La. Admin. Code tit. 19 § VII-2903

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

Section VII-2903 - Definitions

A. Terms not otherwise defined in this Chapter shall have the same meaning given to them in prevailing federal guidelines issued by the U.S. Treasury, unless the context clearly requires otherwise.

B. In this Chapter, the following terms shall have the meanings provided herein, unless the context clearly indicates otherwise.

Board-Board of Directors of Louisiana Economic Development Corporation.

Business Partner of an SSBCI Insider-a person who owns 10 percent or more of any class of equity interest, on a fully diluted basis, in any private entity in which an SSBCI insider also owns 10 percent or more of any class of equity interest on a fully diluted basis.

Community Development Financial Institution (CDFI)-has the meaning given that term under Section 103 of the Riegle Community Development and Regulatory Improvement Act of 1994.

Community Development Financial Institution (CDFI) Investment Area-areas defined by CDFI which are generally low-income, high poverty geographies that receive neither sufficient access to capital nor support for the needs of small businesses, including minority-owned businesses.

Corporation-Louisiana Economic Development Corporation.

Direct Investment-an investment in which financial investors take part with each other and act jointly by uniting or combining together to invest directly into individual companies or businesses

Family Member of an SSBCI Insider-such person's spouse, domestic partner, parents, grandparents, children, grandchildren, brothers, sisters, stepbrothers, and stepsisters; and any other relatives who live in the same household as the SSBCI insider.

Independent Non-Profit Entity-any non-profit entity that is not state- sponsored.

LED-Louisiana Department of Economic Development.

LEDC-Louisiana Economic Development Corporation, as known as Corporation.

Owned and Controlled-if privately owned, 51 percent is owned by such individuals; if publicly owned, 51 percent of the stock is owned by such individuals; and in the case of a mutual institution, a majority of the board of directors, account holders, and the community which the institution services is predominantly comprised of such individuals.

Personal Financial Interest-any financial interest derived from ownership or right to ownership of, or lending to or other investment in, a private, for-profit entity that may receive an SSBCI investment (including any financial interest derived from ownership or right to ownership of, or investment in, a venture capital fund).

Risk Investment-an investment that may provide equity through the purchase of common stock, preferred stocks, partnership rights or any other equity investment. Additionally it may mean debt positions, which may act as equity or have equity features such as subordinated debt, debentures or other such instruments used in conjunction with features intended to yield significant capital appreciation.

Socially and Economically Disadvantaged Individuals (SEDI) Owned Business-for the purposes of this program:

a. business enterprises that certify that they are owned and controlled by individuals who have had their access to credit on reasonable terms diminished as compared to others in comparable economic circumstances, due to their:

i. membership of a group that has been subjected to racial or ethnic prejudice or cultural bias within American society;

ii. gender;

iii. veteran status;

iv. limited English proficiency;

v. physical handicap;

vi. long-term residence in an environment isolated from the mainstream of American society;

vii. membership of a federally or state-recognized Indian Tribe;

viii. long-term residence in a rural community;

ix. residence in a U.S. territory;

x. residence in a community undergoing economic transitions (including communities impacted by the shift towards a net-zero economy or deindustrialization); or

xi. membership of another underserved community as defined in U.S. Executive Order 13985;

b. business enterprises that certify that they are owned and controlled by individuals whose residences are in CDFI Investment Areas, as defined in prevailing federal guidelines issued by the U.S. Treasury;

c. business enterprises that certify that they will operate a location in a CDFI Investment Area, as defined in prevailing federal guidelines issued by the U.S. Treasury; or

d. business enterprises that are located in CDFI Investment Areas, as defined in prevailing federal guidelines issued by the U.S. Treasury.

SSBCI Insider-a person who, in the 12-month period preceding the date on which SSBCI support for a specific investment in a venture capital fund or company is closed or completed:

a. was:

i. a manager or staff member, whether by employment or contract, in the state's SSBCI venture capital program;

ii. a government official with direct oversight or jurisdiction over an SSBCI venture capital program, or such an official's immediate supervisor;

iii. a member of the board of directors or similar body for a state-sponsored non-profit entity who, through such membership, has authority to vote on decisions to invest SSBCI funds or has authority over the employment or compensation of staff managing processes related to the investment of SSBCI funds;

iv. a member of the board of directors or similar body for an independent non- profit or for-profit entity that operates an SSBCI venture capital program; or

v. an employee, volunteer, or contractor on an investment committee or similar body that recommends or approves SSBCI investments under the SSBCI venture capital program; or

b. exercised a controlling influence on state decisions regarding:

i. the allocation of SSBCI funds among approved state venture capital programs;

ii. eligibility criteria for the state's SSBCI venture capital programs; or

iii. the processes for approving investments of SSBCI funds under the state's SSBCI venture capital program.

State-Sponsored Non-Profit Entity-a non-profit entity created by state legislation to pursue policies of the state government and over which state officials exercise a controlling influence through budgetary decisions or other legislative action or direction.

Valuation of Investment Fund-the value of any monies invest or otherwise used as risk capital in businesses plus the unexpended monies available for investment or used as risk capital.

Venture Capital Fund-a fund that makes and manages a portfolio of investments in individual companies or businesses. also referred to herein as the applicant organization;

Very Small Business (VSB)-a business which employees 10 or less employees, including independent contractors and sole proprietors.

La. Admin. Code tit. 19, § VII-2903

Promulgated by the Department of Economic Development, Office of Business Development and the Louisiana Economic Development Corporation, LR 481491 (6/1/2022).

AUTHORITY NOTE: Promulgated in accordance with R.S. 36:104, 36:108 and 51:2312