§12185 — Title 34 Navy | U.S. Code

§12185 Limitations on Use of Funds

Title 34 › Subtitle Subtitle I— Comprehensive Acts › Chapter 121— VIOLENT CRIME CONTROL AND LAW ENFORCEMENT › Subchapter II— CRIME PREVENTION › Part E— National Community Economic Partnership › Subpart 1— community economic partnership investment funds › § 12185

Last updated Apr 5, 2026|Official source

Summary

No more than 50% of what an organization invests under this program can come from a line of credit provided by the program. No more than 10% of the credit amounts may be used for training, technical help, or for planning, developing, and managing local economic projects. Community development corporations (CDCs) should get help from other experienced CDCs, and the Secretary must help find that help. To use line-of-credit money, an organization must show the CDC it will provide the local and private contributions required by section 12182(b)(2)(D), join the CDC in a loan, guarantee, or investment for a chosen business, and commit at least as much money as it plans to draw. Any gains from investments made with these program funds may only be used for the purposes listed in section 12181 and must be reinvested in the community where they were made.

Title 34, §12185

Navy — Source: USLM XML via OLRC

(a)Not to exceed 50 percent of the total amount to be invested by an entity under this subpart may be derived from funds made available from a line of credit under this subpart.

(b)Not to exceed 10 percent of the amounts available from a line of credit under this subpart shall be used for the provision of training or technical assistance and for the planning, development, and management of economic development projects. Community development corporations shall be encouraged by the Secretary to seek technical assistance from other community development corporations, with expertise in the planning, development and management of economic development projects. The Secretary shall assist in the identification and facilitation of such technical assistance.

(c)To receive funds available under a line of credit provided under this subpart, an entity, using procedures established by the Secretary, shall demonstrate to the community development corporation that such entity agrees to provide local and private sector contributions in accordance with section 12182(b)(2)(D) of this title, will participate with such community development corporation in a loan, guarantee or investment program for a designated business enterprise, and that the total financial commitment to be provided by such entity is at least equal to the amount to be drawn from the line of credit.

(d)Proceeds derived from investments made using funds made available under this subpart may be used only for the purposes described in section 12181 of this title and shall be reinvested in the community in which they were generated.

Editorial Notes

Codification Section was formerly classified to section 13825 of Title 42, The Public Health and Welfare, prior to editorial reclassification and renumbering as this section.

§12185 Limitations on Use of Funds

Summary

Title 34, §12185

Notes & Related Subsidiaries

Editorial Notes

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