Current through Reg. 49, No. 38; September 20, 2024
(a) To apply for financing from the fund, an
applicant shall submit to the bank:
(1) an
application for financing on a form prescribed by the bank; and
(2) an application fee as prescribed by the
bank, payable to the Office of the Governor, Texas Economic Development
Bank.
(b) The
application must include a business plan containing the information required by
the bank. All confidential and proprietary information shall be identified by
the applicant in the business plan. This information must be treated as
confidential as provided by the exception set forth in Government Code, Section
RSA
489.215, and other law. The business plan
will include at a minimum, as applicable, information regarding:
(1) an executive summary which does not
contain any confidential or proprietary information and is no longer than two
typewritten, double spaced pages;
(2) the prior three years audited financial
statements, as applicable, and projected financial statements, including loan
repayment. The financial documents must include the applicant's income
statement, balance sheet and cash flow statement;
(3) the applicant's present markets and
market prospects;
(4) a discussion
of the economic and other benefits to the State of Texas, including the
anticipated effects on the emerging technology industry cluster(s) in which the
applicant belongs;
(5) the
background and integrity of the applicant's management;
(6) a statement of the feasibility of the
product for which financing is requested, including the state of development of
any product to be developed and the proposed schedule of its
commercialization;
(7) if
applicable, documentation of attempts to obtain private financing;
(8) a financial plan that shows how loan
proceeds will generate income to repay the loan;
(9) use of funds and business
model;
(10) the name, street
address, mailing address, telephone number, fax number and electronic mail
address for the business and the business' authorized officer with a signed
statement from each, as applicable, that the contents of the application are
true and correct to their best knowledge and belief; and
(11) authorization of the applicant's board
of directors to participate in the program.
(c) In determining which products and
businesses are eligible for financing, the bank shall consider criteria, which
includes but is not limited to, the following:
(1) the product or business for which
financing is requested is economically sound;
(2) there is a reasonable expectation that
the product or business will be successful;
(3) the product or business will create or
preserve jobs and otherwise benefit the economy of the state;
(4) the applicant has the management
resources and other funding to complete the project;
(5) financing is necessary because full
financing is unavailable in traditional capital markets or credit has been
offered on terms that would preclude the success of the project;
(6) there is reasonable assurance that the
potential revenues to be derived from the sale of the product will be
sufficient to repay any financing approved by the bank;
(7) the extent to which the product or
business will leverage non-state funds;
(8) the number of jobs to be created or
retained in the state; and
(9)
availability of program funds.
(d) In determining eligible products and
businesses, the bank shall give special preference to products or businesses in
the areas of semiconductors, nanotechnology, biotechnology, biomedicine, and
such other emerging technologies or areas that have the greatest likelihood of
commercial success, job creation, and job retention in this state.
(e) The bank shall give further preference to
providing financing to projects or businesses that are:
(1) grantees under the small business
innovation research program established under
RSA 638,
as amended;
(2) companies formed in
this state to commercialize research funded at least in part with state
funds;
(3) applicants that have
acquired other sources of financing;
(4) companies formed in this state and
receiving assistance from designated state small business development centers;
or
(5) applicants who are residents
of this state doing business in this state and performing financed activities
predominantly in this state.
(f) After considering the application and all
other information it considers relevant, the bank shall approve or deny the
application and promptly notify the applicant of its decision.
(g) Application and closing fee. The Bank
shall charge an application fee of $500.00 for all applications. In addition,
successful applicants may be required to pay, upon financing by the bank, a
closing fee.
