Business address Enter the full publicly listed physical address. If a PO Box, you must list the physical address as well. Home Address the full publicly listed physical address. If a PO Box, you must list the physical address as well. RBIC Office where person will be located Enter any address that is different from the Business address. If the same address, enter “same as business address”. 106 for Principals not in same geographic location Address any arrangements that will be made (Tele-work, relocation etc) that will address any geographic differences between the Principals after licensing. 107 – Regulatory Capital Regulatory Capital means Private Capital, excluding non-cash assets contributed to a RBIC or an Applicant unless such assets have been converted to cash or have been approved by the Secretary for inclusion in Regulatory Capital. For purposes of this definition, sales of contributed non-cash assets with recourse or borrowings against such assets shall not constitute a conversion to cash. Table 107.1 - Current Status of Funding Enter the dollar amounts of the different types of Investors that will contribute capital to the fund. Table 107.2 – Anticipated Source of Regulatory Capital Enter here the different entities that will be contributing capital, the amount you have requested, the amount actually committed and the date of that commitment or the estimate of the date. Actual Name Enter the legal name of the entity in full. Amount requested Enter the amount of the capital you requested from the source. Amount Committed Enter the amount that has been committed to the fund. Estimated Date of Commitment Enter the estimated or actual date of the commitment. 108 – Closing Date Enter the anticipated closing date of the commitments. This date must be within the 24 month period allowed to raise capital.
4.1 Seed Enter the percentage that is anticipated to be invested in seed money. Early Stage the percentage that is anticipated to be invested in early stages. Expansion Enter the percentage that is anticipated to be invested in business expansion. Later Stage Enter the percentage that is anticipated to be invested in late stages. Change of Control Enter the percentage that is anticipated to be invested in change of control. Turn-around the percentage that is anticipated to be invested in turn around. 204.2 Size of businesses to be financed Enter the range from low to high of the size of businesses you will most likely fund. The number should reflect revenue figures as well as EBITDA (earnings before interest, taxes, depreciation, and amortization). 205 Market analysis of targeted rural area This section discusses your analysis of the market potential of the areas covered in the RBIC. 205.1 Demand for development venture capital Provide the extent of demand for Developmental Venture Capital in your targeted Rural Areas and how you plan to meet this demand. You will need to cite the backup data that you are using for the justification of your assumptions (your own market research, research done by others) and if possible, quantify this. 205.2 Factors or trends affecting ability Factors could be demographics, economic data etc. 205.3 Other equity capital providers Discuss sources of Equity Capital in the target area and how of if those other sources will compete with yours. 205.4 Leading business activities Describe the leading business activities, if any, that are characteristic of your targeted Areas. If there aren’t any leading business activities, enter “N/A”. 205.5 Other market information and analysis Provide any miscellaneous information that was not previously covered any of the sections in 205. 206 Reserved 207 Identification of Areas This section references the geographical footprint of the RBIC.
212.1 what is your targeted IRR your targeted Internal rate of return. 212.2 Pricing deals where the company has earnings Enter the methodology you would use to price a deal with earnings. 212.3 Pricing deals without positive earnings Enter the methodology you would use to price a deal without earnings. 212.4 Milestone financing Enter Yes if you intend on doing milestone financing, no if not. If yes, you need to state the key types of criteria to establish the milestones. 212.5 Subsequent financing rounds Enter if you intend on doing subsequent rounds of funding as a yes or no answer. If you answer yes, include either a percentage or a dollar figure for the first round. If you intend on only funding first round, enter “see 218”. 213 Typical financing structure Enter the structure of finance for your typical deal with interest rate ranges, fees and security. 214 Anticipated allocation of types of financings This section asks a breakdown by percentage of the types of financing intended in the RBIC. They should add up to 100% for non leveraged applicants and 200% for leveraged. Table 214 Equity securities Enter the proposed percentage of fund allocation as Equity Securities. Debt securities Enter the proposed percentage of fund allocation as Debt Securities. Loan Enter the proposed percentage of fund allocation as Loans. 215 Projected fund level For leveraged status Applicants, complete this section on the full 200% Leverage. For non-leveraged status Applicants, complete this section based on the allocation of funds as reflected in your business model. 215.1 Number of portfolio concerns Enter numerical figures that show how you expect to have your investments distributed by total amount per company. Give a table with the smallest first and the largest last. Table 215.1 $ Size range Provide a range from small to large.
420 investment criteria If you answered Yes to 419, also include here the criteria used to and prescreen applicants. If you answered No, enter “N/A”. 421 Termination and disposition of portfolio criteria Enter the criteria for termination or disposition (sale) of Portfolio Concerns, under different circumstances including but not limited to success, loss, “living dead”. Relay how the length of time that an investment has been in your Portfolio may affect your decision, if it does. 422 Decision making process This section discusses the decision making process for applications for funding. 422.1 Internal steps for putting an investment prospect to a vote Enter the process continuing from Question 408 regarding the logging in of prospects. This section requires a narrative that takes the application from log in to it being considered for a vote in committee. 422.2 Reports Enter the type of report made before an investment, the depth of its coverage and length. It may be ok to refer to attachments in Exhibit P. 422.3 Meetings if meeting will be held periodically or only as needed. Discuss how the agenda will be determined and if all Principals must be physically present at the meeting of via alternate method, etc. 422.4 Decision making process Enter the voting procedures for the decision making process. Include persons who have veto or more powers than other, how many votes constitutes a decision (simple majority, super majority, unanimity etc). 422.5 Closing investment memo Enter if you intend on having a closing investment memo. If the answer is “yes” include the subjects it will cover. If “no”, discuss why you will not. 422.6 Tracking changes in investment agreements Enter any system you will have in place to track changes in your investment agreement. 423 Cross references to Exhibits O and Q Indicate here if any items addresses in 415 through 422 are also in your legal documents as Exhibit O.