HOUSE BILL NO. 6242

September 22, 2020, Introduced by Reps. Hood, Hoadley, LaGrand, Tate, Camilleri, Hammoud, Anthony, Kuppa, Warren and Sabo and referred to the Committee on Commerce and Tourism.

A bill to amend 1984 PA 270, entitled

"Michigan strategic fund act,"

(MCL 125.2001 to 125.2094) by adding section 88s.

the people of the state of michigan enact:

Sec. 88s. (1) The fund shall create and operate the Michigan small business property tax loan program to provide loans to qualified businesses in this state.

(2) The Michigan small business property tax loan program shall provide for all of the following:

(a) Loans to assist qualified businesses that were closed on August 1, 2020 due to an executive order issued by the governor to pay unpaid 2020 summer property taxes.

(b) A detailed application, approval, and compliance process published and available on the fund's website. The detailed application, approval, and compliance process must provide all of the following:

(i) That a qualified business may apply for a loan in a form and manner determined by the fund.

(ii) That after receipt of an application, the fund may enter into a written loan agreement with the qualified business.

(iii) That the written loan agreement must provide in a clear and concise manner the interest rate, that the time for repayment must not exceed 24 months, the collection procedures, and any other conditions imposed by the board under this section. The interest rate is 0.00% for the first 12 month of the loan. If the qualified business meets all conditions imposed by the board under this section during the first 12 months of the loan, then the interest rate is 0.00% for the remainder of the loan. If the qualified business does not meet all conditions imposed by the board under this section during the first 12 months of the loan, then the interest rate is the prime rate for the remainder of the loan, as determined by the board.

(iv) That the proceeds of the loan must be used to pay 2020 summer property taxes of the qualified business.

(c) A loan to a qualified business under this section must not exceed $1,000,000.00.

(3) The fund shall post on its website or post on the website of the Michigan economic development corporation the name and location of each qualified business that received a loan under this section and the amount of the loan.

(4) As used in this section:

(a) "Qualified business" means a business that meets all of the following:

(i) Is located in or operates in this state.

(ii) Was closed for its primary purpose on August 1, 2020 as a result of the COVID-19 pandemic as determined by the fund.

(iii) Earned less than 5% of its average monthly revenue from April 1, 2020 through July 31, 2020, compared to its average monthly revenue in the 48 months prior to March 1, 2020, or as compared to all months the business operated prior to March 1, 2020, if the business began operation after March 31, 2016, as determined by the fund.

(iv) Has unpaid 2020 summer property taxes for property that was closed as described in subparagraph (ii).

(v) Has entered into a written agreement with the local tax collecting unit to use the proceeds of the loan to pay the 2020 summer property taxes.

(b) "Summer property taxes" means that term as defined in section 51 of the general property tax act, 1893 PA 206, MCL 211.51.