90-8-201. Certification of Montana capital companies and small business investment capital companies. (1) The department shall certify Montana small business investment capital companies, 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 a 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.
     (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 the 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 certified development companies, 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 a qualified Montana small business investment capital company.
     (5) To be eligible for certification under this section as a Montana small business investment capital company, the applicant shall commit to:
     (a) accumulating private capital with the intention of being licensed as a small business investment corporation by the United States small business administration as provided in Title III of the Small Business Investment Act of 1958, as amended, and as implemented under 13 CFR 107;
     (b) targeting 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, small business incubators, community development block grant programs, and projects emerging from economic development programs of Montana certified regional development corporations, with the objective of providing significant investment opportunities in an area where economic development capital is limited;
     (c) considering investment opportunities originating in any Montana county; and
     (d) adopting 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; amd. Sec. 12, Ch. 549, L. 1997; amd. Sec. 4, Ch. 410, L. 1999; amd. Sec. 5, Ch. 351, L. 2003.