620.1075. Standards for eligibility of lenders and borrowers--rules promulgation procedure--rules invalid, when.
Standards for eligibility of lenders and borrowers--rules promulgationprocedure--rules invalid, when.
620.1075. The department of economic development, with the advice ofthe oversight committee established pursuant to section 620.1069, may adoptand promulgate rules and regulations for determining eligible lenders andeligible borrowers pursuant to sections 620.1069 to 620.1081. No rule orportion of a rule promulgated under the authority of sections 620.1069 to620.1081 shall become effective unless it has been promulgated pursuant tothe provisions of chapter 536, RSMo. All rulemaking authority delegatedprior to June 27, 1997, is of no force and effect and repealed; however,nothing in this section shall be interpreted to repeal or affect thevalidity of any rule filed or adopted prior to June 27, 1997, if such rulecomplied with the provisions of chapter 536, RSMo. The provisions of thissection and chapter 536, RSMo, are nonseverable and if any of the powersvested with the general assembly pursuant to chapter 536, RSMo, includingthe ability to review, to delay the effective date, or to disapprove andannul a rule or portion of a rule, are subsequently held unconstitutional,then the purported grant of rulemaking authority and any rule so proposedand contained in the order of rulemaking shall be invalid and void. Thestandards shall include, but are not limited to, the following:
(1) All eligible lenders shall be approved by the oversightcommittee, and each eligible lender shall maintain all records of all loansmade pursuant to sections 620.1069 to 620.1081. Eligible lenders shall becommunity development corporations, community colleges or othercommunity-based organizations which have experience in the area of businessassistance;
(2) The total amount of any loan made to any one eligible borrowershall not exceed fifteen thousand dollars;
(3) Prior to receiving either an institution-based loan or agroup-based loan from an eligible lender, each eligible borrower mustconfer with a qualified business assistance provider for advice onmanagement techniques and other professional advice which the department ofeconomic development may require to help ensure the likelihood of successfor the microenterprise. A qualified business assistance provider mayinclude the department of economic development, a small business assistancecenter, or any other similar organization approved by the department.
(L. 1994 H.B. 1248 & 1048 § 12, A.L. 1997 2d Ex. Sess. S.B. 1)Effective 12-23-97