164.6021 Purposes and administration of Kentucky enterprise fund.
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/ky/chapter-164/164-6021A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1)The Cabinet for Economic Development shall manage the Kentucky enterprise fund
to provide capital to small and medium-size, Kentucky-based companies to
undertake feasibility, concept development, research and development, or
commercialization work.
(2)The purpose of the Kentucky enterprise fund is to:
(a)Accelerate knowledge transfer and technological innovation, improve
economic competitiveness, and spur economic growth in Kentucky-based
companies;
(b)Support feasibility, concept development, research and development, or
commercialization activities that have clear potential to lead to commercially
successful products, processes, or services within a reasonable period of time;
(c)Stimulate growth-oriented enterprises within the Commonwealth;
(d)Encourage partnerships and collaborative projects between private enterprises,
Kentucky's colleges and universities, and research organizations;
(e)Promote research and development and commercialization activities that are
market-oriented; and
(f)Support small and medium-sized companies.
(3)The Kentucky enterprise fund shall be used to fund qualified companies in
accordance with this section as follows:
(a)Grants of up to fifty thousand dollars ($50,000) for companies exploring the
feasibility of technology commercialization or projects related to feasibility
studies, such as incubator and accelerator programs;
(b)Funding of up to two hundred fifty thousand dollars ($250,000) for companies
in the concept development phase of technology commercialization;
(c)Funding of up to five hundred thousand dollars ($500,000) for companies
advancing and promoting the program goals, as outlined in subsection
(2)of
this section; and
(d)For new investments made on or after July 1, 2021, no qualified company can
receive a total investment from the fund in excess of up to five hundred
thousand dollars ($500,000).
(4)Beginning July 1, 2021, the cabinet shall allocate at least twenty percent (20%) of
the annual allotment of funds for the Kentucky enterprise fund to qualified
companies located in rural or enhanced incentive counties, as certified under KRS
154.32-050, and at least twenty percent (20%) of the annual allotment of funds to
qualified companies located in Opportunity Zones, as designated by the
Commonwealth and certified by the Secretary of the United States Treasury.
(5)For all funding totaling more than thirty thousand dollars ($30,000), the science and
technology organization or any entity designated by the executive director of the
Office of Entrepreneurship and Innovation shall receive an equity interest in the
qualified company, such as a general or limited partnership interest, limited liability
company interest, common or preferred stock with or without voting rights and
without regard to seniority position, forms of subordinate or convertible unsecured debt, or both, with warrants, rights, or other means of equity conversion attached, a near equity interest such as a simple agreement for future equity or "SAFE agreement", or other convertible debt instruments that are determined to qualify as an adequate investment interest by the executive director of the Office of Entrepreneurship and Innovation.