Page:United States Statutes at Large Volume 88 Part 2.djvu/1003

 88 STAT. ]

PUBLIC LAW 93-644-JAN. 4, 1975

2319

such families, or will contribute to the improvement of their living or housing conditions, by assisting or permitting them to— "(1) acquire or improve real estate or reduce encumbrances or erect improvements thereon; "(2) operate or improve the operation of farms not larger than family sized, including but not limited to the purchase of feed, seed, fertilizer, livestock, poultry, and equipment; or "(3) participate in cooperative associations, or to finance nonagricultural enterprises which will enable such families to supplement their income. " (b) The Director is authorized to provide financial assistance to local cooperative associations in rural areas containing concentrations or substantial numbers of low-income persons for the purpose of defraying all or part of the costs of establishing and operating cooperative programs for farming, purchasing, marketing, processing, and to improve their income as producers and their purchasing power as consumers, and to provide such essentials as credit and health services. Costs which may be defrayed shall include but not be limited to— " (1) administrative costs of staff and overhead; " (2) costs of planning and developing new enterprises; " (3) costs of acquiring technical assistance; and "(4) initial capital where it is determined by the Director that the poverty of the families participating in the program and the social conditions of the rural area require such assistance. II

L I M I T A T I O N ON

ASSISTANCE

"SEC. Y23. (a) No financial assistance shall be provided under this part unless the Director determines that— "(1) any cooperative association receiving assistance has a minimum of fifteen active members, a majority of which are lowincome rural persons; "(2) adequate technical assistance is made available and committed to the programs being supported; "(3) such financial assistance will materially further the purposes of this part; and "(4) the applicant is fulfilling or will fulfill a need for services, supplies, or facilities which is otherwise not being met. " (b) The level of financial assistance for related purposes under this Act to the area served by a program under this part shall not be diminished in order to substitute funds authorized by this part.

" ^ use 2983b. ^

"PART C—DEVELOPMENT LOANS TO COMMUNITY ECONOMIC DEVELOPMENT PROGRAMS a DEVELOPMENT LOAN FUND

"SEC. 731. (a) The Director is authorized to make or guarantee loans (either directly or in cooperation with banks or other organizations through agreements to participate on an immediate or deferred basis) to community development corporations, and families and local cooperatives eligible for financial assistance under this title, for business, housing, and community development projects which the Director determines will carry out the purposes of this part. No loans, guarantees, or other financial assistance shall be provided under this section unless the Director determines that— "(1) there is reasonable assurance of repayment of the loan;

'•^ use 2984.

�