Rhode Island General Laws 42-64.33-7. Reporting obligations
(a) Each small business development fund shall submit a report to the corporation on or before the fifth business day after the first, second, and third anniversaries of the closing date. The report shall provide documentation as to the small business development fund’s qualified investments and include:
(1) A bank statement evidencing each qualified investment;
(2) The name, location, status as a minority business enterprise if applicable, and industry of each business receiving a qualified investment, including either the determination letter set forth in § 42-64.33-6 or evidence that the business qualified as an eligible business at the time the investment was made;
(3) The number of employment positions created or retained as a result of the small business development fund’s qualified investments as of the last day of the preceding calendar year; and
(4) Such other reasonable information as the corporation may require.
Terms Used In Rhode Island General Laws 42-64.33-7
- Capital investment: means any equity or debt investment in a small business development fund by a small business fund investor that:
(i) Is acquired after July 5, 2019, at its original issuance solely in exchange for cash;
(ii) Has one hundred percent (100%) of its cash purchase price used by the small business development fund to make qualified investments in eligible businesses located in this state within three (3) years of the initial credit allowance date; and
(iii) Is designated by the small business development fund as a capital investment under this chapter and is certified by the corporation pursuant to Rhode Island General Laws 42-64.33-2
- 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
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Minority business enterprise: means an eligible business which is certified by the Rhode Island office of diversity, equity and opportunity as being a minority or women business enterprise. 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
(b) On or before the last day of February of each year following the final year in which the report required in subsection (a) of this section is due, the small business development fund shall submit an annual report to the corporation including the following:
(1) The number of employment positions created or retained as a result of the small business development fund’s qualified investments as of the last day of the preceding calendar year;
(2) The number of minority business enterprises that have received qualified investments and the amount of qualified investment that such minority business enterprises have received;
(3) The average annual salary of the positions described in subsection (b) (1) of this section;
(4) The follow-on capital investment that has occurred along with or after the small business development fund’s investment as of the last day of the preceding calendar year; and
(5) Such other reasonable information as the corporation may require.
(c) A copy of the reports required under this section must also be sent concurrently to the speaker of the house, president of the senate, house finance chairperson, senate finance chairperson, and the general treasurer.
(d) On or before each September 30, the corporation shall publish a report on the small business development fund and provide such report to the speaker of the house of representatives, president of the senate, house finance chair, senate finance chair, and the general treasurer. The report shall contain information on the program implementation, investments made, fund performance, and to the extent practicable, track the economic impact of the investments completed.
History of Section.
P.L. 2019, ch. 88, art. 12, § 10.