La. Admin. Code tit. 19 § VII-7713

Current through Register Vol. 50, No. 8, August 20, 2024

Section VII-7713 - Investments

A. Co-Investment

1. A qualified or eligible fund that has not received a match investment from the LEDC may apply for co-Investment funds on a case by case basis. The co-investment of LEDC shall not exceed the lesser of 50 percent of the total round of investment needed or $250,000.

2. Only investments in Louisiana businesses are eligible for co-investments.

3. Co-investments will be on the same terms and conditions as the seed capital fund has negotiated with the business included in the co-investment project.

B. Match Investment

1. A qualified or eligible fund may receive a match investment equal to $1 of LEDC funds for each $2 of funds privately raised by the applicant fund. The maximum total dollar amount of an LEDC match investment in an eligible fund shall not exceed $2,000,000.

2. A qualified or eligible fund shall be a Louisiana organized and based seed capital fund. For purposes of this program, organized and based means the seed capital applicant fund is registered with the Louisiana Secretary of State's office, and that it maintains a staffed office in Louisiana where investments may be initiated and closed.

3. Match investment funds may be used only for Louisiana businesses.

4. The method of LEDC's investment into the qualified or eligible fund will be equal to the method of investment of the other investors into that fund, i.e., committed capital for committed capital, cash investment for cash investment, or cash and commitment for cash and commitment.

5. The terms of each match investment will be negotiated by LEDC on a case by case basis.

C. Closing

1. Prior to the disbursement of funds, the secretary-treasurer of LEDC and any one of the following: either the chairman of the board, the president, or the executive director of LEDC, shall execute all necessary legal instruments after certification by legal counsel that all appropriate legal requirements have been met.

La. Admin. Code tit. 19, § VII-7713

Promulgated by the Department of Economic Development, Economic Development Corporation, LR 26:2254 (October 2000), amended by the Department of Economic Development, Office of the Secretary, Office of Business Development and the Louisiana Economic Development Corporation, LR 38:990 (April 2012), LR 40:275 (February 2014).

AUTHORITY NOTE: Promulgated in accordance with R.S. 51:2312.