2010 Pennsylvania Code
Title 64 - PUBLIC AUTHORITIES AND QUASI-PUBLIC CORPORATIONS
Chapter 15 - Commonwealth Financing Authority
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.