
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 15USC689]

 
                      TITLE 15--COMMERCE AND TRADE
 
             CHAPTER 14B--SMALL BUSINESS INVESTMENT PROGRAM
 
              SUBCHAPTER III--INVESTMENT DIVISION PROGRAMS
 
               Part B--New Markets Venture Capital Program
 
Sec. 689. Definitions

    In this part, the following definitions apply:

                  (1) Developmental venture capital

        The term ``developmental venture capital'' means capital in the 
    form of equity capital investments in businesses made with a primary 
    objective of fostering economic development in low-income geographic 
    areas. For the purposes of this paragraph, the term ``equity 
    capital'' has the same meaning given such term in section 683(g)(4) 
    of this title.

                      (2) Low-income individual

        The term ``low-income individual'' means an individual whose 
    income (adjusted for family size) does not exceed--
            (A) for metropolitan areas, 80 percent of the area median 
        income; and
            (B) for nonmetropolitan areas, the greater of--
                (i) 80 percent of the area median income; or
                (ii) 80 percent of the statewide nonmetropolitan area 
            median income.

                   (3) Low-income geographic area

        the \1\ term ``low-income geographic area'' means--
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    \1\ So in original. Probably should be capitalized.
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            (A) any population census tract (or in the case of an area 
        that is not tracted for population census tracts, the equivalent 
        county division, as defined by the Bureau of the Census of the 
        Department of Commerce for purposes of defining poverty areas), 
        if--
                (i) the poverty rate for that census tract is not less 
            than 20 percent;
                (ii) in the case of a tract--
                    (I) that is located within a metropolitan area, 50 
                percent or more of the households in that census tract 
                have an income equal to less than 60 percent of the area 
                median gross income; or
                    (II) that is not located within a metropolitan area, 
                the median household income for such tract does not 
                exceed 80 percent of the statewide median household 
                income; or

                (iii) as determined by the Administrator based on 
            objective criteria, a substantial population of low-income 
            individuals reside, an inadequate access to investment 
            capital exists, or other indications of economic distress 
            exist in that census tract; or

            (B) any area located within--
                (i) a HUBZone (as defined in section 632(p) of this 
            title and the implementing regulations issued under that 
            section);
                (ii) an urban empowerment zone or urban enterprise 
            community (as designated by the Secretary of Housing and 
            Urban Development); or
                (iii) a rural empowerment zone or rural enterprise 
            community (as designated by the Secretary of Agriculture).

               (4) New Markets Venture Capital company

        The term ``New Markets Venture Capital company'' means a company 
    that--
            (A) has been granted final approval by the Administrator 
        under section 689c(e) of this title; and
            (B) has entered into a participation agreement with the 
        Administrator.

                     (5) Operational assistance

        The term ``operational assistance'' means management, marketing, 
    and other technical assistance that assists a small business concern 
    with business development.

                     (6) Participation agreement

        The term ``participation agreement'' means an agreement, between 
    the Administrator and a company granted final approval under section 
    689c(e) of this title, that--
            (A) details the company's operating plan and investment 
        criteria; and
            (B) requires the company to make investments in smaller 
        enterprises at least 80 percent of which are located in low-
        income geographic areas.

          (7) Specialized small business investment company

        The term ``specialized small business investment company'' means 
    any small business investment company that--
            (A) invests solely in small business concerns that 
        contribute to a well-balanced national economy by facilitating 
        ownership in such concerns by persons whose participation in the 
        free enterprise system is hampered because of social or economic 
        disadvantages;
            (B) is organized or chartered under State business or 
        nonprofit corporations statutes, or formed as a limited 
        partnership; and
            (C) was licensed under section 681(d) of this title, as in 
        effect before September 30, 1996.

                              (8) State

        The term ``State'' means such of the several States, the 
    District of Columbia, the Commonwealth of Puerto Rico, the Virgin 
    Islands, Guam, American Samoa, the Commonwealth of the Northern 
    Mariana Islands, and any other commonwealth, territory, or 
    possession of the United States.

(Pub. L. 85-699, title III, Sec. 351, as added Pub. L. 106-554, 
Sec. 1(a)(8) [Sec. 1(b)(3)], Dec. 21, 2000, 114 Stat. 2763, 2763A-653.)

                  Section Referred to in Other Sections

    This section is referred to in section 683 of this title; title 11 
section 109; title 12 section 1464.
