Utah Rural Jobs Act
DISCLAIMER: This is a brief summary of the overall requirements and parts of the Utah Rural Jobs Act. The lists, requirements, criteria, and general information provided by this summary is not complete or exclusive. To view all requirements required by law please see the following link:
PURPOSE OF THE
UTAH RURAL JOBS ACT:
Rural Jobs Act enables an eligible small business located in a rural county to
expand and create high wage jobs by providing flexible and affordable capital
to small businesses in these areas.
has three types of participants: 1) Investors who provide capital investments
to a Rural Investment Company, 2) Rural Investment Companies who raise the
funds from investors to be invested in eligible small businesses; and 3)
Eligible small businesses who may receive up to $5,000,000 in capital for
business development and expansion needs. The program authorizes $42,000,000 of
investment authority to Rural Investment Companies.
Rural Investment Company:
participate in the Utah Rural Jobs Act program as a Rural Investment Company
(meaning you will raise a fund to invest into eligible small businesses)—the
to the State starting November 1st (applications are treated on first
come first served basis and must state the portion of the $42,000,000
investment authority being sought).
the application demonstrate:
§ A federal designation as a Small
Business Investment Corporation from the Small Business Association or a Rural
Business Investment Corporation designation from the Department of Agriculture.
§ Before the application submission
date, evidence that at least $50,000,000 of investments have been made to
nonpublic companies located in counties throughout the U.S. with a population
of less than 50,000; and
§ You have investors ready to make
investments into the overall fund including the amount of each investment
committed via signed affidavits. Please note the amount of contributions being
made by investors cannot be more than 58% of the total amount of investment
authority (fund) being sought.
approved the RIC must
§ Raise the total investment authority
authorized by the state within 65 days.
§ Invest 100% of its investment
authority within three years of raising the total investment authority.
§ Maintain 100% of its investment
authority for 7 years
§ Must invest at least 70% of total
investment authority into eligible small business in Rural Counties, which is
any county in Utah EXCEPT: Weber, Davis, Salt Lake, Utah, Tooele, Cache, and Washington,
and Summit counties.
§ Keep all investments into eligible
small businesses to a total of $5,000,000 or less
§ Pay an equal portion of a $50,000
annual fee split evenly among all active Rural Investment Companies.
be an investor (claimant) that will invest in a Rural Investment Company and
receive a tax credit, an investor must:
a resident or nonresident person that has state taxable income
an investor makes an investment (credit-eligible contribution) to a Rural
Investment Company, The investor:
receive 100% of their investment in the form of a non-refundable tax credit.
§ The tax credit will be issued only if
the Rural Investment Company complies with all program criteria and
§ The tax credit is issued over a 7
year period from the time the Rural Investment Company has raised its total
is issued from years 1-3
is issued each year in years 4-7
Eligible Small Businesses
be a small business that receives a capital investment from a Rural Investment
Company, a small business must:
located in a Rural County in Utah (this is any county EXCEPT: Weber, Davis,
Salt Lake, Utah, Tooele, Cache, and Washington, and Summit counties)
the time the investment is made:
§ Have fewer than 150 employees
§ Have less than $10,000,000 in net
income for the preceding taxable year
§ Have the principal business
operations in the State of Utah
60% of total employees are at this location or if locating to the state, will
have 60% of total employees at this location within 180 days after receiving
investment from the Rural Investment Company.
§ Is a business that falls within any
of the following industry types:
and natural resources
note that small businesses will work directly with a Rural Investment Company
to secure a potential investment and NOT with the State. All terms and
conditions related to a potential investment are strictly between the small
businesses and the Rural Investment Company only.
APPLICATIONS FOR RURAL INVESTMENT
COMPANIES TO APPLY FOR AN INVESTMENT AUTHORITY ALLOCATION WILL GO LIVE ON
NOVEMBER 1, 2017 12:00 AM MST.