La. Admin. Code tit. 19, § VII-2911 - Application Procedure

A. The application shall contain, but not be limited to, an offering memorandum which includes, but is not limited to, the following:

1. name of fund, address (mailing and physical);

2. specify the amount of LEDC investment/ commitment requested;

3. specify the minimum and maximum amounts of non-LEDC capital to be raised if LEDC makes the requested investment/commitment;

4. specify applicant's projected timetable, with milestones for completion of the fund raising;

5. specify whether applicant anticipates receiving all of the committed capital investment at closing, or whether applicant plans a phase in. If a phase-in is planned, specify the proposed schedule. It is permissible to have different scenarios based on the actual amount of capital raised;

6. market-identify the proposed market of the applicant:

a. describe and discuss the types of businesses that the fund will finance. Discuss the extent to which the fund intends to specialize in certain industries, or if special circumstances will be addressed;

b. describe the size range of businesses that it is contemplated the fund will finance, with a general indication of where most of the focus is expected;

c. discuss the life cycle stage or stages of the companies which the fund will likely finance, with an indication of where most of the focus is contemplated, e.g., start-up, expansion;

d. discuss the geographic area in which the fund plans to focus. Specify the city or parish in which the fund's principal office will be located, and discuss intentions, if any, to establish any additional offices;

e. describe the types of financing instruments intended to be utilized for investments, e.g., debentures, notes, preferred stock, royalties, etc.;

7. management assistance-discuss the plans of the fund to provide management and/or technical assistance to companies for which the fund provides financing. Discuss the fund's plans for monitoring its financing, and enforcing provisions of investment agreements. Discuss how the fund plans to handle problem loans and investments;

8. idle funds-describe plans for the management of the idle funds in the fund;

9. realization of returns by investors-discuss longterm plans and strategies for providing a tangible return to the investors in the fund;

10. tax and accounting issues-discuss relevant tax and accounting issues for the fund;

11. management structure-describe the proposed management structure for the fund;

12. describe the proposed responsibilities of each of the members of the management team. If any will not be full time, describe their other activities;

13. describe the responsibilities of any management position for which a person has not been identified;

14. specify any other key people including any advisors, consultants, attorneys and accountants, and submit resumes and/or descriptions of firms. LEDC reserves the right to perform general and criminal background checks on these key people.

B. All applications under this program must be submitted to the Louisiana Economic Development Corporation, as directed by staff.

C. All applications received by LEDC will be reviewed by the LEDC staff; and the staff may request additional information beyond that which has been provided. After their receipt and review by the LEDC staff, the completed applications shall then be submitted to the next scheduled LEDC board meeting for its consideration of final approval.

Notes

La. Admin. Code tit. 19, § VII-2911

Promulgated by the Department of Economic Development, Office of Business Development and the Louisiana Economic Development Corporation, LR 481493 (6/1/2022).

AUTHORITY NOTE: Promulgated in accordance with R.S. 36:104, 36:108 and 51:2312