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HSB 127

A bill for an act relating to small businesses and the community attraction and tourism program.

2025-2026 Regular Session

HSB 127 boosts Iowa's small businesses by providing grants and loans, enhancing community development and tourism, especially in smaller cities and counties.

Subcommittee recommends passage.
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Bill Summary · HSB 127

Summary of HSB 127: Small Businesses and Community Attraction and Tourism Program

Bill Number: HSB 127
Introduced: February 5, 2025
Status: Subcommittee recommends passage
Classification: Proposed Bill
Subject Areas: City Government, Community Attraction and Tourism Program, Community Development, County Government, Grants, Small Businesses, Tourism

Purpose and Intent

HSB 127 aims to enhance support for small businesses in Iowa by amending the existing Community Attraction and Tourism Program. The bill seeks to provide financial assistance to small businesses and local governments, thereby fostering community development and boosting tourism in the state.

Key Provisions

Definition of Small Business

  • The bill introduces a new definition of "small business" in Section 15F.201:
    • An enterprise located in Iowa, operated for profit, and under single management.
    • Must have fewer than 20 employees or an annual gross income of less than $4 million, calculated as the average of the preceding three fiscal years.

Financial Assistance Applications

  • Section 15F.202 is amended to allow:
    • Cities, counties, public organizations, and small businesses to apply for financial assistance.
    • Assistance can be in the form of grants, loans, forgivable loans, and credit enhancement.

Allocation of Funds

  • Section 15F.204 outlines how funds will be allocated:
    • One-third of the funds will be designated for:
    • Cities with populations of 10,000 or less.
    • Counties that rank in the bottom 33 by population.
    • Two-thirds of the funds will be available for any small business, city, or county in Iowa, including those that qualify under the first category.

Impact

Who Will Be Affected?

  • Small Businesses: The bill directly supports small businesses by providing access to financial resources, which can help them grow and contribute to local economies.
  • Cities and Counties: Local governments, particularly smaller ones, will benefit from financial assistance aimed at enhancing community attractions and tourism initiatives.
  • Tourism Sector: By improving community attractions, the bill aims to boost tourism, which can lead to increased economic activity in the state.

Procedural Aspects

  • The bill was introduced and referred to the Economic Growth and Technology Committee on February 5, 2025.
  • A subcommittee meeting was held on February 6, 2025, and the subcommittee recommended passage on February 11, 2025.

Conclusion

HSB 127 represents a strategic effort to bolster small businesses and enhance community development through targeted financial assistance. By redefining small business criteria and outlining a clear allocation of funds, the bill aims to stimulate economic growth and improve tourism in Iowa.

Compiled from official sources — confirm details with the bill’s official record.

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