§ 5-28-18-12 — "Eligible entity"; establishment of local investment pool; requirements of articles of incorporation or bylaws

Indiana § 5-28-18-12

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 28: INDIANA ECONOMIC DEVELOPMENT
• Ch. 18: Small Business Development Fund

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(a) As used in this section, "eligible entity"
means any partnership, unincorporated association, corporation, or
limited liability company, whether or not operated for profit, that is
established for the purpose of establishing a local investment pool.
(b) A local investment pool may be established only by an eligible
entity. A political subdivision may participate in the establishment of
an eligible entity but may not be the sole member of the eligible entity.
(c) The articles of incorporation or bylaws of the eligible entity, as
appropriate, must provide the following:
(1) The exclusive purpose of the eligible entity is to establish a
local investment pool to:
(A) attract private equity investment to provide grants, equity
investments, loans, and loan guarantees for the establishment
or operation of businesses in Indiana; and
(B) provide a low to moderate rate of return to investors in the
short term, with higher rates of return in the long term.
(2) The governing body of the eligible entity must include:
(A) persons who are qualified by professional background and
business experience to make sound financial and investment
decisions in the private sector; and
(B) representatives of nontraditional entrepreneurs.
(3) The eligible entity may receive funds from:
(A) equity investors;
(B) grants and loans from local units of government;
(C) grants and loans from the federal government;
(D) donations; and
(E) loans from the fund.

Legislative History

As added by P.L.4-2005, SEC.34.