§12185 Limitations on Use of Funds

Summary

An entity may get no more than 50% of its total investment from a line of credit under this program. No more than 10% of line-of-credit funds can be used for training, technical help, or for planning, developing, and managing economic development projects. Community development corporations should seek help from other experienced corporations, and the Secretary will help find and set up that help. To draw funds, an entity must show the community development corporation, under the Secretary’s rules, that it will provide the required local and private contributions (see section 12182(b)(2)(D)), will join the corporation in a loan, guarantee, or investment for the designated business, and that its total money commitment equals at least the amount drawn. Any returns from investments made with these funds may only be used for the purposes in section 12181 and must be reinvested in the community where they came from.