(a) A pass-through entity may apply to the Director for certification as a qualified fund for a calendar year.

(1) The application must be in the form and be made under the procedures specified by the Director,accompanied by an application fee set by the Director, not to exceed $1,500.

(2) Application fees must be deposited in the Angel Investor Job Creation and Innovation Act Administration Fund.

(3) The application for certification for calendar year 2019 must be made available on the Division’s web site by November 1, 2018. The application for certification for subsequent calendar years must be made available on the Division’s web site by November 1 of the preceding calendar year.

(b) (1) Within 30 days of receiving an application for certification under this section, the Director must do 1 of the following:

a. Certify the pass-through entity as satisfying the conditions required of a qualified fund.

b. Request additional information from the pass-through entity.

c. Reject the application for certification.

(2) If the Director requests additional information from the pass-through entity, the Director must either certify the pass-through entity or reject the application within 30 days of receiving the additional information.

(3) If the Director neither certifies the pass-through entity nor rejects the application within 30 days of receiving the original application or within 30 days of receiving the additional information requested, whichever is later, then the application is deemed rejected, and the Director must refund the application fee.

(4) A pass-through entity that applies for certification and is rejected may reapply.

(c) To receive certification under this section, a pass-through entity must meet all of the following conditions:

(1) Invest or intend to invest in a qualified small business.

(2) Be organized as a pass-through entity.

(3) Have at least 3 separate investors, at least 3 of whom intend to invest in a qualified small business and satisfy the condition in § 20D-103(c) of this title.

(d) Investments by the pass-through entity may consist of equity investments or notes that pay interest or other fixed amounts, or any combination of both.

(e) For a qualified investment in a qualified small business to be eligible for tax credits, a qualified fund that makes the investment must be certified under this section for the calendar year before making the qualified investment.

81 Del. Laws, c. 244, § 3.