Page:United States Statutes at Large Volume 110 Part 1.djvu/1171

 : i%it- .' PUBLIC LAW 104-127—APR. 4, 1996 110 STAT. 1147 "(5) integrate State development programs with assistance under this subtitle. "SEC. 381N. ELECTRONIC TRANSFER. 7 USC 2009m. "The Secretary shall transfer funds in accordance with this subtitle through electronic transfer as soon as practicable after the date of enactment of this subtitle. "SEC. 3810. RURAL VENTLTRE CAPITAL DEMONSTRATION PROGRAM. 7 USC 2009n "(a) IN GENERAL.— The Secretary may designate for each fiscal year up to 10 community development venture capital organizations to demonstrate the utility of guarantees to attract increased private investment in rural private business enterprises. " (b) RURAL BUSINESS INVESTMENT POOL.— "(1) ESTABLISHMENT.— To be eligible to participate in the demonstration program, an organization referred to in subsection (a) shall establish a rural business private investment pool (referred to in this subsection as a 'pool') for the purpose of making equity investments in rural private business enterprises. "(2) GUARANTEE.— From amounts in the national reserve account of the Trust Fund, the Secretary shall guarantee the funds in a pool against loss, except that the guarantee shall not exceed an amount equal to 30 percent of the total funds in the pool. "(3) AMOUNT. —The Secretary shall issue guarantees covering not more than $15,000,000 of contingent liabilities for each of fiscal years 1996 through 2002. "(4) TERM. —The term of a guarantee provided under this subsection shall not exceed 10 years. "(5) SUBMISSION OF PLAN. —TO be eligible to participate in the demonstration program, an organization referred to in subsection (a) shall svibmit a plan that describes— "(A) potential sources and uses of the pool to be established by the organization; "(B) the utility of the guarantee authority in attracting capital for the pool; and "(C) on selection, mechanisms for notifying State, local, and private nonprofit business development organizations and businesses of the existence of the pool. "(6) COMPETITION.— "(A) IN GENERAL.— The Secretary shall conduct a competition for the designation and establishment of pools. "(B) PRIORITY. —In conducting the competition, the Secretary shall give priority to organizations that— "(i) have a demonstrated record of performance, or have a board and executive director with experience, in venture capital, small business equity investment, or community development finance; "(ii) propose to serve low-income communities; "(iii) propose to maintain an average investment of not more than $500,000 from the pool of the organization; "(iv) invest funds statewide or in a multicounty region; and "(v) propose to target job opportunities resulting from the investments primarily to economically dis-

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