§ 9 — Economic stabilization program

[ Text of section effective until February 18, 2025. Repealed by 2024, 238, Sec. 174. See 2024, 238, Sec. 331.]Section 9. (a) The GCC may establish an economic stabilization program for the following purposes:(1) To provide flexible high risk financing necessary to implement a change of ownership, a corporate restructuring or a turnaround plan for an economically viable, but troubled business which faces the likelihood of a large employment loss, plant closure or failure without such a change of ownership, corporate restructuring or turnaround plan. The program shall provide assistance to firms in specific mature industries for the purpose of technological investment or upgrading of management operations in order for the business to maintain future economic stability. The financial participation of the GCC shall aim to supplement private financial institutions and public economic development agencies when such institutions are unable to provide all the financing or bear all of the risk necessary to transfer ownership, restructure or turnaround a business in a situation where the business might otherwise fail or greatly reduce its employment.(2) To provide flexible high risk financing in connection with the start-up of employee-owned businesses or the implementation of employee-ownership projects. The financial participation of the GCC shall aim to supplement private financial institutions and public economic development agencies when such institutions are unable to provide all the financing or bear all of the risk necessary to start-up an employee-owned business or implement an employee-ownership project.(b) The GCC shall endeavor to direct at least 10 percent of the financing provided by the economic stabilization program to businesses that are employee-owned businesses in order to fulfill the purposes of this section.(c) The GCC may participate in projects under this section; provided, that, the corporation shall find and incorporate in the official records of the corporation that the project will be of a public benefit and:(1) when providing assistance in connection with the purchase of a troubled business, the directors shall determine and incorporate in the minutes of a meeting of the directors that:(i) the business is likely to experience a large loss of employment, plant closure, or failure without the loan financing or investment by corporation;(ii) the business within a specific mature industry requires assistance for the purpose of technological investment or upgrading of management operations in order for the business to maintain future economic stability;(iii) the business or person seeking to purchase the business has taken or shall take such actions as the directors deem necessary to ensure the business has a reasonable chance to continue as a successful business, including, but not limited to, changes in its operations, financing, or management and that said actions are included as a condition for financing by the corporation in the financing agreement; and(iv) the business or person seeking to purchase the business has made diligent efforts to obtain the financing necessary to continue its operations or transfer ownership of the business from private financial institutions and public economic development agencies and such financing is unavailable or has been offered on terms that would prevent the successful continuation or change in ownership of the business; or(2) when providing assistance in connection with an employee-owned business or an employee-ownership project, the directors shall determine and incorporate in the minutes of a meeting of the directors that:(i) the business or person seeking assistance has taken or shall take such actions as the directors deem necessary to ensure that the employee-ownership project has a reasonable chance to succeed; and(ii) except with respect to assistance for pre-feasibility and feasibility studies, that such business or person has made diligent efforts to obtain the financing necessary to institute or implement the employee-ownership project from private financial institutions and public economic development agencies, and such financing is unavailable or has been offered on terms that would prevent the successful institution or implementation of the project.