7866432.2-1616Virginia Decodedhttps://vacode.org2016Administration Of GovernmentOrganization Of State GovernmentState Agencies Related To The General Operation Of GovernmentDepartment Of Small Business And Supplier DiversitySmall Business Jobs Grant Fund Program And Small Business Investment Grant FundCreation, administration, and management of the Small Business Investment Grant Fund2013, c. 482; 2016, c. 520.http://law.lis.virginia.gov/vacode/2.2-1616/2.2-4000Short title; purpose/2.2-4000/58.1-320Imposition of tax/58.1-320/58.1-339.4Qualified equity and subordinated debt investments tax credit/58.1-339.4/58.1-390.1Definitions/58.1-390.1//2.2-1616/2.2/I/C/16.1/2/2.2-1616From such funds as may be appropriated by the General Assembly and any gifts, grants, or donations from public or private sources, there is hereby created in the state treasury a special nonreverting, permanent fund to be known as the Small Business Investment Grant Fund, to be administered by the Department. The Fund shall be established on the books of the Comptroller. Interest earned on moneys in the Fund shall remain in the Fund and be credited to it. Any moneys remaining in the Fund at the end of each fiscal year, including interest thereon, shall not revert to the general fund but shall remain in the Fund. Expenditures and disbursements from the Fund, which shall be in the form of grants pursuant to this section, shall be made by the State Treasurer on warrants issued by the Comptroller upon written request bearing the signature of the Director. Grants from the Fund shall only be made to applications pursuant to this section.sectionBB1An eligible investor that makes a qualified investment in a small business on or after July 1, 2012, but prior to January 1, 2019, that has been certified by the Authority pursuant to subsection D shall be eligible for a grant in an amount equal to 10 percent of the qualified investment. An eligible investor may apply for a grant for each qualified investment that is made to one or more small businesses not to exceed a total grant allocation from the Fund of $ 250,000 per eligible investor.sectionCC1A small business shall apply with the Authority to receive qualified investments eligible for the grant pursuant to this section and shall provide to the Authority such information as the Authority deems necessary to demonstrate that it meets the qualifications set forth in subsection A.sectionDD1Any eligible investor applying for a grant pursuant to this section shall submit an application to the Authority. Alternatively, a small business may apply to the Authority on behalf of an eligible investor. The Authority shall determine the amount of the grant allowable to the eligible investor for the year.sectionEE1Unless the eligible investor transfers the equity received in connection with a qualified investment as a result of (i) the liquidation of the small business issuing such equity; (ii) the merger, consolidation, or other acquisition of such business with or by a party not affiliated with such business; or (iii) the death of the eligible investor, any eligible investor that fails to hold such equity for at least two years shall forfeit the grant and shall pay the Authority interest on the total allowed grant at the rate of one percent per month, compounded monthly, from the date the grant was awarded to the taxpayer. The Authority shall deposit any amounts received under this subsection into the general fund of the Commonwealth.sectionFF1Grants shall be issued in the order that each completed eligible application is received by the Authority. In the event that the amount of eligible grants requested in a fiscal year exceeds the funds available in the Fund, such grants shall be paid in the next fiscal year in which funds are available.sectionGG1An eligible investor shall not be awarded a grant pursuant to this section for any investment in a small business for which the eligible investor has been allowed a tax credit pursuant to § 58.1-339.4.sectionHH1The Authority shall establish policies and procedures relating to (i) the certification of small businesses, (ii) the application for grants, and (iii) the recapture of grant awards claimed with interest in the event that the qualified investment is not held for the requisite period set forth in subsection F. Such policies and procedures shall be exempt from the Administrative Process Act (§ 2.2-4000 et seq.).sectionII1