§689 Definitions

Summary

Defines key words used in this part of the law. Developmental venture capital means equity investments made mainly to help low-income areas grow. Low-income individual means a person whose income, adjusted for family size, does not exceed 80 percent of the area median income in metropolitan areas, and in nonmetropolitan areas is the greater of 80 percent of the area median or 80 percent of the statewide nonmetropolitan median. Low-income geographic area means a census tract (or similar area) that meets tests like a poverty rate of at least 20 percent, or in metro tracts where 50 percent or more of households earn less than 60 percent of area median gross income, or in nonmetro tracts where median household income is 80 percent or less of the statewide median, or other signs of economic distress; it also includes HUBZones and designated urban or rural empowerment/enterprise zones. New Markets Venture Capital company means a company that the Administrator has finally approved and that has a participation agreement with the Administrator. Operational assistance means management, marketing, and other technical help for small businesses. Participation agreement means the contract with the Administrator that sets an operating plan and investment rules and requires that at least 80 percent of investments go to smaller firms in low-income geographic areas. Specialized small business investment company means a company that invests only in small businesses that expand ownership for people facing social or economic disadvantage, is formed under state business or nonprofit laws or as a limited partnership, and was licensed before September 30, 1996. State includes the several States, the District of Columbia, Puerto Rico, the Virgin Islands, Guam, American Samoa, the Northern Mariana Islands, and any other U.S. commonwealth, territory, or possession.