
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: 15USC689g]

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


(a) In general

                            (1) Authority

        In accordance with this section, the Administrator may make 
    grants to New Markets Venture Capital companies and to other 
    entities, as authorized by this part, to provide operational 
    assistance to smaller enterprises financed, or expected to be 
    financed, by such companies or other entities.

                              (2) Terms

        Grants made under this subsection shall be made over a multiyear 
    period not to exceed 10 years, under such other terms as the 
    Administrator may require.

        (3) Grants to specialized small business investment 
                                  companies

        (A) Authority

            In accordance with this section, the Administrator may make 
        grants to specialized small business investment companies to 
        provide operational assistance to smaller enterprises financed, 
        or expected to be financed, by such companies after the 
        effective date of the New Markets Venture Capital Program Act of 
        2000.

        (B) Use of funds

            The proceeds of a grant made under this paragraph may be 
        used by the company receiving such grant only to provide 
        operational assistance in connection with an equity investment 
        (made with capital raised after the effective date of the New 
        Markets Venture Capital Program Act of 2000) in a business 
        located in a low-income geographic area.

        (C) Submission of plans

            A specialized small business investment company shall be 
        eligible for a grant under this section only if the company 
        submits to the Administrator, in such form and manner as the 
        Administrator may require, a plan for use of the grant.

                          (4) Grant amount

        (A) New Markets Venture Capital companies

            The amount of a grant made under this subsection to a New 
        Markets Venture Capital company shall be equal to the resources 
        (in cash or in kind) raised by the company under section 
        689c(d)(2) of this title.

        (B) Other entities

            The amount of a grant made under this subsection to any 
        entity other than a New Markets Venture Capital company shall be 
        equal to the resources (in cash or in kind) raised by the entity 
        in accordance with the requirements applicable to New Market 
        Venture Capital companies set forth in section 689c(d)(2) of 
        this title.

                       (5) Pro rata reductions

        If the amount made available to carry out this section is 
    insufficient for the Administrator to provide grants in the amounts 
    provided for in paragraph (4), the Administrator shall make pro rata 
    reductions in the amounts otherwise payable to each company and 
    entity under such paragraph.

(b) Supplemental grants

                           (1) In general

        The Administrator may make supplemental grants to New Markets 
    Venture Capital companies and to other entities, as authorized by 
    this part under such terms as the Administrator may require, to 
    provide additional operational assistance to smaller enterprises 
    financed, or expected to be financed, by the companies.

                      (2) Matching requirement

        The Administrator may require, as a condition of any 
    supplemental grant made under this subsection, that the company or 
    entity receiving the grant provide from resources (in a \1\ cash or 
    in kind), other then those provided by the Administrator, a matching 
    contribution equal to the amount of the supplemental grant.
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    \1\ So in original. The article probably should not appear.
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(c) Limitation

    None of the assistance made available under this section may be used 
for any overhead or general and administrative expense of a New Markets 
Venture Capital company or a specialized small business investment 
company.

(Pub. L. 85-699, title III, Sec. 358, as added Pub. L. 106-554, 
Sec. 1(a)(8) [Sec. 1(b)(3)], Dec. 21, 2000, 114 Stat. 2763, 2763A-660.)

                       References in Text

    The effective date of the New Markets Venture Capital Program Act of 
2000, referred to in subsec. (a)(3)(A), (B), probably means the date of 
enactment of section 1 of H.R. 5663, as enacted by Pub. L. 106-554, 
Sec. 1(a)(8), which was approved Dec. 21, 2000.

                  Section Referred to in Other Sections

    This section is referred to in section 689b of this title.
