1557 - New Pennsylvania Venture Capital Investment Program.
§ 1557. New Pennsylvania Venture Capital Investment Program. (a) Establishment.--There is established a program to be known as the New Pennsylvania Venture Capital Investment Program. The program shall provide loans to venture capital partnerships for investment in Pennsylvania-related companies. The nature of the investments shall be equity or convertible debt. (b) Applications.--A venture capital partnership seeking to make investments in Pennsylvania-related companies may submit an application for a loan to the authority. The application must be on the form required by the board and shall include or demonstrate all of the following: (1) The applicant's name. (2) The address of the applicant and a list of all offices of the applicant located in this Commonwealth. (3) The applicant's business plan, which may be a private placement memorandum pursuant to 17 CFR §§ 230.501 through 230.508 (relating to Regulation D--rules governing the limited offer and sale of securities without registration under the Securities Act of 1933). (4) A history of the applicant's development, operations, accomplishments and historical investment returns, including past performance of principals and partners. (5) A description of the intended industry sectors and stage of investment in which the applicant will invest. (6) A description of the applicant's current and proposed relationship with organizations in this Commonwealth that foster economic development. (7) Any other information required by the board. (c) Application review.--The board shall review the application to determine all of the following: (1) If the applicant has invested in Pennsylvania- related companies in the past. (2) If the applicant has demonstrated strong relationships with organizations in this Commonwealth which foster economic development. (3) That the applicant has demonstrated a satisfactory investment performance record. (4) That the applicant has demonstrated that it can and will raise and invest in Pennsylvania-related companies at least $1 of nonpublic equity for every $1 of loan funds received by the applicant under this section. (5) That the applicant has or will open an office in Pennsylvania staffed with at least one senior-level partner and will maintain such office for the duration of the loan. (6) That the applicant complied with all other criteria established by the board. (d) Approval of the applications.-- (1) Upon being satisfied that all requirements have been met, the board may approve the application, and, if approved, the authority shall award a loan. The board shall establish the term of repayment of principal and payment of interest and other return to the authority and all other terms and conditions of the loan consistent with the provisions of this section. (2) In approving applications, the board shall consider whether an applicant has had an office in this Commonwealth for at least the 12 months immediately preceding the date of the applicant's application. (e) Limitation.-- (1) All loans awarded to venture capital partnerships under this section and the matching nonpublic equity shall be invested in Pennsylvania-related companies. (2) At least 50% of the funds made available for the program under this section shall be used to make loans for investments in Pennsylvania-related companies located in Pennsylvania counties which are outside the Philadelphia Metropolitan Statistical Area and which have a population of 1,000,000 or less, based on the 2000 Decennial Census of the Bureau of the Census. (3) At least 50% of the funds made available for the program under this section shall be used to make loans to venture capital partnerships which have primary offices staffed with at least one senior-level partner located in Pennsylvania counties which are outside the Philadelphia Metropolitan Statistical Area and which have a population of 1,000,000 or less, based on the 2000 Decennial Census of the Bureau of the Census. Cross References. Section 1557 is referred to in section 1543 of this title.