§689g Operational Assistance Grants

Summary

The Administrator can give grants to New Markets Venture Capital companies and other approved groups to pay for hands-on help for small businesses they fund or plan to fund. Grants can last for several years but not more than 10 years and must follow any conditions the Administrator sets. The grant amount for a New Markets Venture Capital company equals the cash or in-kind resources it raised under section 689c(d)(2). Other entities get grants equal to the resources they raised that meet the same rules. If there is not enough money, the Administrator must cut each grant proportionally. The Administrator may also award extra supplemental grants for more help. The Administrator may require recipients to match a supplemental grant with their own cash or in-kind contribution equal to the grant. Specialized small business investment companies can get grants only after the effective date of the New Markets Venture Capital Program Act of 2000, must give a plan to the Administrator, and can use the money only for help tied to equity investments made with capital raised after that date in businesses in low-income areas. No grant money may pay for the recipient’s overhead or general administrative costs.