Source: https://vacode.org/2.2-1616/
Timestamp: 2020-06-01 12:28:45
Document Index: 308461990

Matched Legal Cases: ['§ 2', '§ 2', '§ 2', '§ 58', '§ 58', '§ 2']

Creation, administration, and management of the Small Business Investment Grant Fund (§ 2.2-1616)—Virginia Decoded - Virginia Decoded
← Previous2.2-1615 Small Business Jobs Grant Fund Program
2 Small Business Jobs Grant Fund Program And Small Business Investment Grant Fund
§ 2.2-1616 Creation, administration, and management of the . . .
§ 2.2-1616
Creation, administration, and management of the Small Business Investment Grant Fund
A. As used in this section:”Authority” means the Virginia Small Business Financing Authority.”Eligible investor” means an individual subject to the tax imposed by § 58.1-320. The term shall not include an individual who engages in the business of making debt or equity investments in private businesses, or to any person that would be allocated a portion of the grant under this section as a partner, shareholder, member, or owner of an entity that engages in such business.”Fund” means the Small Business Investment Grant Fund.”Pass-through entity” means the same as that term is defined in § 58.1-390.1.”Qualified investment” means a cash investment in a qualified business in the form of equity or subordinated debt. However, an investment shall not be qualified if the taxpayer who holds such investment, or any of the taxpayer’s family members, or any entity affiliated with such taxpayer, receives or has received compensation from the qualified business in exchange for services provided to such business as an employee, officer, director, manager, independent contractor, or otherwise in connection with or within one year before or after the date of such investment. For the purposes hereof, reimbursement of reasonable expenses incurred shall not be deemed to be compensation.”Small business” means a corporation, pass-through entity, or other entity that (i) has annual gross revenues of no more than $ 5 million in its most recent fiscal year; (ii) has its principal office or facility in the Commonwealth; (iii) is engaged in business primarily in or does substantially all of its production in the Commonwealth; (iv) has not obtained during its existence more than $ 3 million in aggregate gross cash proceeds from the issuance of its equity or debt investments, not including commercial loans from national or state-chartered banking or savings and loan institutions; (v) has no more than 50 employees who are employed within the Commonwealth; and (vi) has been designated as such by the Authority pursuant to the provisions of this section.”Subordinated debt” means indebtedness of a corporation, general or limited partnership, or limited liability company that (i) by its terms required no repayment of principal for the first three years after issuance, (ii) is not guaranteed by any other person or secured by any assets of the issuer or any other person, and (iii) is subordinated to all indebtedness and obligations of the issuer to national or state-chartered banking or savings and loan institutions.
C. An eligible investor that makes a qualified investment in a small business on or after July 1, 2012, but prior to January 1, 2019, that has been certified by the Authority pursuant to subsection D shall be eligible for a grant in an amount equal to 10 percent of the qualified investment. An eligible investor may apply for a grant for each qualified investment that is made to one or more small businesses not to exceed a total grant allocation from the Fund of $ 250,000 per eligible investor.
E. Any eligible investor applying for a grant pursuant to this section shall submit an application to the Authority. Alternatively, a small business may apply to the Authority on behalf of an eligible investor. The Authority shall determine the amount of the grant allowable to the eligible investor for the year.
F. Unless the eligible investor transfers the equity received in connection with a qualified investment as a result of (i) the liquidation of the small business issuing such equity; (ii) the merger, consolidation, or other acquisition of such business with or by a party not affiliated with such business; or (iii) the death of the eligible investor, any eligible investor that fails to hold such equity for at least two years shall forfeit the grant and shall pay the Authority interest on the total allowed grant at the rate of one percent per month, compounded monthly, from the date the grant was awarded to the taxpayer. The Authority shall deposit any amounts received under this subsection into the general fund of the Commonwealth.
2013, c. 482; 2016, c. 520.
If you’re reading this for anything important, you should double-check its accuracy—read § 2.2-1616 on the official Code of Virginia website.
SB319: Small Business Investment Grant Fund; administration; qualifications. (failed)
HB1968: Small Business Investment Grant Fund; changes to Fund. (passed)
HB2347: Small Business Investment Grant Fund; recapture of awards. (passed)
HB1505: Small Business and Supplier Diversity, Department of; small business grant funds. (passed)
HB472: Virginia Small Business Financing Authority; scoring system. (failed)