§689g — Title 15 Commerce and Trade | U.S. Code

Summary

The Administrator can give grants to New Markets Venture Capital companies and similar groups to pay for hands-on help for small businesses they already fund or expect to fund. Grants can run for up to 10 years. Specialized small business investment companies can also get grants, but only for equity investments made with capital raised after the New Markets Venture Capital Program Act of 2000, and only for businesses in low-income geographic areas. Those companies must send the Administrator a plan for how they will use the money. Each grant is equal to the cash or in-kind resources the company raised under section 689c(d)(2). If there is not enough money, payments to each recipient are cut proportionally. The Administrator can also award extra, supplemental grants and may require the recipient to match that extra grant with their own cash or in-kind resources equal to the supplemental amount. None of the grant money can be used to pay the company’s overhead or general administrative costs.

Title 15, §689g

Commerce and Trade — Source: USLM XML via OLRC

(a)(1)In accordance with this section, the Administrator may make grants to New Markets Venture Capital companies and to other entities, as authorized by this part, to provide operational assistance to smaller enterprises financed, or expected to be financed, by such companies or other entities.

(2)Grants made under this subsection shall be made over a multiyear period not to exceed 10 years, under such other terms as the Administrator may require.

(3)(A)In accordance with this section, the Administrator may make grants to specialized small business investment companies to provide operational assistance to smaller enterprises financed, or expected to be financed, by such companies after the effective date of the New Markets Venture Capital Program Act of 2000.

(B)The proceeds of a grant made under this paragraph may be used by the company receiving such grant only to provide operational assistance in connection with an equity investment (made with capital raised after the effective date of the New Markets Venture Capital Program Act of 2000) in a business located in a low-income geographic area.

(C)A specialized small business investment company shall be eligible for a grant under this section only if the company submits to the Administrator, in such form and manner as the Administrator may require, a plan for use of the grant.

(4)(A)The amount of a grant made under this subsection to a New Markets Venture Capital company shall be equal to the resources (in cash or in kind) raised by the company under section 689c(d)(2) of this title.

(B)The amount of a grant made under this subsection to any entity other than a New Markets Venture Capital company shall be equal to the resources (in cash or in kind) raised by the entity in accordance with the requirements applicable to New Market Venture Capital companies set forth in section 689c(d)(2) of this title.

(5)If the amount made available to carry out this section is insufficient for the Administrator to provide grants in the amounts provided for in paragraph (4), the Administrator shall make pro rata reductions in the amounts otherwise payable to each company and entity under such paragraph.

(b)(1)The Administrator may make supplemental grants to New Markets Venture Capital companies and to other entities, as authorized by this part under such terms as the Administrator may require, to provide additional operational assistance to smaller enterprises financed, or expected to be financed, by the companies.

(2)The Administrator may require, as a condition of any supplemental grant made under this subsection, that the company or entity receiving the grant provide from resources (in a 11 So in original. The article probably should not appear. cash or in kind), other then 22 So in original. Probably should be “than”. those provided by the Administrator, a matching contribution equal to the amount of the supplemental grant.

(c)None of the assistance made available under this section may be used for any overhead or general and administrative expense of a New Markets Venture Capital company or a specialized small business investment company.

Editorial Notes

References in Text

The

Effective Date

of the New Markets Venture Capital Program Act of 2000, referred to in subsec. (a)(3)(A), (B), probably means the date of enactment of section 1 of H.R. 5663, as enacted by Pub. L. 106–554, § 1(a)(8), which was approved Dec. 21, 2000.

§689g Operational assistance grants

Summary

Title 15, §689g

Notes & Related Subsidiaries

Editorial Notes

References in Text

Effective Date

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