34 U.S.C. § 12185 — Limitations on use of funds
submitted 32 years ago by Pub. L. 103-322 to r/title-34-CRIME-CONTROL-AND-LAW-ENFORCEMENT · 267 words · no verdicts yet
This section limits how community groups can use their line of credit. At most half the money invested can come from the credit line; the rest must come from elsewhere. Groups can spend up to ten percent on training and must reinvest profits locally.
(a) Matching requirement. No more than 50 percent of the total amount a community development corporation* invests can come from its line of credit under this subpart. The rest has to come from somewhere else.
(b) Technical assistance and administration. No more than 10 percent of the amounts drawn from a line of credit can go toward training, technical assistance, or the planning, development, and management of economic development projects. The Secretary encourages corporations to seek technical help from other, more experienced community development corporations, and must help connect them with that help.
(c) Local and private sector contributions. Before drawing money from its line of credit, an entity must show the community development corporation that it will provide local and private-sector contributions as required under section 12182(b)(2)(D), that it will join the corporation in a loan, guarantee, or investment program for a specific business, and that its total financial commitment is at least as large as the amount it's drawing.
(d) Use of proceeds from investments. Money made from investments funded this way can only be used for the purposes described in section 12181, and it must be reinvested back into the community that generated it.
Not to exceed 50 percent of the total amount to be invested by an entity under this subpart may be derived from funds made available from a line of credit under this subpart.
Not to exceed 10 percent of the amounts available from a line of credit under this subpart shall be used for the provision of training or technical assistance and for the planning, development, and management of economic development projects. Community development corporations shall be encouraged by the Secretary to seek technical assistance from other community development corporations, with expertise in the planning, development and management of economic development projects. The Secretary shall assist in the identification and facilitation of such technical assistance.
To receive funds available under a line of credit provided under this subpart, an entity, using procedures established by the Secretary, shall demonstrate to the community development corporation* that such entity agrees to provide local and private sector contributions in accordance with section 12182(b)(2)(D) of this title, will participate with such community development corporation in a loan, guarantee or investment program for a designated business enterprise, and that the total financial commitment to be provided by such entity is at least equal to the amount to be drawn from the line of credit.
Proceeds derived from investments made using funds made available under this subpart may be used only for the purposes described in section 12181 of this title and shall be reinvested in the community in which they were generated.
Source credit: (Pub. L. 103–322, title III, § 31115, 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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