mississippi Development Authority shall make available to the Mississippi Department of Agriculture and Commerce "Make Mine Mississippi" program an amount not to exceed One Hundred Fifty Thousand Dollars ($150,000.00) to be drawn from the cash balance of the Emerging Crops Fund.
(12) The Mississippi Development Authority shall make available to the Mississippi Department of Agriculture and Commerce an amount not to exceed One Hundred Fifty Thousand Dollars ($150,000.00) to be drawn from the cash balance of the Emerging Crops Fund to be used for the rehabilitation and maintenance of the Mississippi Farmers Central Market in Jackson, Mississippi.
(13) The Mississippi Development Authority shall make available to the Mississippi Department of Agriculture and Commerce an amount not to exceed Twenty-five Thousand Dollars ($25,000.00) to be drawn from the cash balance of the Emerging Crops Fund to be used for advertising purposes related to the Mississippi Farmers Central Market in Jackson, Mississippi.
(14) (a) The Mississippi Development Authority shall, in addition to the other programs described in this section, provide for a program of loan guaranties to be made on behalf of any nonprofit entity qualified under Section 501(c)(3) of the Internal Revenue Code and certified by the United States Department of the Treasury as a community development financial institution for the purpose of encouraging the extension of financing to such an entity which financing the entity will use to make funds available to other entities for the purpose of making loans available in low-income communities in Mississippi. Monies to make such loan guaranties by the Mississippi Development Authority shall be drawn from the Emerging Crops Fund and shall not exceed Two Million Dollars ($2,000,000.00) in the aggregate. The amount of a loan guaranty on behalf of such an entity under this subsection (14) shall not exceed Two Million Dollars ($2,000,000.00). Assistance received by an entity under this subsection (14) shall not disqualify the entity from obtaining any other assistance under this chapter.
(b) An entity desiring assistance under this subsection (14) must submit an application to the Mississippi Development Authority. The application must include any information required by the Mississippi Development Authority.
(c) The Mississippi Development Authority shall have all powers necessary to implement and administer the program established under this subsection (14), and the Mississippi Development Authority shall promulgate rules and regulations, in accordance with the Mississippi Administrative Procedures Law, necessary for the implementation of this subsection (14).
SECTION 6. Section 3, Chapter 14, Laws of Fifth Extraordinary Session of 2005, is amended as follows:
Section 3. (1) The Mississippi Development Authority (hereinafter referred to as the "authority") is authorized and empowered to utilize any funds acquired pursuant to Section 5 of this act and any funds otherwise provided for the purposes expressed in this act from any source, to establish a disaster loan program with federally insured financial institutions or other approved lending institutions according to rules and regulations of the authority to provide short-term bridge loans to small business owners in this state for the purpose of assisting such small businesses in returning to business as quickly as possible.
(2) The amount of any loan granted under this act shall be not less than One Thousand Dollars ($1,000.00) nor more than Twenty-five Thousand Dollars ($25,000.00). Except as otherwise provided, the term of any loan made under this section shall be ninety (90) days or one hundred eighty (180) days as determined by the authority based upon the circumstances of the business applying for the loan. However, upon request by the issuing financial institution, the authority may extend the term of any loan made under this act up to an additional one hundred eighty (180) days. The proceeds of the loans authorized under this act shall be used only for the purpose of maintaining or restarting the business in the area for which a disaster declaration by the Governor for Hurricane Katrina was issued.
(3) To be eligible for the loans authorized under this act, small businesses shall:
(a) Be located in the area for which a disaster declaration for Hurricane Katrina was issued by the Governor;
(b) Have been established in the area for which the disaster declaration of the Governor for Hurricane Katrina was issued for not less than one (1) year prior to the declaration;
(c) Have employed not less than two (2) nor more than one hundred (100) persons immediately prior to the disaster declaration;
(d) Have suffered physical damage as a direct result of the disaster; and
(e) Be at least fifty-one percent (51%) owned by Mississippi residents, or, in the case of a Mississippi nonprofit corporation, controlled by Mississippi residents.
(4) (a) Any small business that has received a loan under this section may apply to the authority to have the payments on the loan deferred if the deferral will play a significant role in improving the financial condition of the small business and assist the small business to succeed and remain a viable operation. A deferral granted under this subsection may not exceed four (4) years. A small business desiring assistance under this subsection must submit an application to the authority. The application shall include:
(i) The reason for which the deferral is requested;
(ii) An explanation of how the deferral of loan payments will improve the financial condition of the small business and assist the small business;
(iii) The outstanding balance of the loan for which a deferral is requested;
(iv) Financial statements or tax returns for the two (2) years immediately prior to the application;
(v) A business plan;
(vi) Credit reports on all persons or entities with a twenty percent (20%) or greater interest in the private company; and
(vii) Any other information required by the Mississippi Development Authority.
(b) A small business that receives a deferral of payments under this subsection must submit on a semiannual basis information to the authority for its review to determine whether the deferral of payments is necessary and should continue.
(5) (a) Any small business that has received a loan under this section may apply to the authority to have the payments on the loan deferred if a public highway or road construction or improvement project has had a substantially adverse impact on its operations and level of business activity. A deferral granted under this subsection may not exceed the period of time during which the small business experiences a substantially adverse impact on its business. A small business desiring assistance under this subsection must submit an application to the authority. The application shall include:
(i) The reason for which the deferral is requested;
(ii) A description of the public highway or road project that has had a substantially adverse impact on the small business's business and how the project has adversely affected the applicant's business;
(iii) An explanation of how the deferral of loan payments will assist the small business during the period for which the highway or road project is ongoing;
(iv) The outstanding balance of the loan for which the deferral is requested;
(v) Financial statements or tax returns for the two (2) years immediately prior to the application;
(vi) A business plan;
(vii) Credit reports on all persons or entities with a twenty percent (20%) or greater interest in the small business; and
(viii) Any other information required by the authority.
(b) A small business that receives a deferral of payments under this subsection must submit on a semiannual basis information to the authority for its review to determine whether the deferral of payments is necessary and should continue.
(6) Using assessments of the disaster impacted areas, the authority shall designate the area, and the counties in the area, in which a small business must be located to be eligible to participate in the program. The authority shall develop, adopt and publish reasonable rules and regulations for the operation of the loan program established under this act. The rules and regulations shall govern the use of loan proceeds, terms of loans, loan interest rates and fees, the loan approval process and any other matters the authority considers appropriate. For purposes of the program established by this act, the authority shall be exempt from the Mississippi Administrative Procedures Law.
SECTION 7. Section 57-10-513, Mississippi Code of 1972, is amended as follows:
57-10-513. The planning and development districts and qualified entities are authorized, empowered and directed to deposit all grant funds received pursuant to this article in a revolving assistance fund and to provide assistance therefrom to small businesses in accordance with this article and the following criteria, terms and conditions:
(a) To be eligible for assistance under this article, the small business and the project to be assisted must meet the following criteria:
(i) Assistance must be in connection with an identifiable project or business plan, and the principal amount of all assistance may not exceed fifty percent (50%) of the total cost of said project or business plan;
(ii) Assistance may be used in connection with the purchase or lease of land, buildings, equipment and inventory, and for working capital; provided, however, no more than one-third (1/3) of the total assistance to a small business pursuant to this article or Fifty Thousand Dollars ($50,000.00), whichever is less, may be used for working capital;
(iii) Assistance may not be provided for speculative land or real estate investments;
(iv) Assistance may not be provided under the program to finance or satisfy any existing debt;
(v) Assistance may not be provided to a small business unless at least sixty percent (60%) of the small business is owned, directly or indirectly, by individuals who have been residents of the State of Mississippi fortwo (2) years immediately prior to the application for assistance; and
(vi) The project or business plan for which assistance is provided must create or retain full-time jobs, and the planning and development district or qualified entity must receive a certificate to that effect from the small business before any assistance is provided.
(b) The interest rate on loans shall not be less than five percent (5%) per annum or more than four percent (4%) above the federal discount rate, plus the servicing fees established in this article.
(c) As security for any loan under the program, the planning and development district or qualified entity shall take a security interest in assets of the small business and require personal guarantees of all persons and entities owning twenty percent (20%) or more of the small business. Such security interests may be subordinate to other security interests in such assets.
(d) The maximum term of any loan under the program shall not exceed the following: fifteen (15) years if used to purchase or lease land or buildings, ten (10) years if used to purchase or lease equipment, five (5) years if used to provide working capital and three (3) years if used to purchase inventory.
(e) In the event of a default by a small business on a loan under the program, the planning and development district or qualified entity shall foreclose and enforce its security interests and personal guarantees relating to such loan and take all necessary and appropriate action to recover all principal and interest owed, and all amounts so recovered shall be deposited in the revolving assistance fund administered by said planning and development district or qualified entity. Any small business which defaults on a loan under the program shall not be eligible for any other loan under the program.
(f) A planning and development district or qualified entity may acquire, subscribe for, own, hold, sell, assign, transfer, mortgage or pledge an equity investment in a small business incorporated under the laws of the State of Mississippi, provided such equity investment constitutes less than fifty percent (50%) of the voting shares of the small business and does not exceed Fifty Thousand Dollars ($50,000.00), and while the owner or holder thereof, the planning and development district or qualified entity may exercise all the rights, powers and privileges of ownership, including the right to vote thereon. Any such equity investment in a small business may be redeemed by such small business upon payment to the planning and development district or qualified entity of the principal amount of such equity investment, plus six percent (6%) interest, compounded annually from the date of such equity investment, provided such repayment is tendered within seven (7) years of the date of such equity investment.
(g) A planning and development district or qualified entity shall not utilize more than one-third (1/3) of all grant funds received for equity investments in small businesses.
(h) No small business shall receive assistance under the program in excess of Two Hundred Fifty Thousand Dollars ($250,000.00).
(i) All assistance applications must be reviewed by, and the terms and conditions of the assistance must be recommended to the planning and development district or qualified entity, by a small business assistance review board established by the planning and development district or qualified entity, consisting of the following members appointed by the planning and development district or qualified entity:
(i) Two (2) individuals with current experience in banking or finance;
(ii) Two (2) principal or majority owners of private, for-profit commercial enterprises qualifying as small businesses under this article;
(iii) One (1) senior officer of a private, for-profit commercial enterprise not qualifying as a small business under this article or the executive director of an industrial or economic development foundation;
(iv) One (1) individual who is a minority and who has current experience in banking or finance or who is the principal or majority owner of a private, for-profit commercial enterprise qualifying as a small business under this article; and
(v) One (1) individual who is female and who has current experience in banking or finance or who is the principal or majority owner of a private, for-profit commercial enterprise qualifying as a small business under this article.
As used in this paragraph, "minority" shall mean individuals who are Asian, Black, Hispanic or Native American as defined in Section 31-7-13(s), Mississippi Code of 1972.
All members of such small business assistance review boards shall be residents of the area served by the planning and development district or qualified entity. Small business assistance review boards shall meet at least quarterly and shall meet anytime there are at least two (2) assistance applications pending that require review.
(j) If the small business assistance review board recommends that assistance be provided, the planning and development district or qualified entity may either approve and provide the assistance on the exact terms and conditions recommended by the small business assistance review board or determine not to provide such assistance. Under no circumstances may the planning and development district or qualified entity provide such assistance on any terms or conditions not approved and recommended by the small business assistance review board. If the planning and development district or qualified entity determines not to provide the assistance that the small business assistance review board has recommended to be provided, the board of directors of such district or the governing body of such entity shall place in its minutes an explanation of the reasons for such refusal. If the small business assistance review board recommends against providing the assistance, the board of directors of the planning and development district or the governing body of the qualified entity may not determine to provide such assistance under any terms and conditions.
(k) Any small business that has received a loan under this chapter may apply to the MDA to have the payments on the loan deferred if the deferral will play a significant role in improving the financial condition of the small business and assist the small business to succeed and remain a viable operation. A deferral granted under this paragraph (k) may not exceed four (4) years. A small business desiring assistance under this paragraph (k) must submit an application to the MDA. The application shall include:
(i) The reason for which the deferral is requested;
(ii) An explanation of how the deferral of loan payments will improve the financial condition of the small business and assist the small business;
(iii) The outstanding balance of the loan for which a deferral is requested;
(iv) Financial statements or tax returns for the two (2) years immediately prior to the application;
(v) A business plan;
(vi) Credit reports on all persons or entities with a twenty percent (20%) or greater interest in the small business; and
(vii) Any other information required by the MDA.
A small business that receives a deferral of payments under this paragraph (k) must submit on a semiannual basis information to the MDA for its review to determine whether the deferral of payments is necessary and should continue.
(l) Any small business that has received a loan under this chapter and may apply to the MDA to have the payments on the loan deferred if a public highway or road construction or improvement project has had a substantially adverse impact on its operations and level of business activity. A deferral granted under this Paragraph (k) may not exceed the period of time during which the small business experiences a substantially adverse impact on its business. A small business desiring assistance under this paragraph (k) must submit an application to the MDA. The application shall include:
(i) The reason for which the deferral is requested;
(ii) A description of the public highway or road project that has had a substantially adverse impact on the small business's business and how the project has adversely affected the applicant's business;
(iii) An explanation of how the deferral of loan payments will assist the small business during the period for which the highway or road project is ongoing;
(iv) The outstanding balance of the loan for which the deferral is requested;
(v) Financial statements or tax returns for the two (2) years immediately prior to the application;
(vi) A business plan;
(vii) Credit reports on all persons or entities with a twenty percent (20%) or greater interest in the small business; and
(viii) Any other information required by the MDA.
A small business that receives a deferral of payments under this paragraph (l) must submit on a semiannual basis information to the MDA for its review to determine whether the deferral of payments is necessary and should continue.
SECTION 8. Any enterprise that is granted a deferral of loan payments by the Mississippi Development Authority under Section 57-61-11(g) or (h), 57-61-34(4) or (5), 57-93-1(2)(f) or (g), 57-95-1(2)(e) or (f), 69-2-13(3)(c) or (d), Section 3(4) or (5), Chapter 14, Laws of Fifth Extraordinary Session of 2005, or 57-10-513(k) or (l), shall be allowed a deferral of ad valorem taxes for a period corresponding with the deferral of loan payments.
SECTION 9. Section 27-41-1, Mississippi Code of 1972, is amended as follows:
27-41-1. Except as may otherwise be provided in Section 27-41-2 or Section 8 of House Bill No. ___, 2006 Regular Session, all state, county, school, road, levee and other taxing districts and municipal ad valorem taxes, except ad valorem taxes levied for county or district or municipal bonds and other evidences of indebtedness for money borrowed, and interest thereon, heretofore or hereafter assessed or levied shall be due, payable and collectible by the tax collector and shall be paid on or before the first day of February next succeeding the date of the assessment and levying of such taxes. All taxes levied for county and district and municipal bonds and interest thereon, or betterment or improvement assessments, shall be paid by each person assessed therewith on or before the first day of February next succeeding the date of the assessment and levying of the same, at the time of payment of the state and county ad valorem taxes, except as otherwise hereinafter provided in this chapter. The tax collector shall begin to accept payment for such ad valorem taxes or assessments not later than December 26 of the year prior to the year in which such taxes are required to be paid.
Any county may, by an order spread upon the minutes of the board of supervisors, allow the acceptance of partial payments for ad valorem taxes. Any municipality wherein municipal taxes are not collected by the county may, by an order spread upon the minutes of the governing authority of said municipality, allow the acceptance of partial payments for ad valorem taxes. If said partial payments are allowed by the county or municipality, said partial payments shall be made as follows:
(a) One-half (1/2) of all ad valorem taxes due shall be paid on or before February 1.
(b) One-fourth (1/4) of all ad valorem taxes, interest and penalty due shall be paid on or before May 1.
(c) One-fourth (1/4) of all ad valorem taxes, interest and penalty due shall be paid on or before July 1.
If any unpaid balance exists on August 1, then the lands shall be sold at the land sale on the last Monday in August for said unpaid balance.
All ad valorem taxes, however, assessed against motor vehicles as prescribed by the Motor Vehicle Ad Valorem Tax Law of 1958, for any and all purposes and in any and all jurisdictions, shall be paid in full on the date such taxes are due and payable.
SECTION 10. This act shall take effect and be in force from and after July 1, 2006.