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Legislature Passes $10 Million Business Loan Measure

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The Associated Press

Published: January 15, 2009

TALLAHASSEE - At least 34 Florida businesses would be eligible to obtain low-interest loans from the state to help them expand under a bill lawmakers passed Wednesday.

The measure, which now goes to Gov. Charlie Crist for his signature, provides $8.5 million in loans of up to $250,000 for growth companies employing 10 to 50 people.

"This is not a bailout, unlike what we're seeing in Washington," said Sen. Mike Fasano, R-New Port Richey, the measure's sponsor. "This program actually helps existing companies stay in their local communities. We want to make certain that companies we have here today are staying and expanding."

Crist and Dale Brill, the head of the state's Office of Tourism, Trade and Economic Development, suggested the so-called "economic gardening" stimulus this month during a meeting with a group of business leaders at the governor's mansion.

The Republican-led Legislature delivered, by 111-7 in the House and 29-11 in the Senate, which debated the measure for roughly 30 minutes.

"We are helping businesses with the greatest potential for job creation," Crist says in a written statement from his office. "By helping them build their futures now, we can plant the seeds that our homegrown businesses need to flourish."

Businesses that show growth potential would be eligible for the loans at a 2 percent interest rate if they guarantee they will create jobs.

Supporters argued that such "economic gardening" is needed to help businesses that cannot get loans for expansion because of tight credit in the commercial market.

Critics argued that it amounts to little more than corporate welfare.

"It's incomprehensible for us to say that we're going to be making cuts and we have a $10 million giveaway," said Senate Democratic Leader Al Lawson, D-Tallahassee. "The government does not need to get involved in this."

There also was concern that the deck might be stacked on which consultant might receive the $1.5 million administrative fee to pick the recipients of the loan and give technical assistance if needed.

However, Senate President Jeff Atwater, R-North Palm Beach, promised that lawmakers would keep a close eye on the process.

"If I were to see any indication that there was favorable treatment given to someone who has teed up something for their own taking, we wouldn't look favorably on that," Atwater said.

Several senators on both sides of the political aisle argued that the $8.5 million in assistance is not enough to make a difference.

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