1. The department of economic development is authorized to administer a microenterprise loan program. For purposes of sections 620.1069 to 620.1081, the term “microenterprise” means a small business, with no more than ten employees, in which the owner, or members of the owner’s immediate family, provide the majority of management and a significant amount of labor required to operate the business. For purposes of sections 620.1069 to 620.1081, the term “immediate family” means the spouse of an owner, the owner’s children, including the owner’s adult children, who reside in the owner’s home. The loan program shall be designed to provide financing for the expansion, modernization or improvement of existing microenterprises or for the commencement of new microenterprises.

2. The director of the department of economic development shall appoint an oversight committee of nine members which may include, but is not limited to, representatives of state government, banks, business assistance providers, entrepreneurs, or not-for-profit organizations, to assist in administering the provisions of sections 620.1069 to 620.1081. The director of the department of economic development, or the director’s designee, shall serve as chairman of the oversight committee. The committee shall be appointed to serve at the pleasure of the director and shall receive no compensation, but shall be reimbursed for expenses incurred in the performance of any duties required as members of the oversight committee. The committee, after review of applications, shall designate microenterprise loan programs in the state and the geographical boundaries in which each will operate.