Rhode Island General Laws 42-64.33-6. Request for determination
A small business development fund, before making a qualified investment, may request from the corporation a written opinion as to whether the business in which it is proposed to invest is an eligible business. The corporation, not later than the fifteenth business day after the date of receipt of the request, shall notify the small business development fund of its determination. If the corporation fails to notify the small business development fund by the fifteenth business day of its determination, the business in which the small business development fund proposes to invest shall be considered an eligible business.
History of Section.
P.L. 2019, ch. 88, art. 12, § 10.
Terms Used In Rhode Island General Laws 42-64.33-6
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Corporation: means the Rhode Island commerce corporation. See Rhode Island General Laws 42-64.33-2
- Eligible business: means a business that, at the time of the initial qualified investment in the company:
(i) Has less than two hundred fifty (250) employees;
(ii) Has not more than fifteen million dollars ($15,000,000) in net income from the preceding tax year;
(iii) Has its principal business operations in this state; and
(iv) Is engaged in industries related to clean energy, biomedical innovation, life sciences, information technology, software, cyber physical systems, cybersecurity, data analytics, defense, shipbuilding, maritime, composites, advanced business services, design, food, manufacturing, transportation, distribution, logistics, arts, education, hospitality, tourism, or, if not engaged in the industries, the corporation makes a determination that the investment will be beneficial to the economic growth of the state. See Rhode Island General Laws 42-64.33-2
- Qualified investment: means any investment in an eligible business or any loan to an eligible business with a stated maturity date of at least one year after the date of issuance, excluding revolving lines of credit and senior secured debt unless the eligible business has a credit refusal letter or similar correspondence from a depository institution or a referral letter or similar correspondence from a depository institution referring the business to a small business development fund; provided that, with respect to any one eligible business, the maximum amount of investments made in the business by one or more small business development funds, on a collective basis with all of the businesses' affiliates, with the proceeds of capital investments shall be twenty percent (20%) of the small business development fund's capital investment authority, exclusive of investments made with repaid or redeemed investments or interest or profits realized thereon. See Rhode Island General Laws 42-64.33-2
- Small business development fund: means an entity certified by the corporation under Rhode Island General Laws 42-64.33-2