§690c Selection of Renewable Fuel Capital Investment companies

Summary

Sets rules for choosing companies that will invest in small businesses that make or support renewable energy. To apply, a company must be a new for-profit firm or a new for-profit subsidiary, have managers with experience in alternative-energy or venture capital financing, and plan to focus on small renewable-energy companies. The application must include a business plan, information about the management team, how the company will meet the capital needs of the small firms it will serve, how it will use grant money to give operational help (and whether it has or will hire licensed professionals), an estimate of cash versus in-kind contributions, how it meets the program goals, information on any parent or partner firms, and any other material the Administrator asks for. The Administrator will conditionally approve companies based on things like the plan’s chance of success, management experience, need in the areas where the company will invest, focus on those areas, ability to meet program conditions, and the strength of its plan to give operational help. The Administrator will try to approve at least one company in each region. Each conditionally approved company has 2 years to raise at least $3,000,000 in private capital from nonfederal investors and to secure binding contributions (cash or in-kind) from non-Administration sources payable over a multiyear period up to 10 years. The Administrator may accept a credible plan with at least 20 percent in binding commitments in special cases. In-kind contributions cannot be more than 50 percent of a company’s total contributions. If the company meets these requirements and signs a participation agreement, it gets final approval; if not, the conditional approval is revoked.