The Texas Enterprise Fund is a business incentive fund that was created by legislation in 2003. The fund, which had an initial $295 million investment, is used for ensuring the growth of business in Texas. One of Texas’ most competitive recruitment tools, these funds are used primarily to attract new business to the state or assist with the substantial expansion of an existing business as part of a competitive recruitment situation. Sources indicate that since 2003 the Fund has yielded up to $6.3 billion in capital investment in Texas by out-of-state companies .
Texas is the second largest state in the United States by both area and population. Geographically located in the South Central region of the country, Texas shares borders with the U.S. states of Louisiana to the east, Arkansas to the northeast, Oklahoma to the north, New Mexico to the west, and the Mexican states of Chihuahua, Coahuila, Nuevo León, and Tamaulipas to the southwest, while the Gulf of Mexico is to the southeast.
In 2004, authorization was given for the fund to grant $20 million to Countrywide Financial in return for a promise "to create 7,500 new jobs in the state by 2010." The grant (all of which are approved by the Governor, the Lieutenant Governor and Speaker of the House) is one of the largest made from the fund in terms of the size and the number of jobs promised. In the fall of 2007, while slashing jobs and with its stock price plummeting, Countrywide was eventually acquired in a fire sale by Bank of America. But thanks to the "claw-back" provisions in the program, grantees return all funds to the state for jobs not created.
A fire sale is the sale of goods at extremely discounted prices. The term originated in reference to the sale of goods at a heavy discount due to fire damage. A good example would be in Heatons in 1993. It may or may not be defined as a closeout, the final sale of goods to zero inventory. They are said to occur in the financial markets when bidders who value assets highly are prevented from bidding on them, depressing the average selling price below what it otherwise would be. This lowering of the price can cause even further issues because it may be inaccurately perceived as signaling negative information.
The Bank of America Corporation is an American multinational investment bank and financial services company based in Charlotte, North Carolina with central hubs in New York City, London, Hong Kong, Minneapolis, and Toronto. Bank of America was formed through NationsBank's acquisition of BankAmerica in 1998. It is the second largest banking institution in the United States, after JP Morgan Chase. As a part of the Big Four, it services approximately 10.73% of all American bank deposits, in direct competition with Citigroup, Wells Fargo, and JPMorgan Chase. Its primary financial services revolve around commercial banking, wealth management, and investment banking.
In 2012, it was announced that Apple would be adding a new campus in Austin, creating 3,600 new jobs. The Fund would be investing $21 million over ten years.
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. It is considered one of the Big Four of technology along with Amazon, Google, and Facebook.
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Private equity typically refers to investment funds, generally organized as limited partnerships, that buy and restructure companies that are not publicly traded.
Robert Alphonso Taft III is an American politician and attorney.
Funding is the act of providing financial resources, usually in the form of money, or other values such as effort or time, to finance a need, program, and project, usually by an organization or company. Generally, this word is used when a firm uses its internal reserves to satisfy its necessity for cash, while the term financing is used when the firm acquires capital from external sources.
The Workforce Investment Act of 1998 was a United States federal law that was repealed and replaced by the 2014 Workforce Innovation and Opportunity Act.
TPG Capital is an American investment company. It is one of the largest private equity investment firms in the world, focused on leveraged buyouts, growth capital TPG also manages investment funds specializing in growth capital, venture capital, public equity, and debt investments. The firm invests in a broad range of industries including consumer/retail, media and telecommunications, industrials, technology, travel/leisure and health care.
The California Public Employees' Retirement System (CalPERS) is an agency in the California executive branch that "manages pension and health benefits for more than 1.6 million California public employees, retirees, and their families". In fiscal year 2012–13, CalPERS paid over $12.7 billion in retirement benefits, and in fiscal year 2013 it is estimated that CalPERS will pay over $7.5 billion in health benefits.
Bank of America Home Loans is the mortgage unit of Bank of America. In 2008, Bank of America purchased the failing Countrywide Financial for $4.1 billion. In 2006, Countrywide financed 20% of all mortgages in the United States, at a value of about 3.5% of United States GDP, a proportion greater than any other single mortgage lender.
The Permanent University Fund (PUF) is a sovereign wealth fund created by the State of Texas to fund public higher education within the state. A portion of the returns from the PUF are annually directed towards the Available University Fund (AUF), which distributes the funds according to provisions set forth by the 1876 Texas Constitution, subsequent constitutional amendments, and the board of regents of the University of Texas System and the Texas A&M University System. The PUF provides extra funds, above monies from tax revenues, to the UT System and the Texas A&M System which collectively have approximately 50 percent of state public university students. The PUF does not provide any funding to other public Universities in the State of Texas.
The Appalachian Regional Commission (ARC) is a United States federal-state partnership that works with the people of Appalachia to create opportunities for self-sustaining economic development and improved quality of life. Congress established ARC to bring the region into socioeconomic parity with the rest of the nation.
Digital Opportunity Investment Trust (DOIT) is a proposal to create a United States federal trust to distribute, for educational purposes, funds to be raised by public auctions of licenses to use radio frequency bands.
The Texas Emerging Technology Fund is a technology investment fund created by legislation in 2005 at the urging of Governor Rick Perry to provide Texas with an unparalleled advantage in the research, development, and commercialization of emerging technologies. The enabling legislation launched the ETF with $200 million to help create jobs and develop the economy of Texas. Legislative revisions during the 2007 and 2009 sessions have expanded the total funds under management to approximately $500 million.
A sovereign wealth fund (SWF) or sovereign investment fund is a state-owned investment fund that invests in real and financial assets such as stocks, bonds, real estate, precious metals, or in alternative investments such as private equity fund or hedge funds. Sovereign wealth funds invest globally. Most SWFs are funded by revenues from commodity exports or from foreign-exchange reserves held by the central bank. By historic convention, the United States' Social Security Trust Fund, with US$2.8 trillion of assets in 2014, and similar vehicles like Japan Post Bank's JP¥200 trillion of holdings, are not considered sovereign wealth funds.
The United States EB-5 visa, employment-based fifth preference category or EB-5 Immigrant Investor Visa Program, created in 1990 by the Immigration Act of 1990, provides a method for eligible Immigrant Investors to become lawful permanent residents — informally known as "green card" holders — by investing at least $1,000,000 to finance a business in the United States that will employ at least 10 American workers." Most immigrant investors who use the EB-5 program invest in a targeted employment area (TEA) — a rural area or area with high unemployment — which lowers the investment threshold to $500,000. The EB-5 program is intended to encourage both "foreign investments and economic growth". The EB-5 Immigrant Investor Visa Program is one of five employment-based (EB) preference programs in the United States.
An angel investor is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity. A small but increasing number of angel investors invest online through equity crowdfunding or organize themselves into angel groups or angel networks to share investment capital, as well as to provide advice to their portfolio companies.
The Utah Science Technology and Research Initiative (USTAR) is a technology-based economic development agency funded by the state of Utah. The organization works to develop ideas and research into marketable products and successful companies through its competitive grant and entrepreneur support programs. USTAR facilitates the diversification of the state’s tech economy, increases private follow-on investment, and supports the creation of technology-based start-up firms, higher paying jobs and additional business activity leading to a statewide expansion of Utah’s tax base.
The Maryland Department of Commerce is a government agency in the state of Maryland in the United States. Although its roots began in 1884, the department came to be recognized as the Department of Commerce in 2015.
Transportation Investment Generating Economic Recovery (TIGER) is a supplementary discretionary grant program included in the American Recovery and Reinvestment Act of 2009. The legislation provided $1.5 billion for a National Surface Transportation System through September 30, 2011, "to be awarded on a competitive basis for capital investments in surface transportation projects".
Rick Perry, having served as the Lieutenant Governor of Texas for one year, succeeded to the office of Governor of Texas on December 21, 2000 when the incumbent governor, George W. Bush. resigned to prepare for his presidential inauguration. Perry became the first Texas A&M graduate to serve as governor. Perry was a member of the Republican Governors Association, the National Governors Association, the Western Governors Association, and the Southern Governors Association. Perry served as Chairman of the Republican Governors Association in 2008 and 2011.
Certified Capital Companies ("CAPCOs") are generally debt lending based programs that employ future state tax credits as a subsidy to these funds. CAPCOs have been operated in the District of Columbia and eight states, including: Alabama, Colorado, Florida, Louisiana, Missouri, New York, Texas, and Wisconsin. Generally, CAPCOs sponsor their specific programs in states through legislation with the claims of economic development, job creation and retention, and certain instances, investment in specific sectors.
The Laura and John Arnold Foundation is a private foundation run by John D. Arnold, an American hedge fund manager, and his wife Laura Arnold. The organization was founded in 2008, the same year that the Arnolds signed the Giving Pledge, a pledge by some high-net-worth individuals to donate a large fraction of their income to philanthropic causes during their lifetimes.