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Title 34, NavyRelease 119-110

§12202 Emerging Community Development Corporation Revolving Loan Funds

Title 34 › Subtitle I — Comprehensive Acts › CHAPTER 121 — VIOLENT CRIME CONTROL AND LAW ENFORCEMENT › SUBCHAPTER II — CRIME PREVENTION › Part E — National Community Economic Partnership › subpart 2 — emerging community development corporations › § 12202

Last updated Sep 23, 2026|Official source

Summary

The Secretary can give grants to new community development corporations so they can set up, run, or grow revolving loan funds, make or back loans, or invest in local businesses. To get a grant, a group must be a community development corporation; have finished 1 or 2 community economic development projects that helped low-income people; send an application with a strategic investment plan that describes the target area, the kinds of businesses to help, and the expected impact; and have local commitments worth at least 10% of the amount requested. The loan fund money can be used for financial or technical help, loans, loan guarantees, or investments that create jobs for low-income people, improve local life, and strengthen the corporation’s capacity. The Secretary will encourage grantees to get help from experienced organizations. No more than 10% of a grant may pay for training, technical help, or administration. Returns from investments must be used for the same program and put back into the community where they came from. A group cannot get more than $500,000 in a year.

Full Legal Text

Title 34, §12202

Navy, Source: USLM XML via OLRC

(a)Authority
The Secretary may award grants to emerging community development corporations to enable such corporations to establish, maintain or expand revolving loan funds, to make or guarantee loans, or to make capital investments in new or expanding local businesses.
(b)Eligibility
To be eligible to receive a grant under subsection (a), an entity shall—
(1)be a community development corporation;
(2)have completed not less than one nor more than two community economic development projects or related projects that improve or provide job and employment opportunities to low-income individuals;
(3)prepare and submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require, including a strategic investment plan that identifies and describes the economic characteristics of the target area to be served, the types of business to be assisted using amounts received under the grant and the impact of such assistance on low-income individuals; and
(4)have secured one or more commitments from local sources for contributions (either in cash or in kind, letters of credit, or letters of commitment) in an amount that is equal to at least 10 percent of the amounts requested in the application submitted under paragraph (2).
(c)Use of revolving loan fund
(1)In general
A revolving loan fund established or maintained with amounts received under this section may be utilized to provide financial and technical assistance, loans, loan guarantees or investments to private business enterprises to—
(A)finance projects intended to provide business and employment opportunities for low-income individuals and to improve the quality of life in urban and rural areas; and
(B)build and expand the capacity of emerging community development corporations and serve the economic needs of local residents.
(2)Technical assistance
The Secretary shall encourage emerging community development corporations that receive grants under this section to seek technical assistance from established community development corporations, with expertise in the planning, development and management of economic development projects and shall facilitate the receipt of such assistance.
(3)Limitation
Not to exceed 10 percent of the amounts received under this section by a grantee shall be used for training, technical assistance and administrative purposes.
(d)Use of proceeds from investments
Proceeds derived from investments made with amounts provided under this section may be utilized only for the purposes described in this part and shall be reinvested in the community in which they were generated.
(e)Amounts available
Amounts provided under this section to a community development corporation shall not exceed $500,000 per year.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Codification Section was formerly classified to section 13842 of Title 42, The Public Health and Welfare, prior to editorial reclassification and renumbering as this section.

Reference

Citations & Metadata

Citation

34 U.S.C. § 12202

Title 34, Navy

Last Updated

Sep 23, 2026

Release point: 119-110