{"data":{"id":"us-ok/okla.-stat.-tit.-68-68-2357.72","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 68, § 68-2357.72","heading":"Definitions","body":"As used in the Rural Venture Capital Formation Incentive Act:\n\n1. \"Acquisition\" means the use of capital by an Oklahoma rural\n\nsmall business venture within six (6) months after obtaining the\n\ncapital to purchase fifty-one percent (51%) or more of the voting\n\ninterest entitled to elect the governing board, or its equivalent,\n\nof any other legal entity, regardless of the legal form of the\n\nentity. As used in the Rural Venture Capital Formation Incentive\n\nAct, \"acquisition\" does not mean the right to participate in the\n\nproceeds from sale of goods or services, whether denominated a\n\nroyalty, royalty interest or otherwise, and does not mean the right\n\nto intellectual 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 rural small business capital company,\n\nb. any contractual commitment to provide funds to the\n\nqualified rural small business capital company to the\n\nextent that such commitment is payable on demand and\n\nhas substantial economic penalties for breach of the\n\ncommitment to provide such funds,\n\nc. any allocation of tax credit authority awarded to the\n\nqualified rural 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 rural\n\nsmall business capital company as contemplated by\n\nSection 45D(b)(1)(C) of the Internal Revenue Code of\n\n1986, as amended, and\n\nd. any funds loaned to the qualified rural small business\n\ncapital company, which is licensed as a rural business\n\ninvestment company under 7 U.S.C., Section 2009cc et\n\nseq., or any successor statute, by the U.S. Small\n\nBusiness Administration or U.S. Department of\n\nAgriculture;\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. “Nonmetropolitan area” means all areas of the state except a\n\ncounty having a population in excess of one hundred thousand\n\n(100,000) persons according to the most recent Federal Decennial\n\nCensus;\n\n6. \"Oklahoma rural 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\nrural small business capital company, at least fifty\n\npercent (50%) of its employees or assets located in\n\nOklahoma,\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. has its principal place of business within a\n\nnonmetropolitan area of the state and conducts the\n\nactivity resulting in at least seventy-five percent\n\n(75%) of its gross annual revenue from a\n\nnonmetropolitan area of the state,\n\nd. except as otherwise provided by this subparagraph, is\n\nengaged 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\nf its gross annual revenue from a\n\nnonmetropolitan area of the state,\n\nd. except as otherwise provided by this subparagraph, is\n\nengaged 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\ne. qualifies as a small business as defined by the\n\nfederal Small Business Administration, and\n\nf. 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\nfor working capital for the active conduct of such\n\ntrade or business for which the determination of the\n\nsmall business qualification pursuant to subparagraph\n\ne of this paragraph was made. For purposes of this\n\nsubparagraph, “working capital” shall not include\n\nconsulting, brokerage or transaction fees. Provided,\n\nthat the Oklahoma Tax Commission, upon request and\n\ndemonstration by a qualified rural small business\n\ncapital company or an Oklahoma rural 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\nrural small business shall otherwise comply with the\n\nrequirements applicable to the usage of tax credits\n\nfor qualified investment in the Oklahoma rural 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 rural small business\n\nventure, and “intangible assets” shall be limited to\n\ncomputer software, licenses, patents, copyrights and\n\nsimilar items;\n\n7. \"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 9 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\n8. \"Qualified rural 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 Five\n\nHundred Thousand Dollars ($500,000.00), and\n\nd. the corporation, limited liability company or\n\npartnership has investment of not more than twenty-\n\nfive percent (25%) of its capitalization in any one\n\ncompany at any time during the calendar year of the\n\ncorporation, limited liability company or partnership;\n\nand\n\n9. \"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\nnvestment of not more than twenty-\n\nfive percent (25%) of its capitalization in any one\n\ncompany at any time during the calendar year of the\n\ncorporation, limited liability company or partnership;\n\nand\n\n9. \"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":"c5a84f27bb17ae89b7375b848f56143481506644a148b19a02f20df59e300057","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-68-68-2357.71","next":"us-ok/okla.-stat.-tit.-68-68-2357.72a"},"notice":"GroundRules: Original legal text. Not legal advice."}