90-8-201. Certification of Montana capital companies -- certification of a Montana small business investment capital company. (1) The department shall certify one Montana small business investment capital company, and from time to time the department shall certify Montana capital companies. A company seeking to be certified as a Montana capital company or as the Montana small business investment capital company shall make written application to the department on forms provided by the department. The application must contain the information required by 90-8-204 and other information that the department requires. The application and certificate must specify the level of capitalization that the company expects to qualify for the tax credits provided for in 90-8-202.
     (2) The application must show that the applicant's purpose is to increase the general economic welfare of the state of Montana by:
     (a) making investment capital available to businesses in Montana; and
     (b) allowing for investment of up to 25% of its capital base in businesses outside Montana if there is a substantial likelihood that such investment will produce a qualified investment in Montana.
     (3) Certifiable applicants include but are not limited to local and community development corporations, small business administration 503 corporations, and small business investment companies.
     (4) Certification is a prerequisite to and must be completed before seeking designation as a qualified capital company or as the qualified Montana small business investment capital company.
     (5) To be eligible for certification under this section as the Montana small business investment capital company, the applicant shall commit to:
     (a) utilize the tax credits to accumulate private capital with the intention of being designated a small business investment corporation by the United States small business administration as provided in Title III of the Small Business Act of 1958, as amended, and as implemented under 13 CFR 107;
     (b) target its investments as a small business investment capital company toward commercialization projects emerging from centers of excellence and entrepreneurship, federal laboratories, the federal small business innovative research program, the federal cooperative research and development agreement program, Montana university system research and development, the Montana board of science and technology development (second stage), small business incubators, community development block grant programs, and projects emerging from economic development programs of Montana certified communities with the objective of providing significant investment opportunities in an area where economic development capital is limited;
     (c) consider investment opportunities originating in any Montana county; and
     (d) adopt investment guidelines that ensure that not less than 10% of its available capital is invested in counties with populations of 20,000 or less.

     History: En. Sec. 5, Ch. 554, L. 1983; amd. Sec. 18, Ch. 554, L. 1983; amd. Sec. 2, Ch. 583, L. 1987; amd. Sec. 3, Ch. 708, L. 1989; amd. Sec. 4, Ch. 263, L. 1991; amd. Secs. 3, 13, Ch. 576, L. 1991.