This text of Louisiana § 51:2402 (Small Business Innovation Recruitment Fund; purpose; program administration) is published on Counsel Stack Legal Research, covering Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
§2402. Small Business Innovation Recruitment Fund; purpose; program administration
A. There is hereby created in the state treasury, as a special fund, the "Small Business
Innovation Recruitment Fund", hereinafter referred to as the "fund".
B.
(1)The monies in the fund shall be used as an economic development incentive
to recruit out-of-state small businesses that have received Phase II Small Business Innovation
Research, hereinafter referred to as "SBIR", or Phase II Small Business Technology Transfer,
hereinafter referred to as "STTR", federal grants to move to Louisiana.
(2)In order for a business to be considered a "small business" for purposes of this
Section, the business shall qualify as small according to the United States Small Business
Administration's industry size standards.
C
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§2402. Small Business Innovation Recruitment Fund; purpose; program administration
A. There is hereby created in the state treasury, as a special fund, the "Small Business
Innovation Recruitment Fund", hereinafter referred to as the "fund".
B.(1) The monies in the fund shall be used as an economic development incentive
to recruit out-of-state small businesses that have received Phase II Small Business Innovation
Research, hereinafter referred to as "SBIR", or Phase II Small Business Technology Transfer,
hereinafter referred to as "STTR", federal grants to move to Louisiana.
(2) In order for a business to be considered a "small business" for purposes of this
Section, the business shall qualify as small according to the United States Small Business
Administration's industry size standards.
C. After compliance with the requirements of Article VII, Section 9(B) of the
Constitution of Louisiana relative to the Bond Security and Redemption Fund, all monies
received for the purpose of the fund shall be deposited into the fund.
D. Monies in the fund shall be invested in the same manner as monies in the general
fund. Interest earned on investment of monies in the fund shall be credited to the fund.
Unexpended and unencumbered monies in the fund at the end of the fiscal year shall remain
in the fund.
E. Subject to appropriation and the provisions of this Section, monies in the fund
shall be used by Louisiana Economic Development, hereinafter referred to in this Section as
the "department", for awarding grants to selected applicants. The department shall establish
criteria for grant eligibility, provide for an application process, and select eligible business
applicants to receive monies from the fund, based upon nominations of eligible small
businesses recommended by the Regional Economic Alliance of Louisiana, which represents
sixty-four parishes of the state.
F.(1) Up to five hundred thousand dollars shall be annually disbursed from the fund
to eligible applicants in the form of grants. Any grant received pursuant to this Section shall
not exceed one hundred thousand dollars per applicant. The grant awards provided pursuant
to this Section shall be divided into three equal amounts and disbursed to the selected
applicants over a period of three consecutive years.
(2) In Fiscal Year 2025-2026, in addition to any monies disbursed from the fund
pursuant to Paragraph (1) of this Subsection, an amount of up to one hundred five thousand
dollars of fund monies shall be allocated to the department for administrative costs.
G. An applicant that meets all of the following criteria shall be eligible for a grant
provided for in this Section:
(1) The applicant shall have received Phase II SBIR or STTR grant funding within
the two years immediately preceding submission of the application.
(2) The applicant shall have generated sales and revenue and shall provide
documentation proving such.
(3) The applicant shall have produced commercial products or conducted commercial
services and shall provide documentation proving such.
H. Within six months of approval by the department, an applicant selected to receive
grant monies shall provide documentation that the applicant business has relocated to
Louisiana. If the selected applicant fails to relocate or provide documentation of such, the
grant shall be forfeited, and the money shall be disbursed to another applicant.