
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 7USC2009n]

 
                          TITLE 7--AGRICULTURE
 
                     CHAPTER 50--AGRICULTURAL CREDIT
 
            SUBCHAPTER V--RURAL COMMUNITY ADVANCEMENT PROGRAM
 
Sec. 2009n. Rural venture capital demonstration program


(a) In general

    The Secretary may designate for each fiscal year up to 10 community 
development venture capital organizations to demonstrate the utility of 
guarantees to attract increased private investment in rural private 
business enterprises.

(b) Rural business investment pool

                          (1) Establishment

        To be eligible to participate in the demonstration program, an 
    organization referred to in subsection (a) of this section shall 
    establish a rural business private investment pool (referred to in 
    this subsection as a ``pool'') for the purpose of making equity 
    investments in rural private business enterprises.

                            (2) Guarantee

        From amounts in the national reserve account of the Trust Fund, 
    the Secretary shall guarantee the funds in a pool against loss, 
    except that the guarantee shall not exceed an amount equal to 30 
    percent of the total funds in the pool.

                             (3) Amount

        The Secretary shall issue guarantees covering not more than 
    $15,000,000 of contingent liabilities for each of fiscal years 1996 
    through 2002.

                              (4) Term

        The term of a guarantee provided under this subsection shall not 
    exceed 10 years.

                       (5) Submission of plan

        To be eligible to participate in the demonstration program, an 
    organization referred to in subsection (a) of this section shall 
    submit a plan that describes--
            (A) potential sources and uses of the pool to be established 
        by the organization;
            (B) the utility of the guarantee authority in attracting 
        capital for the pool; and
            (C) on selection, mechanisms for notifying State, local, and 
        private nonprofit business development organizations and 
        businesses of the existence of the pool.

                           (6) Competition

        (A) In general

            The Secretary shall conduct a competition for the 
        designation and establishment of pools.

        (B) Priority

            In conducting the competition, the Secretary shall give 
        priority to organizations that--
                (i) have a demonstrated record of performance, or have a 
            board and executive director with experience, in venture 
            capital, small business equity investment, or community 
            development finance;
                (ii) propose to serve low-income communities;
                (iii) propose to maintain an average investment of not 
            more than $500,000 from the pool of the organization;
                (iv) invest funds statewide or in a multicounty region; 
            and
                (v) propose to target job opportunities resulting from 
            the investments primarily to economically disadvantaged 
            individuals, as determined by the Secretary.

        (C) Geographic diversity

            To the extent practicable, the Secretary shall designate 
        organizations in diverse geographic areas.

(Pub. L. 87-128, title III, Sec. 381O, as added Pub. L. 104-127, title 
VII, Sec. 761, Apr. 4, 1996, 110 Stat. 1147.)
