SENATE FILE NO.           

Challenge loans.

Sponsored by:  Joint Agriculture, Public Lands and Water Resources Interim Committee

A BILL

for

AN ACT relating to the Wyoming Partnership Challenge Loan Program; changing the criteria for loans under this program; and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1.  W.S. 9-12-301(a)(v) and 9-12-304(b)(i) are amended to read:

9-12-301.  Definitions.

(a)  As used in this article:

(v)  "Economic disaster" means an event occurring in Wyoming that has an economic impact with total lost revenues to impacted businesses in a preceding twelve (12) calendar month period of at least four million dollars ($4,000,000.00) or an economic impact with total lost revenues to impacted businesses in fewer than ?????? counties in a preceding twelve (12) calendar month period of at least one million five hundred thousand dollars ($1,500,000.00).  The business council may use good faith estimates of lost revenues to businesses in determining whether an event qualifies as an economic disaster;

***  STAFF COMMENTS  ***

Representatives of the business council and the banking commission thought "preceding" should be inserted to clarify that losses had to have happened; that the language did not refer to future speculative losses.  Many thought that adding a regional requirement would help more situations without extending the loans to many businesses.  There was discussion that the number of counties should be three or four.

     9-12-304.  Criteria for loans.

(b)  Loans or loan commitments or any combination thereof shall be made under this article only:

           (i)  If the total amount to a single community development organization, or to a business for an economic disaster loan as provided under subsection (c) of this section or to a business for bridge financing as provided under subsection (d) of this section, does not exceed two hundred fifty thousand dollars ($250,000.00), or if the total amount to a state development organization does not exceed one million dollars ($1,000,000.00);

***  STAFF COMMENTS  ***

Initially, the working group considered raising these amounts.  There was some consensus that since it was such a new program, it was premature to change the amounts until there was enough time to see how the present amounts worked.

Section 2.  This act is effective July 1, 2002.

(END)