Louisiana Administrative Code › Title 19 - CORPORATION AND BUSINESS › Part VII - Louisiana Economic Development Corporation › Subpart 11 - Louisiana Seed Capital Program (LSCP) › Chapter 89 - SSBCI Seed Capital ARPA 2021 › Section VII-8903 - Definitions

Current through Register Vol. 50, No. 6, June 20, 2024
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.
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
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.
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.
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).
Seed Capital
-
a. a dollar amount of not less than $25,000
				  of capital provided to an inventor or entrepreneur to prove a concept and to
				  qualify for start-up capital, which may involve product development and market
				  research, as well as building a management team and developing a business plan,
				  if the initial steps are successful;
b. research and development financing to
				  finance product development for start-up as well as early-stage companies
				  (which may include a company that may already be in business for three years or
				  less);
c. start-up or early-stage
				  financing to companies completing product development and initial marketing
				  which companies may be in the process of organizing or they may already be in
				  business for three years or less, but have sold their product commercially;
				  or
d. first-stage or early-stage
				  financing to companies that have expended their initial capital and require
				  funds to initiate full-scale manufacturing and sales, for costs of inventory,
				  equipment, expansion, modernization, and for working capital
				  purposes.
Socially and Economically Disadvantaged Individuals
					 (SEDI)-Owned Business
-
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.
Venture Capital Fund-
also referred to
					 herein as a
seed capital fund
, or the
applicant
					 organization;
a fund that makes and manages a portfolio of investments
					 in individual companies or businesses.
Very Small Business (VSB)
-a business which
					 employees 10 or less employees, including independent contractors and sole
					 proprietors.