{"data":{"id":"us-ky/krs-164.6021","jurisdiction":"us-ky","citation":"KRS 164.6021","heading":"Purposes and administration of Kentucky enterprise fund.","body":"(1) The Cabinet for Economic Development shall manage the Kentucky enterprise fund\nto provide capital to early -stage and high -growth, Kentucky -based companies to\nundertake feasibil ity, concept development, research and development,\ncommercialization, or expansion work.\n(2) The purpose of the Kentucky enterprise fund is to:\n(a) Accelerate knowledge transfer and technological innovation, improve\neconomic competitiveness, and spur econ omic growth in Kentucky -based\ncompanies;\n(b) Support feasibility, concept development, research and development, or\ncommercialization activities that have clear potential to lead to commercially\nsuccessful products, processes, or services within a reasonable period of time;\n(c) Stimulate growth-oriented enterprises within the Commonwealth;\n(d) Encourage partnerships and collaborative projects between private enterprises,\nKentucky's colleges and universities, and research organizations, including\ncollaborations involving one (1) or more such entities;\n(e) Promote research and development and commercialization activities that are\nmarket-oriented;\n(f) Support early-stage and high-growth companies; and\n(g) Attract, recruit, and support early -stage and high-growth companies to locate,\nrelocate, or establish a substantial presence in the Commonwealth.\n(3) The Kentucky enterprise fund shall be used to fund qualified companies in\naccordance with this section as follows:\n(a) Funding of up to fifty thousand dollars ($50,000) for companies exploring the\nfeasibility of technology commercialization or projects related to feasibility\nstudies, such as incubator and accelerator programs;\n(b) Funding of up to two hundred fifty thousand dollars ($250,000) for companies\nin the concept development phase of technology commercialization;\n(c) Funding of up to five hundred thousand dollars ($500,000) for companies\nadvancing and promoting the program goals, as outlined in subsection (2) of\nthis section; and\n(d) For new investments made on or after July 1, 2021, no qualified company can\nreceive a total investment from the fund in excess of up to five hundred\nthousand dollars ($500,000).\n(4) The cabinet shall allocate at least twenty percent (20% ) of the annual allotment of\nfunds for the Kentucky enterprise fund to qualified companies located in rural or\nheritage counties, and at least twenty percent (20%) of the annual allotment of\nfunds to qualified companies located in Opportunity Zones, as des ignated by the\nCommonwealth and certified by the Secretary of the United States Treasury. As\nused in this subsection, \"heritage county\" means a county where the county\npopulation ranking determined by the cabinet under KRS 154.21 -017 scores greater\nthan or equal to ninety-seven (97).\n(5) For all funding totaling more than thirty thousand dollars ($30,000), the science and\ntechnology organization or any entity designated by the executive director of the\nOffice of Entrepreneurship and Innovation shall receive  an equity interest in the\nqualified company, such as a general or limited partnership interest, limited liability\ncompany interest, common or preferred stock with or without voting rights and\nwithout regard to seniority position, forms of subordinate or c onvertible unsecured\ndebt, or both, with warrants, rights, or other means of equity conversion attached, a\nnear equity interest such as a simple agreement for future equity or \"SAFE\nagreement,\" or other convertible debt instruments that are determined to q ualify as\nan adequate investment interest by the executive director of the Office of\nEntrepreneurship and Innovation.","path":["KRS Chapter 164"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=57633","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:16Z","sha256":"244b26cf07bad0656705f33ee95df262a5c421e0bc7fb008e2a08eb3d4f8feb0","source_id":"us-ky","stale":false,"prev":"us-ky/krs-164.602","next":"us-ky/krs-164.6023"},"notice":"GroundRules: Original legal text. Not legal advice."}