90-9-312. Seed capital projects -- program goals. (1) The council may make a loan to a seed capital project if it determines that the project:
     (a) meets the loan criteria established in 90-9-311 and 90-9-313;
     (b) meets the goals established in subsection (2); and
     (c) involves development and commercialization of innovative agricultural products or processes.
     (2) The goals of this program are:
     (a) to provide a source of capital to the value-added agricultural-based sector of the state's economy;
     (b) to provide financing and follow-along management support for agricultural businesses in the state that are attempting to develop agricultural products or processes based on innovative technologies; and
     (c) to provide a liaison between agricultural businesses in the state and investors in an effort to enhance the pool of capital available to agricultural businesses in the state.
     (3) On approval of a seed capital project, a loan agreement must be entered into between the council and the loan recipient that:
     (a) creates a debt relationship between the parties;
     (b) provides for a financial return to the council;
     (c) provides economic development potential to the state; and
     (d) contains various provisions and terms as required by this chapter.

     History: En. Sec. 2, Ch. 284, L. 1989; amd. Sec. 9, Ch. 171, L. 2001.