
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: 7USC5905]

 
                          TITLE 7--AGRICULTURE
 
                          CHAPTER 88--RESEARCH
 
 SUBCHAPTER VI--ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION
 
Sec. 5905. Commercialization assistance


(a) Assistance authorized

    The Corporation, at the discretion of the Corporate Board, may 
provide to entities described in subsection (b) of this section for 
projects commercializing new nonfood, nonfeed products using 
agricultural commodities, financial assistance in the form of--
        (1) loans made or insured by the Corporation;
        (2) interest subsidy payments made by the Corporation (pursuant 
    to an agreement between the Corporation, the lender, and the 
    borrower) to the lender in amounts determined pursuant to the 
    agreement;
        (3) venture capital invested by the Corporation in the form of a 
    convertible debenture; and
        (4) repayable grants that are matched by private or local public 
    funds and that are repaid as agreed in a contract between the 
    Corporation and the entity.

(b) Eligible entities

    To obtain financial assistance for commercialization of nonfood, 
nonfeed products from the Corporation, an entity shall be a university 
or other institution of higher education, a nonprofit organization, a 
cooperative, or a business concern.

(c) Application requirements

                  (1) Filed with Executive Director

        To obtain financial assistance from the Corporation under this 
    section, an eligible entity shall file an application with the 
    Executive Director.

                            (2) Contents

        An application submitted to the Executive Director under 
    paragraph (1) shall--
            (A) describe the proposal of the entity for the 
        commercialization of a new product consistent with this section, 
        including documentation that such proposal is--
                (i) scientifically sound;
                (ii) technologically feasible; and
                (iii) marketable;

            (B) provide documentation that adequate private sector 
        funding is not available, but that the applicant has the ability 
        to obtain matching funds from the public or private sectors;
            (C) provide documentation that the applicant has invested in 
        the project a significant amount of the applicant's own 
        resources, including time and money;
            (D) provide documentation that the product or process has 
        broad application and has the potential to be commercially 
        viable without continual assistance;
            (E) provide documentation that the proposal has broad 
        participation by representatives of the public sector, the 
        financial community, the private business community, State and 
        local governments, educational institutions, the farm community, 
        the science and engineering communities;
            (F) provide documentation that an established relationship 
        exists between the applicant and other entities to give the 
        applicant access to private business assistance;
            (G) provide assurances of legal compliance by the applicant 
        with the terms and conditions of the receipt of assistance under 
        this section; and
            (H) provide assurances that the project will result in the 
        creation of new jobs in rural communities.

(d) Priorities

    The Corporate Board shall give priority to--
        (1) applications that shall create jobs in economically 
    distressed rural areas;
        (2) applications that have State or local government financial 
    participation; and
        (3) applications that have private financial participation.

(e) Additional criteria

    The Corporate Board shall establish additional criteria for use in 
selecting among equivalent applications. Such criteria shall emphasize--
        (1) the quantity and quality of jobs that are likely to be 
    created in rural communities;
        (2) the amount of the financial participation by State or local 
    governments or private entities;
        (3) the qualifications of the management to be used in the 
    project;
        (4) the potential market demand for the potential product to be 
    marketed proportional to the financial assistance requested; and
        (5) the likely level of returns to the Fund and the items 
    described in paragraphs (2), (6), (8), and (9) of section 5904(c) of 
    this title.

(Pub. L. 101-624, title XVI, Sec. 1661, Nov. 28, 1990, 104 Stat. 3762; 
Pub. L. 104-127, title VII, Sec. 725, Apr. 4, 1996, 110 Stat. 1119.)


                               Amendments

    1996--Subsec. (a). Pub. L. 104-127, Sec. 725(1), (2), substituted 
``Corporation'' for ``Center'' wherever appearing and substituted 
``Corporate Board'' for ``Board'' in introductory provisions.
    Subsec. (b). Pub. L. 104-127, Sec. 725(1), substituted 
``Corporation'' for ``Center''.
    Subsec. (c). Pub. L. 104-127, Sec. 725(3), (4), redesignated subsec. 
(d) as (c) and struck out former subsec. (c) which provided for 
appointment of Advisory Council to advise Board and Regional Centers 
concerning applications for assistance submitted under this section.
    Pub. L. 104-127, Sec. 725(1), (5), substituted ``Corporation'' for 
``Center'' in par. (1) and ``Executive Director'' for ``Director'' in 
par. (1) heading and text and introductory provisions of par. (2).
    Subsecs. (d) to (f). Pub. L. 104-127, Sec. 725(2), (4), redesignated 
subsecs. (e) and (f) as (d) and (e), respectively, and substituted 
``Corporate Board'' for ``Board''.

                  Section Referred to in Other Sections

    This section is referred to in sections 5902, 5903, 5906, 5907, 
5908, 5909 of this title.
