(a) EligibilityA company shall be eligible to apply to participate, as a rural business investment company, in the program established under this subchapter if—
(1)
the company is a newly formed for-profit entity or a newly formed for-profit subsidiary of such an entity;
(2)
the company has a management team with experience in community development financing or relevant venture capital financing; and
(3)
the company will invest in enterprises that will create wealth and job opportunities in rural areas, with an emphasis on smaller enterprises.
(b) ApplicationTo participate, as a rural business investment company, in the program established under this subchapter, a company meeting the eligibility requirements of subsection (a) shall submit an application to the Secretary that includes—
(1)
a business plan describing how the company intends to make successful developmental capital investments in identified rural areas;
(2)
information regarding the community development finance or relevant venture capital qualifications and general reputation of the management of the company;
(3)
a description of how the company intends to work with community-based organizations and local entities (including local economic development companies, local lenders, and local investors) and to seek to address the unmet equity capital needs of the communities served;
(4)
a proposal describing how the company intends to use the grant funds provided under this subchapter to provide operational assistance to smaller enterprises financed by the company, including information regarding whether the company intends to use licensed professionals, as necessary, on the staff of the company or from an outside entity;
(5)
with respect to binding commitments to be made to the company under this subchapter, an estimate of the ratio of cash to in-kind contributions;
(6)
a description of the criteria to be used to evaluate whether and to what extent the company meets the purposes of the program established under this subchapter;
(c) Status
Not later than 90 days after the initial receipt by the Secretary of an application under this section, the Secretary shall provide to the applicant a written report describing the status of the application and any requirements remaining for completion of the application.
(d) Matters consideredIn reviewing and processing any application under this section, the Secretary—
(2) shall take into consideration—
(A)
the need for and availability of financing for rural business concerns in the geographic area in which the applicant is to commence business;
(3)
shall not take into consideration any projected shortage or unavailability of grant funds or leverage.
(e) Approval; license
(1) In generalExcept as provided in paragraph (2), the Secretary may approve an applicant to operate as a rural business investment company under this subchapter and license the applicant as a rural business investment company, if—
(B)
the area in which the rural business investment company is to conduct its operations, and establishment of branch offices or agencies (if authorized by the articles), are approved by the Secretary; and
(2) Capital requirements
(A) In generalNotwithstanding any other provision of this subchapter, the Secretary may approve an applicant to operate as a rural business investment company under this subchapter and designate the applicant as a rural business investment company, if the Secretary determines that the applicant—
(ii)
would otherwise be approved under this subchapter, except that the applicant does not satisfy the requirements of section 2009cc–8(c) of this title; and
(iii) has a viable business plan that—
(II)
has a reasonable timetable for achieving a level of private capital that satisfies the requirements of section 2009cc–8(c) of this title.
(B) Leverage
An applicant approved under subparagraph (A) shall not be eligible to receive leverage under this subchapter until the applicant satisfies the requirements of section 2009cc–8(c) of this title.
(C) Grants
An applicant approved under subparagraph (A) shall be eligible for grants under section 2009cc–7 of this title in proportion to the private capital of the applicant, as determined by the Secretary.
(Pub. L. 87–128, title III, § 384D, as added Pub. L. 107–171, title VI, § 6029, May 13, 2002, 116 Stat. 391; amended Pub. L. 115–334, title VI, § 6426(c), Dec. 20, 2018, 132 Stat. 4770.)