(a) There is hereby established in the Treasury of the Virgin Islands a special fund to be known as the Economic Development Authority Fund to be held by the Commissioner of Finance separate and apart from all other funds of the Government of the Virgin Islands in the treasury and administered at the direction of the Public Finance Authority for the purpose of economic development in the Territory. No moneys therein shall be available for expenditure or disbursement except as provided in this section.
(b) The Economic Development Authority Fund shall consist of all monies appropriated thereto by the Legislature, and of all repayments of loans, payments of interest, and other receipts arising out of joint venture investment projects between the Public Finance Authority and private entities.
(c) Except as provided herein for the establishment and administration of the Economic Development Authority Fund, monies shall be disbursed from the Economic Development Authority Fund by the Commissioner of Finance, upon authorization of the Public Finance Authority, exclusively to fund, loan and develop revenue producing, tourist related development projects and to establish cruise ship home ports and provide incentives for manufacturing operations and other industries, including, but not limited to entertainment, film making and film production in the territory.
(d) The Public Finance Authority shall consider the following criteria in evaluating projects for possible financing under the Economic Development Authority Fund.
(1) provide a substantial number of full time jobs (not less than 10) for Virgin Islanders on a permanent and continuous basis;
(2) generate a flow of taxable revenues;
(3) provide for reasonable financial return;
(4) have reasonable prospects for success;
(5) provide practical opportunities for responsible Virgin Islands business enterprises to participate as suppliers of goods or providers of services; or
(6) demonstrates environmental compatibility.
(e) The Public Finance Authority shall cause to be published in the newspapers of general circulation in the Virgin Islands, invitations for project proposals to be submitted to the Authority. In addition, the Authority shall undertake such educational efforts as may be necessary to create a general public awareness of financing available through the Authority.
(f) All proposals submitted to the Authority shall be accompanied by a business plan which shall include but not be limited to the following items:
(1) a brief description of the business;
(2) audited financial statements for the past three years;
(3) interim financial statements for a period terminating not more than sixty (60) days prior to the loan request;
(4) personal financial statements of all parties holding an ownership interest of five (5%) percent or more;
(5) forecasts of income and expenses for the three (3) years of operations, including cash flow monthly for the first year;
(6) personal resumes of all officers, directors and managing personnel;
(7) credit references;
(8) lease contracts;
(9) use permits;
(10) a full description of the property to be offered as collateral;
(11) certification by the Bureau of Internal Revenue that all U.S. Virgin Islands taxes are current;
(12) certificate of incorporation (where applicable); and
(13) such other documents as may be deemed necessary.
(g) The Authority may make from the Economic Development Authority Fund: (1) direct loans, loans in participation with commercial banks and/or federal agencies; (2) guarantee loans made by such financial institutions; or (3) direct equity investments in projects which meet the criteria established in subsection (d) of this section and subject to the approval of the Legislature of the Virgin Islands.
(h) The funds made available by the Authority may be used for the acquisition of fixed assets, not including real property, acquisition of machinery and equipment for working capital.
(i) The maximum term of such financing shall be fifteen (15) years in the case of fixed assets having a life span of at least fifteen years, eight (8) years for the acquisition of machinery and equipment and five (5) years for working capital.
(j) In all instances, the entrepreneur or owners must have equity investments equal to at least 25% of the total cost of the project.
(k) Financing made available by the Authority may not be used for any of the following purposes; payment of the dividends, interim or bridge financing or the refinancing of debt or the payment of debt or judgments entered in any bankruptcy proceeding.
(l) The Commissioner of Finance and the Public Finance Authority shall maintain a detailed accounting record of all monies deposited into and disbursed from the Economic Development Authority Fund and shall submit annual reports to the Governor and the Legislature on the status of and disbursements from the Fund.