Kentucky Revised Statutes Title XIII. Education § 164.6021.Purposes and administration of Kentucky enterprise fund

(1) The Cabinet for Economic Development shall manage the Kentucky enterprise fund to provide capital to small and medium-size, Kentucky-based companies to undertake feasibility, concept development, research and development, or commercialization work.

(2) The purpose of the Kentucky enterprise fund is to:

(3) The Kentucky enterprise fund shall be used to fund qualified companies in accordance with this section as follows:

(4) Beginning July 1, 2021, the cabinet shall allocate at least twenty percent (20%) of the annual allotment of funds for the Kentucky enterprise fund to qualified companies located in rural or enhanced incentive counties, as certified under KRS 154.32-050, and at least twenty percent (20%) of the annual allotment of funds to qualified companies located in Opportunity Zones, as designated by the Commonwealth and certified by the Secretary of the United States Treasury.

(5) For all funding totaling more than thirty thousand dollars ($30,000), the science and technology organization or any entity designated by the executive director of the Office of Entrepreneurship and Innovation shall receive an equity interest in the qualified company, such as a general or limited partnership interest, limited liability company interest, common or preferred stock with or without voting rights and without regard to seniority position, forms of subordinate or convertible unsecured debt, or both, with warrants, rights, or other means of equity conversion attached, a near equity interest such as a simple agreement for future equity or “SAFE agreement”, or other convertible debt instruments that are determined to qualify as an adequate investment interest by the executive director of the Office of Entrepreneurship and Innovation.