PRIA, Government Policy, Made Personal

Summary

Defines key words used in the chapter. Each listed term is given a short meaning so people know how the Program works. "Appropriate committees of Congress" means certain Senate and House committees (for example, those handling small business, agriculture, banking/financial matters, budget, and appropriations). "Appropriate Federal banking agency" means the federal bank regulator named in law and also includes the NCUA Board for insured credit unions. "Enrolled loan" means a loan a lender signs up for a State capital access program approved under this chapter. "Federal contribution" means the part of a State’s contribution that comes from federal funds given under section 5702. "Financial institution" means insured banks, insured credit unions, or community development financial institutions (see section 4702). "Participating State" means a State approved to join the Program under section 5703. "Program" means the State Small Business Credit Initiative. "Qualifying loan or swap funding facility" means a contract where a State gives collateral to a private entity, the entity provides funding back to the State, and the net funds (after fees) go to an approved State program. "Reserve fund" means a State-held fund for a specific lender that holds premiums from lenders and borrowers, State (including federal) contributions, and is used to cover losses on enrolled loans. "State" includes U.S. States, DC and U.S. territories, certain local governments when allowed, and Tribal governments or groups applying together. "State capital access program" and "State other credit support program" are State programs that use public money to help private access to credit, with each type meeting its own eligibility rules; "other" programs include collateral support, loan participation, State venture capital, and guarantee programs. "State program" means either of those two program types. "Secretary" means the Secretary of the Treasury. "Business enterprise owned and controlled by socially and economically disadvantaged individuals" means a business that is at least 51 percent owned or controlled by such individuals, with special rules for mutual institutions. "Community development financial institution" and "minority depository institution" have the meanings given in the cited laws. "Socially and economically disadvantaged individual" means a person defined as socially disadvantaged or economically disadvantaged under section 637 of title 15. "Tribal government" means a recognized tribal governing body listed most recently as of March 11, 2021, under section 5131 of title 25.

Title 12, §5701

Banks and Banking, Source: USLM XML via OLRC

In this chapter, the following definitions shall apply:

(1)Appropriate committees of Congress

The term “appropriate committees of Congress” means—

(A)the Committee on Small Business and Entrepreneurship, the Committee on Agriculture, Nutrition, and Forestry, the Committee on Banking, Housing, and Urban Affairs, the Committee on Finance, the Committee on the Budget, and the Committee on Appropriations of the Senate; and

(B)the Committee on Small Business, the Committee on Agriculture, the Committee on Financial Services, the Committee on Ways and Means, the Committee on the Budget, and the Committee on Appropriations of the House of Representatives.

(2)Appropriate Federal banking agency

The term “appropriate Federal banking agency”—

(A)has the same meaning as in section 1813(q) of this title; and

(B)includes the National Credit Union Administration Board in the case of any credit union the deposits of which are insured in accordance with the Federal Credit Union Act [12 U.S.C. 1751 et seq.].

(3)Enrolled loan

The term “enrolled loan” means a loan made by a financial institution lender that is enrolled by a participating State in an approved State capital access program in accordance with this chapter.

(4)Federal contribution

The term “Federal contribution” means the portion of the contribution made by a participating State to, or for the account of, an approved State program that is made with Federal funds allocated to the State by the Secretary under section 5702 of this title.

(5)Financial institution

The term “financial institution” means any insured depository institution, insured credit union, or community development financial institution, as those terms are each defined in section 4702 of this title.

(6)Participating State

The term “participating State” means any State that has been approved for participation in the Program under section 5703 of this title.

(7)Program

The term “Program” means the State Small Business Credit Initiative established under this chapter.

(8)Qualifying loan or swap funding facility

The term “qualifying loan or swap funding facility” means a contractual arrangement between a participating State and a private financial entity under which—

(A)the participating State delivers funds to the entity as collateral;

(B)the entity provides funding from the arrangement back to the participating State; and

(C)the full amount of resulting funding from the arrangement, less any fees and other costs of the arrangement, is contributed to, or for the account of, an approved State program.

(9)Reserve fund

The term “reserve fund” means a fund, established by a participating State, dedicated to a particular financial institution lender, for the purposes of— (A)

(B)depositing contributions made by the participating State, including State contributions made with Federal contributions; and

(C)covering losses on enrolled loans by disbursing accumulated funds.

(10)State

The term “State” means—

(A)a State of the United States;

(B)the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of Northern Mariana Islands, Guam, American Samoa, and the United States Virgin Islands;

(C)when designated by a State of the United States, a political subdivision of that State that the Secretary determines has the capacity to participate in the Program;

(D)under the circumstances described in section 5703(d) of this title, a municipality of a State of the United States to which the Secretary has given a special permission under section 5703(d) of this title; and

(E)a Tribal government, or a group of Tribal governments that jointly apply for an allocation.

(11)State capital access program

The term “State capital access program” means a program of a State that—

(A)uses public resources to promote private access to credit; and

(B)meets the eligibility criteria in section 5704(c) of this title.

(12)State other credit support program

The term “State other credit support program”—

(A)means a program of a State that—

(i)uses public resources to promote private access to credit;

(ii)is not a State capital access program; and

(iii)meets the eligibility criteria in section 5705(c) of this title; and

(B)includes, collateral support programs, loan participation programs, State-run venture capital fund programs, and credit guarantee programs.

(13)State program

The term “State program” means a State capital access program or a State other credit support program.

(14)Secretary

The term “Secretary” means the Secretary of the Treasury.

(15)Business enterprise owned and controlled by socially and economically disadvantaged individuals

The term “business enterprise owned and controlled by socially and economically disadvantaged individuals” means a business that—

(A)if privately owned, 51 percent is owned by one or more socially and economically disadvantaged individuals;

(B)if publicly owned, 51 percent of the stock is owned by one or more socially and economically disadvantaged individuals; and

(C)in the case of a mutual institution, a majority of the Board of Directors, account holders, and the community which the institution services is predominantly comprised of socially and economically disadvantaged individuals.

(16)Community development financial institution

The term “community development financial institution” has the meaning given that term under section 4702 of this title.

(17)Minority depository institution

The term “minority depository institution” has the meaning given that term under section 308(b) of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989.

(18)Socially and economically disadvantaged individual

The term “socially and economically disadvantaged individual” means an individual who is a socially disadvantaged individual or an economically disadvantaged individual, as such terms are defined, respectively, under section 637 of title 15 and the regulations thereunder.

(19)Tribal government

The term “Tribal government” means the recognized governing body of any Indian or Alaska Native tribe, band, nation, pueblo, village, community, component band, or component reservation, individually identified (including parenthetically) in the list published most recently as of March 11, 2021, pursuant to section 5131 of title 25.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Federal Credit Union Act, referred to in par. (2)(B), is act June 26, 1934, ch. 750, 48 Stat. 1216, which is classified principally to chapter 14 (§ 1751 et seq.) of this title. For complete classification of this Act to the Code, see section 1751 of this title and Tables. section 308(b) of the Financial Institutions Reform, Recovery, and

Enforcement

Act of 1989, referred to in par. (17), is section 308(b) of Pub. L. 101–73, which is set out in a note under section 1463 of this title.

Amendments

2021—Par. (10)(E). Pub. L. 117–2, § 3301(e), added subpar. (E). Pars. (15) to (19). Pub. L. 117–2, § 3301(f), added pars. (15) to (19).

Statutory Notes and Related Subsidiaries

Effective Date

of 2021 Amendment Pub. L. 117–2, title III, § 3301(g), Mar. 11, 2021, 135 Stat. 72, provided that: “The

Amendments

made by this section [amending this section and sections 5702 to 5706, 5708, and 5710 of this title and enacting provisions set out as a note below] shall apply with respect to funds appropriated under this section and funds appropriated on and after the date of enactment of this section [Mar. 11, 2021].”

Short Title

Pub. L. 111–240, title III, § 3001, Sept. 27, 2010, 124 Stat. 2568, provided that: “This title [enacting this chapter] may be cited as the ‘State Small Business Credit Initiative Act of 2010’.” Appropriation Pub. L. 117–2, title III, § 3301(a)(2), Mar. 11, 2021, 135 Stat. 69, provided that: “(A) In general.—In addition to amounts otherwise available, there is hereby appropriated to the Secretary of the Treasury for fiscal year 2021, out of any money in the Treasury not otherwise appropriated, $10,000,000,000, to remain available until expended, to provide support to small businesses responding to and recovering from the economic effects of the COVID–19 pandemic, ensure business enterprises owned and controlled by socially and economically disadvantaged individuals have access to credit and investments, provide technical assistance to help small businesses applying for various support programs, and to pay reasonable costs of administering such Initiative. “(B) Rescission.—With respect to amounts appropriated under subparagraph (A)—“(i) the Secretary of the Treasury shall complete all disbursements and remaining obligations before

September 30, 2030; and “(ii) any amounts that remain unexpended (whether obligated or unobligated) on

September 30, 2030, shall be rescinded and deposited into the general fund of the Treasury.”

§5701 Definitions

Summary

Title 12, §5701

Notes & Related Subsidiaries

Editorial Notes

References in Text

Enforcement

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Amendments

Short Title

Citations & Metadata