La. Admin. Code tit. 19 § VII-2905

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

Section VII-2905 - Eligibility for Venture Capital Fund to Participate in This Program

A. LEDC will undertake a formal evaluation process and consider various factors when determining which applicants will be selected to participate in this program. Among the factors which may be taken into account in the evaluation process are the following;

B. Eligible applicants are venture capital funds:

1. with a minimum of $500,000 in investments or has a minimum of $2 1/2 million under management;

2. already has on hand cash sums sufficient to cover the general and administrative costs for the first and early years of its operations for participation in the SSBCI Venture Capital Program;

3. has proven, experienced management recognized in the venture capital community. The management should have significant management experience in risk investments of the types and volumes contemplated by the applicant venture capital funds;

4. are encouraged to have a production office based in Louisiana with permanent employees employed by the fund capable of evaluating potential investment opportunities.

C. In addition to the eligibility provisions provided in the Section mentioned in the above Subsection A, LEDC investments made in venture capital funds and programs in connection with this program shall meet the following criteria:

1. the venture capital fund(s) shall target an average business-size of 500 employees or less at the time the individual business investment is made;

2. it is strongly encouraged for each venture capital fund(s) to make every effort to target and invest in SEDI-owned businesses and VSB;

3. such individual business investments shall not be extended to businesses with more than 750 employees;

4. any investment targeted in this program shall not exceed the amount of $ 5,000,000; and

5. any investment transaction or investment round extended through this program shall not exceed the amount of $20,000,000.

D. The board has the sole discretion to determine whether or not each particular applicant is eligible and meet the criteria for program participation, and in all such circumstances, the exercise of that discretion shall be deemed to be a final determination.

La. Admin. Code tit. 19, § VII-2905

Promulgated by the Department of Economic Development, Office of Business Development and the Louisiana Economic Development Corporation, LR 481492 (6/1/2022).

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