34 U.S.C. § 12184 — Availability of lines of credit and use
submitted 32 years ago by Pub. L. 103-322 to r/title-34-CRIME-CONTROL-AND-LAW-ENFORCEMENT · 317 words · no verdicts yet
The Secretary gives approved community development corporations a line of credit, capped at two million dollars. It normally lasts up to three years but can grow by 1.5 million more if used well. The money may support private businesses in target areas that meet the job-targeting requirements in section 12183(a)(4).
(a) Approval of application. Once the Secretary approves a community development corporation's application under section 12183, the Secretary gives it a line of credit. The Secretary decides the amount, within the limits set in subsection (b).
(b) Limitations on availability of amounts. No single applicant can get more than $2,000,000 in lines of credit under this subpart. A line of credit stays available for a period the Secretary sets, but never longer than 3 years from when it first becomes available. There's an exception: if a recipient has made full, productive use of its credit line, can show it needs and could use more, and still meets the requirements in section 12182(b)(2), the Secretary can increase the credit line by up to $1,500,000 more.
(c) Amounts drawn from line of credit. Money drawn from the credit line can only be used for the purposes in section 12181 -- and can only be drawn as it's actually needed, whether for loans and investments or for the administrative costs of setting up the revolving loan fund.
(d) Use of revolving loan funds. The revolving loan funds built with this credit can give technical assistance and financial help -- loans, loan guarantees, interest-reduction assistance, equity investments, and similar tools -- to private businesses in the target area*, as long as those businesses meet the job-targeting requirements in section 12183(a)(4).
The Secretary shall provide a community development corporation* that has an application approved under section 12183 of this title with a line of credit in an amount determined appropriate by the Secretary, subject to the limitations contained in subsection (b).
The Secretary shall not provide in excess of $2,000,000 in lines of credit under this subpart to a single applicant.
A line of credit provided under this subpart shall remain available over a period of time established by the Secretary, but in no event shall any such period of time be in excess of 3 years from the date on which such line of credit is made available.
Notwithstanding paragraphs (1) and (2), if a recipient of a line of credit under this subpart has made full and productive use of such line of credit, can demonstrate the need and demand for additional assistance, and can meet the requirements of section 12182(b)(2) of this title, the amount of such line of credit may be increased by not more than $1,500,000.
Amounts drawn from each line of credit under this subpart shall be used solely for the purposes described in section 12181 of this title and shall only be drawn down as needed to provide loans, investments, or to defray administrative costs related to the establishment of a revolving loan fund.
Revolving loan funds established with lines of credit provided under this subpart may be used to provide technical assistance to private business enterprises and to provide financial assistance in the form of loans, loan guarantees, interest reduction assistance, equity shares, and other such forms of assistance to business enterprises in target areas and who are in compliance with section 12183(a)(4) of this title.
Source credit: (Pub. L. 103–322, title III, § 31114, Sept. 13, 1994, 108 Stat. 1884.)
- 1994Enacted · Pub. L. 103-322 · 108 Stat. 1884
A history note hasn’t been published yet. The record shows enactment by Pub. L. 103-322 on 1994-09-13.
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