KRS 154.20-232: Purpose of KRS 154.20-230 to 154.20-240.

(1) KRS 154.20-230 to 154.20-240 shall be known as the "Kentucky Angel Investment

Act."

(2) The purpose of KRS 141.396 and 154.20 -230 to 154.20-240 is to encourage capital

investment in the Commonwealth by individual investors that will further the

establishment or expansion of small businesses, create additional jobs, and foster

the development of new products and technologies, by providing tax credits for

certain investments in small businesses located in the Commonwealth, operating in

the fields of knowledge -based, high -tech, and research and development, and

showing a potential for rapid growth.

(3) To participate in the program created by KRS 141.396 and 154.20 -230 to 154.20 -

240:

(a) Small businesses and individual investors shall request certification from the

authority pursuant to KRS 154.20 -236. To be qualified, the small businesses

and individual investors shall fulfill the requirements outlined in KRS 154.20 -

234;

(b) Once certified, qualified investors may apply to the authority for a credit in

return f or making the investment if that investment qualifies under KRS

154.20-234; and

(c) Once the authority certifies the qualified investment, the qualified investor

may effectuate the investment, pursuant to any and all guidelines issued by the

authority.

(4) Any qualified investment made in a qualified small business under KRS 154.20-230

to 154.20 -240 shall be used by that business, insofar as possible, to leverage

additional capital investments from other sources.