Facebook Twitter

DIVISION PROPOSES A FOUNDATION FOR MIDLEVEL FINANCING

SHARE DIVISION PROPOSES A FOUNDATION FOR MIDLEVEL FINANCING

The Utah Division of Business and Economic Development wants to serve as a catalyst in the formation of an emerging businesses equity foundation that will provide "mezzanine-level financing" to companies that have demponstrable growth potential and need an infusion of capital.

That means division officials will seek out potential investors and examine similar programs in other states and report to the Utah Board of Business and Economic Development during the September meeting when board members might be asked to vote on the proposal.Marvin VanDam, director of business expansion and retention for the division, told board members the state needs and entity foundation to provide between $25,000 and $300,000 to companies that have gone beyond the venture capital stage but haven't reached the established stage.

Based upon what other states have done, the foundation will need $10 million to operate, but it probably could get started and do some good with $2 million initially, VanDam said.

VanDam said the foundation will be operated for profit and won't be funded or operated by state government.