95-592 C.M.R. ch. 701, § 8 - TERMS AND CONDITIONS OF INVESTMENTS

Current through 2022-14, April 6, 2022

A. Initial investments, subsequent investments, and Side Fund Investments shall be made in an amount which is reasonable as shown by materials submitted by the qualified small business.
B. Investments from the Program Funds may be in a form determined by the Board in recognition of the degree of risk of the proposal. The investment agreement may require royalties or additional payments based on sales, net cash flow or other financial measures, or rights to equity in the enterprise in the form of debentures, warrants, stock ownership or similar rights.
C. With respect to investments from the SEGF, the qualifying small business must provide the Board satisfactory evidence that it has obtained other cash funds in an amount at least equal to the investment. The matching cash may be in the form of debt or equity, but must be at risk in the qualifying small business for a term at least equal to the Board's investment, must be invested no later than the date of the Board's investment and may be invested prior to the Board's investment as approved by the Board. If the Board approves an investment made prior to the Board's investment as the matching investment, it must remain at risk in the recipient for at least as long as the Board's investment. Side Fund investments may, in the discretion of the Board, count as matching investments to investments from the SEGF.
D. The Board may make incremental investments to the recipient based on specific events or conditions established at the time of approval.
E. The recipient will be required to report to the Board at least quarterly on each of the following performance measures:
1. Financial performance;
2. Job creation;
3. Technological progress;
4. Market progress; and
5. Any other measures the Board requires.
F. The recipient may not use the investment to make distributions to or for the benefit of an owner of the recipient or a related entity.
G. No member, employee or agent of the Board may disclose to any person the contents of any business or marketing plan for any application, any financial statements or reports pertaining to any recipient, or any other records which may be confidential pursuant to 1 M.R.S.A. §401 and following and 10 M.R.S.A. §391 or any successor or similar provisions.

Notes

95-592 C.M.R. ch. 701, § 8

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