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.
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.
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
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.
LED-Louisiana Department of Economic
Development.
LEDC-Louisiana Economic Development
Corporation, as known as Corporation.
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).
Risk Investment-an investment that may
provide equity through the purchase of common stock, preferred stocks,
partnership rights or any other equity investment. Additionally it may mean
debt positions, which may act as equity or have equity features such as
subordinated debt, debentures or other such instruments used in conjunction
with features intended to yield significant capital appreciation.
Socially and Economically Disadvantaged
Individuals (
SEDI)
Owned
Business-for the purposes of this program:
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.
Valuation of Investment Fund-the value of
any monies invest or otherwise used as risk capital in businesses plus the
unexpended monies available for investment or used as risk capital.
Venture Capital Fund-a fund that makes and
manages a portfolio of investments in individual companies or businesses. also
referred to herein as the applicant organization;
Very Small Business (VSB)-a business which
employees 10 or less employees, including independent contractors and sole
proprietors.
