(1) The board has the power to make grants, loans and loan guarantees, and equity investments to any person, including eligible agricultural valueadded cooperatives, as defined in section 35-75-202 (4), for new or ongoing agricultural projects and research that add value to Colorado agricultural products and aid the economy of rural Colorado communities. The board also has the power to fund market promotion activities of the department pursuant to section 35-75-205 (2)(f).
(2) The board shall employ the following criteria in determining whether to award an agriculture value-added grant, loan, or loan guarantee:
(Deleted by amendment, L. 2007, p. 943, § 1, effective May 17, 2007.)
The experience, professional qualifications, and business background of the directorsand consultants chosen to lead the agricultural business project shall be such as to give the project a reasonable chance of success under their leadership;
The contemplated schedule and phasing of the project, whether on an annual or multi-year basis, shall be such as to give the project a reasonable chance of success within three years at a constant or declining rate of support from the board in the form of grants or loans or a combination thereof; and
The economic impact on other local businesses.
(2.5) In addition to the criteria listed in subsection (2) of this section, the board may also consider:
The agricultural business project's planning for long-term success through feasibilitystudies, marketing plans, and business plans;
The agricultural business project's net economic benefit to the state;
The agricultural business project's net economic impact on other local businesses;and
Any other criteria the board determines are necessary to carry out the purposes ofthis part 2.
The board may reject any application for grants, loans and loan guarantees, or equityinvestments pursuant to this part 2.
(a) The board shall require a feasibility study of a member's rural agricultural business project concept to be performed before awarding a grant or loan.
Upon a determination by the board that the project concept is feasible, the board maycause a marketing study to be performed. Such marketing study shall be designed to determine if the project concept may be operated profitably.
Upon a determination by the board that the project concept may be operated profitably, the board may provide for legal assistance to set up the project. Such legal assistance shall include, but not be limited to, providing advice and assistance on the form of business entity and other assistance for which the member may qualify as well as helping the member apply for such assistance.
The board may provide or facilitate grants, loans or loan guarantees, or equity investments for any person who meets the criteria set forth in this part 2 or established by the board under paragraph (d) of subsection (2.5) of this section, including, but not limited to, loans from the United States department of agriculture rural development program, subject to availability. Such financial assistance shall only be provided to feasible project concepts, and the amount of such financial assistance shall be the least amount necessary to cause the project to occur, as determined by the board. The board may structure the financial assistance in a way that causes the project to occur and also provides for a compensatory return on investment or loan payment to the board, based upon the risk of the project concept.
The board may also provide for consulting services for the building and operation ofthe project. Such consulting services may be provided through state employees or through contracts with private entities.
The board may charge the member a reasonable fee for processing an application forfinancial assistance or for other services performed by the board or its staff.
The board may consult with other state or federal agencies as necessary to performits duties pursuant to this part 2.
Source: L. 2001: Entire part added, p. 625, § 2, effective May 30. L. 2007: (1), (2)(a), and (5) amended and (2.5)(d) added, pp. 943, 944, §§ 1, 2, effective May 17. L. 2010: (1), IP(2), (2)(c), (3), (4)(a), (4)(c), and (5) amended, (SB 10-212), ch. 412, p. 2033, § 4, effective July 1.