
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC13842]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
         CHAPTER 136--VIOLENT CRIME CONTROL AND LAW ENFORCEMENT
 
                     SUBCHAPTER II--CRIME PREVENTION
 
             Part G--National Community Economic Partnership
 
         subpart 2--emerging community development corporations
 
Sec. 13842. Emerging community development corporation revolving 
        loan funds
        

(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) of this 
section, 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).\1\
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    \1\ So in original. Probably should be paragraph ``(3)''.
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(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.

(Pub. L. 103-322, title III, Sec. 31122, Sept. 13, 1994, 108 Stat. 
1886.)

                  Section Referred to in Other Sections

    This section is referred to in section 14214 of this title.
