{"data":{"id":"us-ok/okla.-stat.-tit.-68-68-2357.61","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 68, § 68-2357.61","heading":"Definitions","body":"As used in the Small Business Capital Formation Incentive Act:\n\n1. \"Acquisition\" means the use of capital by an Oklahoma small\n\nbusiness venture within six (6) months after obtaining the capital\n\nto purchase fifty-one percent (51%) or more of the voting interest\n\nentitled to elect the governing board, or its equivalent, of any\n\nother legal entity, regardless of the legal form of the entity. As\n\nused in the Small Business Capital Formation Incentive Act,\n\n\"acquisition\" does not mean the right to participate in the proceeds\n\nfrom sale of goods or services, whether denominated a royalty,\n\nroyalty interest or otherwise, and does not mean the right to\n\nintellectual property, whether the rights arise from copyright,\n\ntrademark or patent law;\n\n2. \"Capitalization\" means the amount of:\n\na. any funds that have actually been contributed to the\n\nqualified small business capital company,\n\nb. any contractual commitment to provide funds to the\n\nqualified small business capital company to the extent\n\nthat such commitment is payable on demand and has\n\nsubstantial economic penalties for breach of the\n\ncommitment to provide such funds, and\n\nc. any allocation of tax credit authority awarded to the\n\nqualified small business capital company by the\n\nCommunity Development Financial Institutions Fund\n\npursuant to Section 45D of the Internal Revenue Code\n\nof 1986, as amended, to the extent such allocation has\n\nnot been previously designated by the qualified small\n\nbusiness capital company as contemplated by Section\n\n45D(b)(1)(C) of the Internal Revenue Code of 1986, as\n\namended;\n\n3. \"Equity and near-equity security\" means common stock,\n\npreferred stock, warrants or other rights to subscribe to stock or\n\nits equivalent, or an interest in a limited liability company,\n\npartnership, or subordinated debt that is convertible into, or\n\nentitles the holder to receive upon its exercise, common stock,\n\npreferred stock, a royalty or net profits interest, or an interest\n\nin a limited liability company or partnership;\n\n4. \"Financial lending institution\" means a bank, credit union,\n\nsavings and loan, commercial finance company or other entity\n\nprincipally engaged in the extension of credit;\n\n5. \"Oklahoma small business venture\" means a business,\n\nincorporated or unincorporated, which:\n\na. has or will have, within one hundred eighty (180) days\n\nafter a qualified investment is made by a qualified\n\nsmall business capital company, at least fifty percent\n\n(50%) of its employees or assets located in Oklahoma,\n\nb. needs financial assistance in order to commence or\n\nexpand such business which provides or intends to\n\nprovide goods or services,\n\nc. is engaged in a lawful business activity under any\n\nIndustry Number appearing under any Major Group Number\n\nof Divisions A, C, D, E, F or I of the Standard\n\nIndustrial Classification Manual, 1987 revision with\n\nthe following exceptions:\n\n(1) Major Group 1 of Division A, and\ness which provides or intends to\n\nprovide goods or services,\n\nc. is engaged in a lawful business activity under any\n\nIndustry Number appearing under any Major Group Number\n\nof Divisions A, C, D, E, F or I of the Standard\n\nIndustrial Classification Manual, 1987 revision with\n\nthe following exceptions:\n\n(1) Major Group 1 of Division A, and\n\n(2) Major Group 2 of Division A,\n\nd. qualifies as a small business as defined by the\n\nfederal Small Business Administration, and\n\ne. expends within eighteen (18) months after the date of\n\nthe qualified investment at least fifty percent (50%)\n\nof the proceeds of the qualified investment for the\n\nacquisition of tangible or intangible assets which are\n\nused in the active conduct of the trade or business or\n\nto provide working capital for the active conduct of\n\nthe trade or business for which the determination of\n\nthe small business qualification pursuant to\n\nsubparagraph d of this paragraph was made. For\n\npurposes of this subparagraph, “working capital” shall\n\nnot include consulting, brokerage or transaction fees.\n\nProvided, that the Oklahoma Tax Commission, upon\n\nrequest and demonstration of need by a qualified small\n\nbusiness capital company or an Oklahoma small business\n\nventure, or an investor or an authorized agent of any\n\nsuch entities, may extend the 18-month period\n\notherwise required by this subparagraph for a period\n\nnot to exceed six (6) months. Provided, the\n\nexpenditure of the invested funds by the Oklahoma\n\nsmall business venture shall otherwise comply with the\n\nrequirements applicable to the usage of tax credits\n\nfor qualified investment in the Oklahoma small\n\nbusiness venture. As used in this subparagraph,\n\n“tangible assets” shall include the acquisition of\n\nreal property and the construction of improvements\n\nupon real property if such acquisition and\n\nconstruction otherwise comply with the requirements\n\napplicable to the usage of tax credits for qualified\n\ninvestment in the Oklahoma small business venture, and\n\n“intangible assets” shall be limited to computer\n\nsoftware, licenses, patents, copyrights and similar\n\nitems;\n\n6. \"Qualified investment\" means an investment of funds in the\n\nform of \"equity\" and \"near-equity\" as defined in paragraph 3 of this\n\nsection or \"subordinated debt\" as defined in paragraph 8 of this\n\nsection; provided, an investment which is contingent upon the\n\noccurrence of an event or which is subject to being refunded or\n\nreturned in the absence of such event shall only be deemed to have\n\nbeen made upon the occurrence of the event;\n\n7. \"Qualified small business capital company\" means a C\n\ncorporation or a subchapter S corporation, as defined by the\n\nInternal Revenue Code of 1986, as amended, incorporated pursuant to\n\nthe laws of Oklahoma, limited liability company or a registered\n\nbusiness partnership with a certificate of partnership filed as\n\nrequired by law, which meets the following criteria:\n\na. the corporation, limited liability company or\n\npartnership is organized to provide the direct\n\ninvestment of equity and near-equity funds to\n\ncompanies within this state,\n\nb. the principal place of business of the corporation,\n\nlimited liability company or partnership is located\n\nwithin this state,\n\nc. the capitalization of the corporation, limited\n\nliability company or partnership is not less than One\n\nMillion Dollars ($1,000,000.00), and\n\nd. the corporation, limited liability company or\n\npartnership has investment of not more than twenty\n\npercent (20%) of its capitalization in any one company\n\nat any time during the calendar year of the\n\ncorporation, limited liability company or partnership;\n\nand\n\n8. \"Subordinated debt\" means indebtedness with a maturity date\n\nof not less than five (5) years that is subordinated to all other\n\nindebtedness of the issuer that has been issued or is to be issued\nhas investment of not more than twenty\n\npercent (20%) of its capitalization in any one company\n\nat any time during the calendar year of the\n\ncorporation, limited liability company or partnership;\n\nand\n\n8. \"Subordinated debt\" means indebtedness with a maturity date\n\nof not less than five (5) years that is subordinated to all other\n\nindebtedness of the issuer that has been issued or is to be issued\n\nto a financial lending institution. The indebtedness shall not have\n\na repayment schedule that is faster than a level principal\n\namortization over five (5) years.","path":["OK Code","Title 68"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os68.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"8e31f5c7efc91e0c35b2420dbd3798b96887455f75ea4449a18aa1cca951cb8a","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-68-68-2357.601","next":"us-ok/okla.-stat.-tit.-68-68-2357.61a"},"notice":"GroundRules: Original legal text. Not legal advice."}