§2009cc–7 Operational Assistance Grants

Summary

The Secretary can give grants to rural business investment companies (RBICs) and to other approved groups to pay for operational help for small businesses they finance or plan to finance. Grants are paid over several years but cannot last more than 10 years. To get a grant, an RBIC must send the Secretary a plan that explains how the money will be used, in the form the Secretary requires. Grant money may only be used for operational help tied to an equity or planned equity investment in a business located in a rural area. For RBICs, the grant amount is the smaller of 10 percent of the private capital the RBIC raised or $1,000,000. For other eligible groups, the grant equals the resources they raise (cash or in kind) under the same rules that apply to RBICs.