§12202 Emerging community development corporation revolving loan funds

Summary

The federal government can give grants to emerging community development corporations to help them set up, grow, or run revolving loan funds, to make or back loans, or to invest in new or growing local businesses. To get a grant, a group must be a community development corporation, have finished one or two projects that helped low-income people get jobs, file an application with a strategic investment plan describing the area, the businesses to be helped, and the expected impact on low-income residents, and have local commitments worth at least 10 percent of the amount requested. Money from these grants can be used to give financial and technical help, loans, loan guarantees, or investments that create jobs for low-income people and improve local life, and to build the capacity of the new corporations. The agency will help and encourage grantees to get advice from experienced community development corporations. No more than 10 percent of a grant may pay for training, technical help, or administration. Any earnings must be used only for these purposes and reinvested in the same community. Grants cannot be more than $500,000 per year to any one corporation.