Rules and Regulations for the First Wave Closing Fund

Regulation Authority:

R.I. Gen. Laws § 42- 64.23-1 et seq.

Purpose and Reason:

The Rules implement the newly-enacted First Wave Closing Fund, R.I. Gen. Laws § 42- 64.23-1 et seq., which permits the Corporation to provide lynchpin financing unavailable from other sources to close transactions of a critical or catalytic nature. Funds can be used for (1) working capital, equipment, furnishings, fixtures; (2) the construction, rehabilitation, purchase of real property; (3) as permanent financing; or (4) such other purpose as the Corporation approves. Financing can take the form of equity, debt, or a grant. To qualify for financing, a project must result in the creation or retention of at least 25 full-time jobs; have the potential to spur further private investment or economic activity in the community in which it is located; or involve infrastructure or a facility that will support or enhance development in the community in which it is located, including, but not limited to, transportation, parks, greenways, performance venues, meeting facilities, or other community facilities. An applicant must also show that all other options for financing, within reason, have been exhausted.