Page:United States Statutes at Large Volume 95.djvu/520

 95 STAT. 494

PUBLIC LAW 97-35—AUG. 13, 1981 (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 (8) participate in cooperative associations, or finance nonagricultral enterprises which will enable such families to supplement their income, (b) The Secretary is authorized to provide financial assistance to local cooperative associations or local public and private nonprofit organizations or agencies 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— (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 Secretary that the poverty of the families participating in the program and the social conditions of the rural area require such assistance. LIMITATION ON ASSISTANCE

42 USC 9811.

SEC. 622. No financial assistance shall be provided under this part unless the Secretary 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.

PART 3—DEVELOPMENT LOANS TO COMMUNITY ECONOMIC DEVELOPMENT PROGRAMS DEVELOPMENT LOAN FUND

42 USC 9812.

Post, p. 511.

SEC. 623. (a) The Secretary 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, to families and local cooperatives and the designated supportive organizations of cooperatives eligible for financial assistance under this subchapter, to private nonprofit organizations receiving assistance under subtitle B of this title, or to public and private nonprofit organizations or agencies, for business facilities and community development projects, including community development credit unions, which the Secretary determines will carry out the purposes of this part. No loans, guarantees, or other financial assistance shall be provided under this section unless the Secretary determines that— (1) there is reasonable assurance of repayment of the loan; (2) the loan is not otherwise available on reasonable terms from private sources or other Federal, State, or local programs; and

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