7 U.S. Code § 2009cc - Definitions
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In this subchapter:
The term “articles” means articles of incorporation for an incorporated body or the functional equivalent or other similar documents specified by the Secretary for other business entities.
(2) Developmental venture capital
The term “developmental venture capital” means capital in the form of equity capital investments in rural business investment companies with an objective of fostering economic development in rural areas.
(3) Employee welfare benefit plan; pension plan
(A) In general
The terms “employee welfare benefit plan” and “pension plan” include—
(4) Equity capital
The term “equity capital” means common or preferred stock or a similar instrument, including subordinated debt with equity features.
The term “leverage” includes—
(7) Limited liability company
The term “limited liability company” means a business entity that is organized and operating in accordance with a State limited liability company law approved by the Secretary.
The term “member” means, with respect to a rural business investment company that is a limited liability company, a holder of an ownership interest or a person otherwise admitted to membership in the limited liability company.
(9) Operational assistance
The term “operational assistance” means management, marketing, and other technical assistance that assists a rural business concern with business development.
(10) Participation agreement
(11) Private capital
(A) In general
The term “private capital” means the total of—
(ii) unfunded binding commitments from investors that meet criteria established by the Secretary to contribute capital to the rural business investment company, except that—
(I) unfunded commitments may be counted as private capital for purposes of approval by the Secretary of any request for leverage; but
The term “private capital” does not include—
(iii) any funds obtained directly or indirectly from the Federal Government or any State (including by a political subdivision, agency, or instrumentality of the Federal Government or a State), except for—
(I) funds obtained from the business revenues (excluding any governmental appropriation) of any federally chartered or government-sponsored enterprise established prior to May 13, 2002;
(12) Qualified nonprivate funds
The term “qualified nonprivate funds” means any—
(A) funds directly or indirectly invested in any applicant or rural business investment company on or before May 13, 2002, by any Federal agency, other than the Department of Agriculture, under a provision of law explicitly mandating the inclusion of those funds in the definition of the term “private capital”; and
(B) funds invested in any applicant or rural business investment company by 1 or more entities of any State (including by a political subdivision, agency, or instrumentality of the State and including any guarantee extended by those entities) in an aggregate amount that does not exceed 33 percent of the private capital of the applicant or rural business investment company.
(13) Rural business concern
The term “rural business concern” means—
(B) a for-profit or nonprofit business controlled by an Indian tribe on a Federal or State reservation or other federally recognized Indian tribal group; or
that primarily operates in a rural area, as determined by the Secretary.
(14) Rural business investment company
The term “rural business investment company” means a company that—
(15) Smaller enterprise
The term “smaller enterprise” means any rural business concern that, together with its affiliates—
(i) a net financial worth of not more than $6,000,000, as of the date on which assistance is provided under this subchapter to the rural business concern; and
(ii) an average net income for the 2-year period preceding the date on which assistance is provided under this subchapter to the rural business concern, of not more than $2,000,000, after Federal income taxes (excluding any carryover losses), except that, for purposes of this clause, if the rural business concern is not required by law to pay Federal income taxes at the enterprise level, but is required to pass income through to the shareholders, partners, beneficiaries, or other equitable owners of the business concern, the net income of the business concern shall be determined by allowing a deduction in an amount equal to the total of—
(I) if the rural business concern is not required by law to pay State (and local, if any) income taxes at the enterprise level, the net income (determined without regard to this clause), multiplied by the marginal State income tax rate (or by the combined State and local income tax rates, as applicable) that would have applied if the business concern were a corporation; and