34 U.S.C. § 12202 — Emerging community development corporation revolving loan funds
submitted 32 years ago by Pub. L. 103-322 to r/title-34-CRIME-CONTROL-AND-LAW-ENFORCEMENT · 422 words · no verdicts yet
This section funds newer community development corporations, called emerging CDCs. Grants let them build revolving loan funds to help local businesses and create jobs. Each group can get up to five hundred thousand dollars a year, but must show local matching support.
This section has five lettered parts, (a) through (e).
(a) Authority. The Secretary can give grants to "emerging" community development corporations -- newer ones -- so they can set up, keep running, or grow revolving loan funds, make or guarantee loans, or make capital investments in new or growing local businesses.
(b) Eligibility. To get a grant, an entity must be a community development corporation* that has already completed one or two community economic development projects (or similar projects) that improved job opportunities for low-income people. It must submit an application with a strategic investment plan describing the target area's economy, the kinds of businesses it will help, and the plan's expected impact on low-income people. And it must have already lined up local matching support -- cash, in-kind contributions, or letters of credit or commitment -- worth at least 10 percent of what it's requesting.
(c) Use of revolving loan fund. Money from these funds can provide financial and technical assistance, loans, loan guarantees, or investments to private businesses, in order to fund projects that create business and job opportunities for low-income people and improve quality of life in urban and rural areas, and to help emerging community development corporations grow and better serve their communities' economic needs. The Secretary encourages grant recipients to get technical assistance from more established, experienced community development corporations, and must help make that assistance happen. No more than 10 percent of a grantee's funds can go toward training, technical assistance, or administration.
(d) Use of proceeds from investments. Money earned from these investments can only be used for the purposes described in this part, and must be reinvested back into the community that generated it.
(e) Amounts available. No community development corporation can get more than $500,000 per year under this section.
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.
To be eligible to receive a grant under subsection (a), an entity shall—
be a community development corporation*;
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;
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
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
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—
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
build and expand the capacity of emerging community development corporations and serve the economic needs of local residents.
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.
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.
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.
Amounts provided under this section to a community development corporation shall not exceed $500,000 per year.
Source credit: (Pub. L. 103–322, title III, § 31122, Sept. 13, 1994, 108 Stat. 1886.)
- 1994Enacted · Pub. L. 103-322 · 108 Stat. 1886
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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