1. Development and expansion of businesses in economically distressed communities in both rural and urban areas can assist residents who are unemployed, underemployed or in low-income jobs.

2. Microenterprises provide a means for unemployed, underemployed or low-income individuals to find and sustain productive work, and they provide opportunities for economically distressed communities to thrive.

3. Low-income microentrepreneurs lack access to capital, training and technical assistance. Many low-income microentrepreneurs need lending services and technical assistance to start, operate or expand their businesses.

4. Local microenterprise support organizations have demonstrated cost-effective delivery methods for providing lending services and technical assistance.

5. Charitable foundation support, federal program funding and private sector support can be leveraged by a statewide program for development of microenterprises.

1. “Secretary” means the Secretary of the Department of [Economic Development].

2. “Microenterprise” means a sole proprietorship, partnership, or corporation that has fewer than five employees and generally lacks access to conventional loans, equity, or other banking services.

3. “Microenterprise development organization or program” means a nonprofit entity or a program administered by such an entity, including community development corporations or other nonprofit development organizations and social service organizations, that provides services to low-income microenterprises.

4. “Training and technical assistance” means services and support provided to low-income owners and operators of microenterprises, such as assistance for the purpose of enhancing business planning, marketing, management, financial management skills, and assistance for the purpose of accessing financial services.

5. “Low-income person” means a person with income adjusted for family size that does not exceed:

1. The Secretary shall establish a microenterprise technical assistance and capacity building grant program to provide assistance in the form of grants to qualified organizations.

2. A qualified organization shall use grants made under this program to provide training and technical assistance to low-income entrepreneurs.

3. To be eligible for a grant, a qualified organization shall be a nonprofit microenterprise development organization that has a demonstrated record of delivering services to low-income individuals.

4. The Secretary shall ensure that not less than 50 percent of the funds made available are used to benefit persons whose income, adjusted for family size, is not more than 150 percent of the poverty line as defined in 42 U.S.C. 9902(2).

5. A qualified organization must provide at least one dollar in matching funds for every dollar of state financial assistance. Fees, grants, and gifts from public or private sources may be used to comply with the matching funds requirement.

6. The Secretary shall establish by regulation such requirements as may be necessary to carry out this section.