Section: Guard dog
2. The Legislature finds and declares that:
a. Businesses with a small capital investment are an essential part of the economy of the State in terms of products and services and as employers;
b. While New Jersey is a "capital rich" State, the connection of capital with those seeking equity investment has not readily taken place;
c. At various times in the past, efforts have been made to raise capital for the purpose of making equity investments in small capital businesses;
d. In its report issued in August of 1994, the Assembly Task Force on Business Retention, Expansion, and Export Opportunities specifically called for greater use of Small Business Investment Companies and identified the development of private sources of small business equity capital as a major need for the State. Then in October of 1994, the New Jersey Economic Development Authority (EDA) issued a Request for Proposal seeking a Fund Manager to serve as a General Partner for the development and implementation of a well diversified venture capital pool for investment in small business growth, encouraged use of Small Business Investment Companies and pledged an initial investment to this pool from the EDA of $2.5 million;
e. Efforts such as that currently initiated by the EDA with the commitment of government funds have had difficulty in the past in gaining private investor support and thus, for the most part, have not provided much assistance in the way of small business development and expansion.
The Legislature therefore determines that the establishment of a private partnership to act as a source of new private capital to be used as equity capital for small capital businesses is necessary, that the partnership initially should be formed with individuals who are willing to commit private capital for equity investments, and that the partnership should be enlarged by seeking commitments from financial institutions and other entities seeking to encourage the development and expansion of small capital businesses in this State, by cooperation with State entities engaged in similar efforts and, where appropriate, by gaining the commitment of State funds to match private investor funds.
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