Page:United States Statutes at Large Volume 105 Part 1.djvu/856

 105 STAT. 828 PUBLIC LAW 102-140—OCT. 28, 1991 "(2) ELIGIBILITY FOR PARTICIPATION.— An intermediary shall be eligible to receive loans and grants under subparagraphs (B)(i) and (B)(ii) of paragraph (1) if it— "(A) meets the definition in paragraph (10); and "(B) has at least 1 year of experience making microloans to startup, newly established, or growing small business concerns and providing, as an integral part of its microloan program, intensive marketing, management, and technical assistance to its borrowers. "(3) LOANS TO INTERMEDIARIES. — ^ "(A) INTERMEDIARY APPLICATIONS.— As part of its application for a loan, each intermediary shall submit a description to the Administration of— "(i) the type of businesses to be assisted; "(ii) the size and range of loans to be made; "(iii) the geographic area to be served and its economic and unemployment characteristics; "(iv) the status of small business concerns in the area to be served and an analysis of their credit and technical assistance needs; "(v) any marketing, management, and technical assistance to be provided in connection with a loan made under this subsection; "(vi) the local economic credit markets, including the costs associated with obtaining credit locally; "(vii) the qualifications of the applicant to carry out the purpose of this subsection; and "(viii) any plan to involve private sector lenders in assisting selected small business concerns. " (B) INTERMEDIARY CONTRIBUTION. —As a condition of any loan made to an intermediary under subparagraph (B)(i) of paragraph (1), the Administration shall require the intermediary to contribute not less than 15 percent of the loan amount in cash from non-Federal sources. "(C) LOAN LIMITS. —Notwithstanding subsection (a)(3), no loan shall be made under this subsection if the total amount outstanding and committed to one intermediary (excluding outstanding grants) from the business loan and investment fund established by this Act would, as a result of such loan, exceed $750,000 in the first year of such intermediary's participation in the program, and $1,250,000 in the remaining years of the intermediary's participation in the demonstration program. Regulations. "(D) LoAN LOSS RESERVE FUND.— The Administration shall, by regulation, require each intermediary to establish a loan loss reserve fund, and to maintain such reserve fund until all obligations owed to the Administration under this subsection are repaid. The Administration shall require the loan loss reserve fund to be maintained— "(i) in the first year of the intermediary's participation in the demonstration program, at a level equal to not more than 15 percent of the outstanding balance of the notes receivable owed to the intermediary; and "(ii) in each year of participation thereafter, at a level reflecting the intermediary's total losses as a result of participation in the demonstration program, as determined by the Administration on a case-by-case

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