A. This article shall be known and may be cited as the "Virginia SmallBusiness Financing Act."
B. As used in this article, unless the context requires a different meaning:
"Business enterprise" means any (i) industry for the manufacturing,processing, assembling, storing, warehousing, servicing, distributing, orselling of any products of agriculture, mining, or industry or professionalservices; (ii) commercial enterprise making sales or providing services toindustries described in clause (i); (iii) enterprise for research anddevelopment, including but not limited to scientific laboratories; (iv)not-for-profit entity operating in the Commonwealth; (v) entity acquiring,constructing, improving, maintaining, or operating a qualified transportationfacility under the Public-Private Transportation Act of 1995 (§ 56-556 etseq.); or (vi) other business as will be in furtherance of the publicpurposes of this article.
"Cost," as applied to the eligible business, means the cost ofconstruction; the cost of acquisition of all lands, structures,rights-of-way, franchises, easements and other property rights and interests;the cost of demolishing, removing, rehabilitating or relocating any buildingsor structures on lands acquired, including the cost of acquiring any suchlands to which such buildings or structures may be moved, rehabilitated orrelocated; the cost of all labor, materials, machinery and equipment,financing charges, letter of credit or other credit enhancement fees,insurance premiums, interest on all bonds prior to and during construction oracquisition and, if deemed advisable by the Authority, for a period notexceeding one year after completion of such construction or acquisition, costof engineering, financial and legal services, plans, specifications, studies,surveys, estimates of cost and of revenues, commissions, guaranty fees, otherexpenses necessary or incident to determining the feasibility or practicalityof constructing, financing or operating a project of an eligible business;administrative expenses, provisions for working capital, reserves forinterest and for extensions, enlargements, additions, improvements andreplacements, and such other expenses as may be necessary or incidental tothe construction or acquisition of a project of an eligible business or thefinancing of such construction, acquisition or expansion and the placing of aproject of an eligible business in operation. Any obligation or expenseincurred by the Commonwealth or any agency thereof, with the approval of theAuthority for studies, surveys, borings, preparation of plans andspecifications or other work or materials in connection with the constructionor acquisition of a project of an eligible business may be regarded as a partof the cost of a project of an eligible business and may be reimbursed to theCommonwealth or any agency thereof out of the proceeds of the bonds issuedtherefor.
"Eligible business" means any person engaged in one or more businessenterprises in the Commonwealth that satisfies one or more of the followingrequirements: (i) is a for-profit enterprise that (a) has received $10million or less in annual gross income under generally accepted accountingprinciples for each of its last three fiscal years or lesser time period ifit has been in existence less than three years, (b) has fewer than 250employees, (c) has a net worth of $2 million or less, (d) exists for the solepurpose of developing or operating a qualified transportation facility underthe Public-Private Transportation Act of 1995 (§ 56-556 et seq.), or (e)meets such other satisfactory requirements as the Board shall determine fromtime to time if it finds and determines such person is in need of itsassistance or (ii) is a not-for-profit entity granted tax-exempt status under§ 501(c)(3) of the Internal Revenue Code and operating in the Commonwealth.
"Federal Act" means the Small Business Investment Act of 1958, 15 U.S.C. §661 et seq., as amended from time to time.
"Indenture" means any trust agreement, deed of trust, mortgage or othersecurity agreement under which bonds authorized pursuant to this articleshall be issued or secured.
"Internal Revenue Code" means the federal Internal Revenue Code of 1986, asamended.
"Lender" means any federal- or state-chartered bank, federal land bank,production credit association, bank for cooperatives, federal- orstate-chartered savings institution, building and loan association, smallbusiness investment company or any other financial institution qualifiedwithin the Commonwealth to originate and service loans, including but notlimited to insurance companies, credit unions, investment banking orbrokerage companies and mortgage loan companies.
"Loan" means any lease, loan agreement or sales contract as hereinafterdefined:
(i) "Lease" means any lease containing an option to purchase the project orprojects of the eligible business being financed for a nominal sum uponpayment in full, or provision thereof, of all bonds issued in connection withthe eligible business and all interest thereon and principal of and premium,if any, thereon and all other expenses in connection therewith.
(ii) "Loan agreement" means an agreement providing for a loan of proceedsfrom the sale and issuance of bonds by the Authority or by a lender withwhich the Authority has contracted to loan such proceeds to one or morecontracting parties to be used to pay the cost of one or more projects of aneligible business and providing for the repayment of such loan including butnot limited to all interest thereon, and principal of and premium, if any,thereon and all other expenses in connection therewith, by such contractingparty or parties and which may provide for such loans to be secured orevidenced by one or more notes, debentures, bonds or other secured orunsecured debt obligations of such contracting party or parties, delivered tothe Authority or to a trustee under an indenture pursuant to which the bondswere issued.
(iii) "Sales contract" means a contract providing for the sale of one ormore projects of an eligible business to one or more contracting parties andincludes but is not limited to a contract providing for payment of thepurchase price including but not limited to all interest thereon, andprincipal of and premium, if any, thereon and all other expenses inconnection therewith, in one or more installments. If the sales contractpermits title to a project being sold to an eligible business to pass to suchcontracting party or parties prior to payment in full of the entire purchaseprice, it also shall provide for such contracting party or parties to deliverto the Authority or to the trustee under the indenture pursuant to which thebonds were issued, one or more notes, debentures, bonds or other secured orunsecured debt obligations of such contracting party or parties providing fortimely payments of the purchase price thereof.
"Municipality" means any county or incorporated city or town in theCommonwealth.
"Preferred lender" means a bank that is subject to continuing supervisionand examination by state or federal chartering, licensing, or similarregulatory authority satisfactory to the Authority and that meets theeligibility requirements established by the Authority.
"Revenues" means any and all fees, rates, rentals, profits and receiptscollected by, payable to, or otherwise derived by, the Authority, and allother moneys and income of whatsoever kind or character collected by, payableto, or otherwise derived by, the Authority in connection with loans to anyeligible business in furtherance of the purposes of this article.
"Statewide Development Company" means the corporation chartered under thisarticle for purposes of qualification as a state development company as suchterm is defined in the Federal Act.
(1984, c. 749, §§ 9-197, 9-199; 1996, c. 77; 2001, c. 844; 2003, c. 339;2008, c. 744; 2009, c. 565.)
A. This article shall be known and may be cited as the "Virginia SmallBusiness Financing Act."
B. As used in this article, unless the context requires a different meaning:
"Business enterprise" means any (i) industry for the manufacturing,processing, assembling, storing, warehousing, servicing, distributing, orselling of any products of agriculture, mining, or industry or professionalservices; (ii) commercial enterprise making sales or providing services toindustries described in clause (i); (iii) enterprise for research anddevelopment, including but not limited to scientific laboratories; (iv)not-for-profit entity operating in the Commonwealth; (v) entity acquiring,constructing, improving, maintaining, or operating a qualified transportationfacility under the Public-Private Transportation Act of 1995 (§ 56-556 etseq.); or (vi) other business as will be in furtherance of the publicpurposes of this article.
"Cost," as applied to the eligible business, means the cost ofconstruction; the cost of acquisition of all lands, structures,rights-of-way, franchises, easements and other property rights and interests;the cost of demolishing, removing, rehabilitating or relocating any buildingsor structures on lands acquired, including the cost of acquiring any suchlands to which such buildings or structures may be moved, rehabilitated orrelocated; the cost of all labor, materials, machinery and equipment,financing charges, letter of credit or other credit enhancement fees,insurance premiums, interest on all bonds prior to and during construction oracquisition and, if deemed advisable by the Authority, for a period notexceeding one year after completion of such construction or acquisition, costof engineering, financial and legal services, plans, specifications, studies,surveys, estimates of cost and of revenues, commissions, guaranty fees, otherexpenses necessary or incident to determining the feasibility or practicalityof constructing, financing or operating a project of an eligible business;administrative expenses, provisions for working capital, reserves forinterest and for extensions, enlargements, additions, improvements andreplacements, and such other expenses as may be necessary or incidental tothe construction or acquisition of a project of an eligible business or thefinancing of such construction, acquisition or expansion and the placing of aproject of an eligible business in operation. Any obligation or expenseincurred by the Commonwealth or any agency thereof, with the approval of theAuthority for studies, surveys, borings, preparation of plans andspecifications or other work or materials in connection with the constructionor acquisition of a project of an eligible business may be regarded as a partof the cost of a project of an eligible business and may be reimbursed to theCommonwealth or any agency thereof out of the proceeds of the bonds issuedtherefor.
"Eligible business" means any person engaged in one or more businessenterprises in the Commonwealth that satisfies one or more of the followingrequirements: (i) is a for-profit enterprise that (a) has received $10million or less in annual gross income under generally accepted accountingprinciples for each of its last three fiscal years or lesser time period ifit has been in existence less than three years, (b) has fewer than 250employees, (c) has a net worth of $2 million or less, (d) exists for the solepurpose of developing or operating a qualified transportation facility underthe Public-Private Transportation Act of 1995 (§ 56-556 et seq.), or (e)meets such other satisfactory requirements as the Board shall determine fromtime to time if it finds and determines such person is in need of itsassistance or (ii) is a not-for-profit entity granted tax-exempt status under§ 501(c)(3) of the Internal Revenue Code and operating in the Commonwealth.
"Federal Act" means the Small Business Investment Act of 1958, 15 U.S.C. §661 et seq., as amended from time to time.
"Indenture" means any trust agreement, deed of trust, mortgage or othersecurity agreement under which bonds authorized pursuant to this articleshall be issued or secured.
"Internal Revenue Code" means the federal Internal Revenue Code of 1986, asamended.
"Lender" means any federal- or state-chartered bank, federal land bank,production credit association, bank for cooperatives, federal- orstate-chartered savings institution, building and loan association, smallbusiness investment company or any other financial institution qualifiedwithin the Commonwealth to originate and service loans, including but notlimited to insurance companies, credit unions, investment banking orbrokerage companies and mortgage loan companies.
"Loan" means any lease, loan agreement or sales contract as hereinafterdefined:
(i) "Lease" means any lease containing an option to purchase the project orprojects of the eligible business being financed for a nominal sum uponpayment in full, or provision thereof, of all bonds issued in connection withthe eligible business and all interest thereon and principal of and premium,if any, thereon and all other expenses in connection therewith.
(ii) "Loan agreement" means an agreement providing for a loan of proceedsfrom the sale and issuance of bonds by the Authority or by a lender withwhich the Authority has contracted to loan such proceeds to one or morecontracting parties to be used to pay the cost of one or more projects of aneligible business and providing for the repayment of such loan including butnot limited to all interest thereon, and principal of and premium, if any,thereon and all other expenses in connection therewith, by such contractingparty or parties and which may provide for such loans to be secured orevidenced by one or more notes, debentures, bonds or other secured orunsecured debt obligations of such contracting party or parties, delivered tothe Authority or to a trustee under an indenture pursuant to which the bondswere issued.
(iii) "Sales contract" means a contract providing for the sale of one ormore projects of an eligible business to one or more contracting parties andincludes but is not limited to a contract providing for payment of thepurchase price including but not limited to all interest thereon, andprincipal of and premium, if any, thereon and all other expenses inconnection therewith, in one or more installments. If the sales contractpermits title to a project being sold to an eligible business to pass to suchcontracting party or parties prior to payment in full of the entire purchaseprice, it also shall provide for such contracting party or parties to deliverto the Authority or to the trustee under the indenture pursuant to which thebonds were issued, one or more notes, debentures, bonds or other secured orunsecured debt obligations of such contracting party or parties providing fortimely payments of the purchase price thereof.
"Municipality" means any county or incorporated city or town in theCommonwealth.
"Preferred lender" means a bank that is subject to continuing supervisionand examination by state or federal chartering, licensing, or similarregulatory authority satisfactory to the Authority and that meets theeligibility requirements established by the Authority.
"Revenues" means any and all fees, rates, rentals, profits and receiptscollected by, payable to, or otherwise derived by, the Authority, and allother moneys and income of whatsoever kind or character collected by, payableto, or otherwise derived by, the Authority in connection with loans to anyeligible business in furtherance of the purposes of this article.
"Statewide Development Company" means the corporation chartered under thisarticle for purposes of qualification as a state development company as suchterm is defined in the Federal Act.
(1984, c. 749, §§ 9-197, 9-199; 1996, c. 77; 2001, c. 844; 2003, c. 339;2008, c. 744; 2009, c. 565.)
A. This article shall be known and may be cited as the "Virginia SmallBusiness Financing Act."
B. As used in this article, unless the context requires a different meaning:
"Business enterprise" means any (i) industry for the manufacturing,processing, assembling, storing, warehousing, servicing, distributing, orselling of any products of agriculture, mining, or industry or professionalservices; (ii) commercial enterprise making sales or providing services toindustries described in clause (i); (iii) enterprise for research anddevelopment, including but not limited to scientific laboratories; (iv)not-for-profit entity operating in the Commonwealth; (v) entity acquiring,constructing, improving, maintaining, or operating a qualified transportationfacility under the Public-Private Transportation Act of 1995 (§ 56-556 etseq.); or (vi) other business as will be in furtherance of the publicpurposes of this article.
"Cost," as applied to the eligible business, means the cost ofconstruction; the cost of acquisition of all lands, structures,rights-of-way, franchises, easements and other property rights and interests;the cost of demolishing, removing, rehabilitating or relocating any buildingsor structures on lands acquired, including the cost of acquiring any suchlands to which such buildings or structures may be moved, rehabilitated orrelocated; the cost of all labor, materials, machinery and equipment,financing charges, letter of credit or other credit enhancement fees,insurance premiums, interest on all bonds prior to and during construction oracquisition and, if deemed advisable by the Authority, for a period notexceeding one year after completion of such construction or acquisition, costof engineering, financial and legal services, plans, specifications, studies,surveys, estimates of cost and of revenues, commissions, guaranty fees, otherexpenses necessary or incident to determining the feasibility or practicalityof constructing, financing or operating a project of an eligible business;administrative expenses, provisions for working capital, reserves forinterest and for extensions, enlargements, additions, improvements andreplacements, and such other expenses as may be necessary or incidental tothe construction or acquisition of a project of an eligible business or thefinancing of such construction, acquisition or expansion and the placing of aproject of an eligible business in operation. Any obligation or expenseincurred by the Commonwealth or any agency thereof, with the approval of theAuthority for studies, surveys, borings, preparation of plans andspecifications or other work or materials in connection with the constructionor acquisition of a project of an eligible business may be regarded as a partof the cost of a project of an eligible business and may be reimbursed to theCommonwealth or any agency thereof out of the proceeds of the bonds issuedtherefor.
"Eligible business" means any person engaged in one or more businessenterprises in the Commonwealth that satisfies one or more of the followingrequirements: (i) is a for-profit enterprise that (a) has received $10million or less in annual gross income under generally accepted accountingprinciples for each of its last three fiscal years or lesser time period ifit has been in existence less than three years, (b) has fewer than 250employees, (c) has a net worth of $2 million or less, (d) exists for the solepurpose of developing or operating a qualified transportation facility underthe Public-Private Transportation Act of 1995 (§ 56-556 et seq.), or (e)meets such other satisfactory requirements as the Board shall determine fromtime to time if it finds and determines such person is in need of itsassistance or (ii) is a not-for-profit entity granted tax-exempt status under§ 501(c)(3) of the Internal Revenue Code and operating in the Commonwealth.
"Federal Act" means the Small Business Investment Act of 1958, 15 U.S.C. §661 et seq., as amended from time to time.
"Indenture" means any trust agreement, deed of trust, mortgage or othersecurity agreement under which bonds authorized pursuant to this articleshall be issued or secured.
"Internal Revenue Code" means the federal Internal Revenue Code of 1986, asamended.
"Lender" means any federal- or state-chartered bank, federal land bank,production credit association, bank for cooperatives, federal- orstate-chartered savings institution, building and loan association, smallbusiness investment company or any other financial institution qualifiedwithin the Commonwealth to originate and service loans, including but notlimited to insurance companies, credit unions, investment banking orbrokerage companies and mortgage loan companies.
"Loan" means any lease, loan agreement or sales contract as hereinafterdefined:
(i) "Lease" means any lease containing an option to purchase the project orprojects of the eligible business being financed for a nominal sum uponpayment in full, or provision thereof, of all bonds issued in connection withthe eligible business and all interest thereon and principal of and premium,if any, thereon and all other expenses in connection therewith.
(ii) "Loan agreement" means an agreement providing for a loan of proceedsfrom the sale and issuance of bonds by the Authority or by a lender withwhich the Authority has contracted to loan such proceeds to one or morecontracting parties to be used to pay the cost of one or more projects of aneligible business and providing for the repayment of such loan including butnot limited to all interest thereon, and principal of and premium, if any,thereon and all other expenses in connection therewith, by such contractingparty or parties and which may provide for such loans to be secured orevidenced by one or more notes, debentures, bonds or other secured orunsecured debt obligations of such contracting party or parties, delivered tothe Authority or to a trustee under an indenture pursuant to which the bondswere issued.
(iii) "Sales contract" means a contract providing for the sale of one ormore projects of an eligible business to one or more contracting parties andincludes but is not limited to a contract providing for payment of thepurchase price including but not limited to all interest thereon, andprincipal of and premium, if any, thereon and all other expenses inconnection therewith, in one or more installments. If the sales contractpermits title to a project being sold to an eligible business to pass to suchcontracting party or parties prior to payment in full of the entire purchaseprice, it also shall provide for such contracting party or parties to deliverto the Authority or to the trustee under the indenture pursuant to which thebonds were issued, one or more notes, debentures, bonds or other secured orunsecured debt obligations of such contracting party or parties providing fortimely payments of the purchase price thereof.
"Municipality" means any county or incorporated city or town in theCommonwealth.
"Preferred lender" means a bank that is subject to continuing supervisionand examination by state or federal chartering, licensing, or similarregulatory authority satisfactory to the Authority and that meets theeligibility requirements established by the Authority.
"Revenues" means any and all fees, rates, rentals, profits and receiptscollected by, payable to, or otherwise derived by, the Authority, and allother moneys and income of whatsoever kind or character collected by, payableto, or otherwise derived by, the Authority in connection with loans to anyeligible business in furtherance of the purposes of this article.
"Statewide Development Company" means the corporation chartered under thisarticle for purposes of qualification as a state development company as suchterm is defined in the Federal Act.
(1984, c. 749, §§ 9-197, 9-199; 1996, c. 77; 2001, c. 844; 2003, c. 339;2008, c. 744; 2009, c. 565.)
