Before approving an application to a small business incubator facility, the incubator sponsor shall require that an applying business must show evidence of the following:

1. (1) the business applying for financial aid has a clearly developed business concept or prototype;
2. (2) the business has a reasonable chance of being commercially successful;
3. (3) the financial aid provided by the Agency shall be used to further commercialization of the business including, but not limited to, the further development of the business; the construction of a prototype, the development of a manufacturing process to produce, or to implement a marketing or distribution strategy for the product;
4. (4) financial aid by the Agency is necessary for the commercial development of the business because funding for such commercial development of the business is only available on terms that would substantially hinder its successful commercial development; and

5. (5) the employment created or maintained by commercial development and production of the business will be in the commonwealth.

   The incubator sponsor shall only permit eligible businesses, including, without limitation small businesses located in existing small business incubator facilities, to be tenants in such incubator facility.

   For the purposes of this section, the word ''business'' shall mean any individual, firm, corporation, partnership, trust or other legal entity, in the process of formation or starting as a new business, engaged in, but not limited to, the research, development and construction of a prototype, the development of a manufacturing process to produce the product or to implement a marketing or distribution strategy for the product, including a business located in an existing incubator facility or an existing business which demonstrates a significant diversification of its product line.