Regulations of Connecticut State Agencies
To be eligible for an Interest Rate Subsidy, a Program of Interest Rate Subsidies or a Direct Loan:
(a) The Employee Group:
(1) must include fifty percent (50%) or more of all employees of the Business being acquired by the Employee Group immediately following the purchase; and
(2) must own more than fifty (50%) of the outstanding equity interest in the Business being acquired by the Employee Group immediately following the purchase; and
(3) must demonstrate to the satisfaction of the Commissioner:
(A) the financial viability of the Business;
(B) that the acquisition of the Business will tend to maintain or provide gainful employment, maintain or increase the tax base of the economy or maintain or diversify industry in the State of Connecticut; and
(C) that the proceeds of any Direct Loan or Loan for which an Interest Subsidy is sought will not essentially be used to refinance interests held in the Business prior to the acquisition by the Employee Group, its members or related parties thereto.
(b) The Loan or Loans for which an Interest Rate Subsidy is sought must be Eligible Loan(s), provided however that the proceeds of the Eligible Loans are used for acquisition costs or expenses related to the proposed purchase of such Business.
(c) The proceeds of any Direct Loan must be used for the purpose of the initial purchase of the Business, including without limitation, initial working capital requirements of the Employee Group.
(Effective April 27, 1987)