Funding decisions on applications for funding capital outlay and operational grants will be made by the Committee based on the criteria listed below:

1. (1) Purpose or mission of incubator.

2. (2) Match:

   1. (a) Amount of match
   2. (b) Percent of match relative to total project cost
   3. (c) Certainty of match
   4. (d) Nature of match.

3. (3) Suitability of community for incubator:

   1. (a) Critical mass based on factors listed below:

      1. 1. Population base
      2. 2. Proximity of technical assistance
      3. 3. Base of potential entrepreneurs
      4. 4. Leadership potential/community support
   2. (b) Relationship to other communities in incubator network if part of network.

4. (4) Suitability of building:

   1. (a) Location

   2. (b) Characteristics of building:

      1. 1. Size
      2. 2. Structural soundness
      3. 3. Internal configuration/layout
      4. 4. Quality of space
      5. 5. Adaptability of building
      6. 6. Cost
      7. 7. Other characteristics.

5. (5) Services being provided or to be provided to clients:

   1. (a) Type of services to be provided
   2. (b) Quality of services
   3. (c) Suitability of services
   4. (d) Expected cost of operation.

6. (6) Technical assistance and consulting services:

   1. (a) Type of assistance provided or to be provided tenants

   2. (b) Quality of assistance provided or to be provided tenants:

      1. 1. Background of provider/resume'
      2. 2. Proximity of provider
      3. 3. Expecte
   3. (c) Appropriateness of technical assistance and consulting services to be provided.

7. (7) Appropriateness of operational policies:

   1. (a) Business plan for incubator

   2. (b) Entrance policies for incubator:

      1. 1. Business plan for applicants

      2. 2. Method of determining:

         1. (i) Viability of business concept
         2. (ii) Viability of marketing strategy

         3. (iii) Soundness of principals:

            1. (I) Financial history
            2. (II) Business history

   3. (c) Level of subsidy to be provided tenants:

      1. 1. Basis for determination

   4. (d) Graduation policies:

      1. 1. Time frame
      2. 2. Profitability and soundness of company
      3. 3. Exceptional cases
      4. 4. Other.

8. (8) Nature of policy making board of incubator:

   1. (a) Make-up of board
   2. (b) By-laws
   3. (c) How elected or appointed
   4. (d) Conflict of interest provisions.

9. (9) Reasons capital outlay assistance is needed:

   1. (a) Type of capital outlays to be made
   2. (b) Purpose of outlay
   3. (c) Reasons outlay is needed

   4. (d) Expected result of outlay:

      1. 1. Jobs
      2. 2. Operating efficiency
      3. 3. Effectiveness of incubator
      4. 4. Cash flow of incubator
      5. 5. Other.

10. (10) Reasons operational assistance is needed:

    1. (a) Type of operational assistance needed
    2. (b) Purpose of operational expenditures
    3. (c) Reasons assistance is needed

    4. (d) Expected result of operational assistance:

       1. 1. Additional jobs
       2. 2. Operational efficiency
       3. 3. Effectiveness of incubator
       4. 4. Cash flow of incubator
       5. 5. Other.

Author: Don Reid and Harris Cooper

Statutory Authority: Code of Ala. 1975, 1993 Ala. Acts 543.

History: New Rule: Filed November 29, 1993; Effective January 3, 1994.