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Certified Capital Companies
Purpose
Induce private investment into certified venture capital funds that invest in new or growing Missouri small businesses.
Authorization
Sections 135.500 to 135.529, RSMo
Regulations: 4 CSR 80-7.010 to 7.040
How the Program Works
Private venture capital firms apply to the department for certification as a CAPCO. CAPCOs are allocated state tax credits to be given to insurance companies that invest in the CAPCO funds. At this point, all credits allowed under the law have been authorized. The credits can only be applied toward premium tax liability.
CAPCOs are required to make equity investments in eligible Missouri businesses according to a timetable set by law.
Eligible Areas
Eligible Missouri businesses can be located statewide for all funds except funds created through the “distressed community” allocation. These funds must be invested in businesses located in distressed communities.
Eligible CAPCO Investments
A CAPCO may invest in a “qualified Missouri business,” which must:
- be independently owned and operated;
- be headquartered in Missouri;
- employ less than 200 persons before the investment is made with at least 80% of them employed in Missouri;
- be a small business concern that meets the requirements of the United States Small Business Administration qualification size standards for its venture capital program as defined in Section 13 CFR 121.301(c) of the Small Business Investment Act of 1958, as amended;
- be in need of venture capital and unable to obtain conventional financing; and
- derive its revenue primarily from:
- manufacturing, processing or assembling of products;
- conducting research and development; or
- providing services in interstate commerce, excluding retail, real estate, real estate development, insurance and professional services provided by accountants, lawyers or physicians (service businesses must demonstrate that more than 33% of its revenue would be from outside the state of Missouri).
CAPCO fund investments can be in the form of equity investments, unsecured loans or hybrid investments.
CAPCO funds invested in the business must be used for new capital improvements, research and development and certain working capital expenses. All such funds must be used in Missouri.
The maximum amount a CAPCO may invest in one Missouri business is 15% of the CAPCO’s certified capital.
Funding decisions are made by each CAPCO based on its evaluation.
Contact
Business and Community Services
Finance Management
301 West High Street, Room 770
P.O. Box 118
Jefferson City, MO 65102
Phone: 573-751-4539
Fax: 573-522-4322
E-mail: dedfin@ded.mo.gov
Awarded CAPCOs
DED does not have the authority to require a CAPCO to fund a project. Small businesses interested in receiving funding through this program may contact each CAPCO directly:
Advantage Capital Missouri Partners*
Pierre Laclede Center
7733 Forsyth Blvd.
St. Louis, MO 63105
(314) 725-0800
BOME Investors/Gateway Associates*
8000 Maryland Avenue, Suite 1190
St. Louis, MO 63105
(314) 721-5707
CAPCO Holdings, L.C.**
300 West 11th Street
Kansas City, MO 64105
(816) 391-2040
CFB Emerging Business Funds
11 South Meramec, Suite 1430
St. Louis, MO 63105
(314) 746-7427
Stifel CAPCO, Inc.*
500 North Broadway
Suite 1400
St. Louis, MO 63102
(314) 342-2118
* Has a distressed community fund
** Only a distressed community fund
Business and Community Services
301 W. High Street, Rooms 720, 770 Jefferson City, Missouri 65102
Tel: 1-866-647-3633 Fax: 1-573-751-7384 Email: missouridevelopment@ded.mo.gov
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