Page:United States Statutes at Large Volume 116 Part 1.djvu/416

 116 STAT. 390 PUBLIC LAW 107-171—MAY 13, 2002 by those entities) in an aggregate amount that does not exceed 33 percent of the private capital of the apphcant or rural business investment company. "(13) RURAL BUSINESS CONCERN. —The term 'rural business concern' means— "(A) a public, private, or cooperative for-profit or nonprofit organization; "(B) a for-profit or nonprofit business controlled by an Indian tribe on a Federal or State reservation or other federally recognized Indian tribal group; or "(C) any other person or entity; that primarily operates in a rural area, as determined by the Secretary. "(14) RURAL BUSINESS INVESTMENT COMPANY.—The term 'rural business investment company' means a company that— "(A) has been granted final approval by the Secretary under section 384D(e); and "(B) has entered into a participation agreement with the Secretary. "(15) SMALLER ENTERPRISE.— The term 'smaller enterprise' means any rural business concern that, together with its affiliates— " (A) has— "(i) a net financial worth of not more than $6,000,000, as of the date on which assistance is provided under this subtitle to the rural business concern; and "(ii) an average net income for the 2-year period preceding the date on which assistance is provided under this subtitle to the rural business concern, of not more than $2,000,000, after Federal income taxes (excluding any carryover losses), except that, for purposes of this clause, if the rural business concern is not required by law to pay Federal income taxes at the enterprise level, but is required to pass income through to the shareholders, partners, beneficiaries, or other equitable owners of the business concern, the net income of the business concern shall be determined by allowing a deduction in an amount equal to the total of— "(I) if the rural business concern is not required by law to pay State (and local, if any) income taxes at the enterprise level, the net income (determined without regard to this clause), multiplied by the marginal State income tax rate (or by the combined State and local income tax rates, as applicable) that would have applied if the business concern were a corporation; and "(II) the net income (so determined) less any deduction for State (and local) income taxes calculated under subclause (I), multiplied by the marginal Federal income tax rate that would have applied if the rural business concern were a corporation; or "(B) satisfies the standard industrial classification size standards established by the Administrator of the Small

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