{"identifier":"/us/usc/t15/s689","title":15,"num":"\u00a7\u202f689.","heading":"Definitions","text":"\u00a7\u202f689.\nDefinitions\nIn this part, the following definitions apply:\n(1)\nDevelopmental venture capital\nThe term \u201cdevelopmental venture capital\u201d means capital in the form of equity capital investments in businesses made with a primary objective of fostering economic development in low-income geographic areas. For the purposes of this paragraph, the term \u201cequity capital\u201d has the same meaning given such term in\nsection 683(g)(4) of this title\n(2)\nLow-income individual\nThe term \u201clow-income individual\u201d means an individual whose income (adjusted for family size) does not exceed\u2014\n(A) for metropolitan areas, 80 percent of the area median income; and\n(B) for nonmetropolitan areas, the greater of\u2014\n(i) 80 percent of the area median income; or\n(ii) 80 percent of the statewide nonmetropolitan area median income.\n(3)\nLow-income geographic area\nthe\n(A) any population census tract (or in the case of an area that is not tracted for population census tracts, the equivalent county division, as defined by the Bureau of the Census of the Department of Commerce for purposes of defining poverty areas), if\u2014\n(i) the poverty rate for that census tract is not less than 20 percent;\n(ii) in the case of a tract\u2014\n(I) that is located within a metropolitan area, 50 percent or more of the households in that census tract have an income equal to less than 60 percent of the area median gross income; or\n(II) that is not located within a metropolitan area, the median household income for such tract does not exceed 80 percent of the statewide median household income; or\n(iii) as determined by the Administrator based on objective criteria, a substantial population of low-income individuals reside, an inadequate access to investment capital exists, or other indications of economic distress exist in that census tract; or\n(B) any area located within\u2014\n(i) a HUBZone (as defined in section 632(p)\n2\n2 See References in Text note below.\n(ii) an urban empowerment zone or urban enterprise community (as designated by the Secretary of Housing and Urban Development); or\n(iii) a rural empowerment zone or rural enterprise community (as designated by the Secretary of Agriculture).\n(4)\nNew Markets Venture Capital company\nThe term \u201cNew Markets Venture Capital company\u201d means a company that\u2014\n(A) has been granted final approval by the Administrator under\nsection 689c(e) of this title\n(B) has entered into a participation agreement with the Administrator.\n(5)\nOperational assistance\nThe term \u201coperational assistance\u201d means management, marketing, and other technical assistance that assists a small business concern with business development.\n(6)\nParticipation agreement\nThe term \u201cparticipation agreement\u201d means an agreement, between the Administrator and a company granted final approval under\n(A) details the company\u2019s operating plan and investment criteria; and\n(B) requires the company to make investments in smaller enterprises at least 80 percent of which are located in low-income geographic areas.\n(7)\nSpecialized small business investment company\nThe term \u201cspecialized small business investment company\u201d means any small business investment company that\u2014\n(A) invests solely in small business concerns that contribute to a well-balanced national economy by facilitating ownership in such concerns by persons whose participation in the free enterprise system is hampered because of social or economic disadvantages;\n(B) is organized or chartered under State business or nonprofit corporations statutes, or formed as a limited partnership; and\n(C) was licensed under\nsection 681(d) of this title\nSeptember 30, 1996\n(8)\nState\nThe term \u201cState\u201d means such\n3\n3 So in original. Probably should be \u201ceach\u201d.","url":"https://projectusc.org/usc/t15/s689.html","content":[{"t":"sec","id":"/us/usc/t15/s689","children":[{"t":"num","text":"\u00a7\u202f689."},{"t":"heading","text":"Definitions","tail":"\n"},{"t":"chapeau","text":"In this part, the following definitions apply:"},{"t":"para","id":"/us/usc/t15/s689/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Developmental venture capital"},{"t":"content","children":[{"t":"p","text":"The term \u201cdevelopmental venture capital\u201d means capital in the form of equity capital investments in businesses made with a primary objective of fostering economic development in low-income geographic areas. For the purposes of this paragraph, the term \u201cequity capital\u201d has the same meaning given such term in ","children":[{"t":"ref","text":"section 683(g)(4) of this title","href":"/us/usc/t15/s683/g/4","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s689/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Low-income individual"},{"t":"chapeau","text":"The term \u201clow-income individual\u201d means an individual whose income (adjusted for family size) does not exceed\u2014"},{"t":"subpara","id":"/us/usc/t15/s689/2/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" for metropolitan areas, 80 percent of the area median income; and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t15/s689/2/B","children":[{"t":"num","text":"(B)"},{"t":"chapeau","text":" for nonmetropolitan areas, the greater of\u2014"},{"t":"clause","id":"/us/usc/t15/s689/2/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" 80 percent of the area median income; or","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t15/s689/2/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" 80 percent of the statewide nonmetropolitan area median income.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s689/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Low-income geographic area"},{"t":"chapeau","text":"the\u202f","children":[{"t":"ref","text":"1"},{"t":"num","text":"1","tail":"\u202fSo in original. Probably should be capitalized."},{"t":"text","text":"\u202fSo in original. Probably should be capitalized.","tail":" term \u201clow-income geographic area\u201d means\u2014"}]},{"t":"subpara","id":"/us/usc/t15/s689/3/A","children":[{"t":"num","text":"(A)"},{"t":"chapeau","text":" any population census tract (or in the case of an area that is not tracted for population census tracts, the equivalent county division, as defined by the Bureau of the Census of the Department of Commerce for purposes of defining poverty areas), if\u2014"},{"t":"clause","id":"/us/usc/t15/s689/3/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" the poverty rate for that census tract is not less than 20 percent;","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t15/s689/3/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"chapeau","text":" in the case of a tract\u2014"},{"t":"subclause","id":"/us/usc/t15/s689/3/A/ii/I","children":[{"t":"num","text":"(I)"},{"t":"content","text":" that is located within a metropolitan area, 50 percent or more of the households in that census tract have an income equal to less than 60 percent of the area median gross income; or","tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t15/s689/3/A/ii/II","children":[{"t":"num","text":"(II)"},{"t":"content","text":" that is not located within a metropolitan area, the median household income for such tract does not exceed 80 percent of the statewide median household income; or","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t15/s689/3/A/iii","children":[{"t":"num","text":"(iii)"},{"t":"content","text":" as determined by the Administrator based on objective criteria, a substantial population of low-income individuals reside, an inadequate access to investment capital exists, or other indications of economic distress exist in that census tract; or","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t15/s689/3/B","children":[{"t":"num","text":"(B)"},{"t":"chapeau","text":" any area located within\u2014"},{"t":"clause","id":"/us/usc/t15/s689/3/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" a HUBZone (as defined in section 632(p)\u202f","children":[{"t":"ref","text":"2"},{"t":"num","text":"2","tail":"\u202fSee References in Text note below."},{"t":"text","text":"\u202fSee References in Text note below.","tail":" of this title and the implementing regulations issued under that section);"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t15/s689/3/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" an urban empowerment zone or urban enterprise community (as designated by the Secretary of Housing and Urban Development); or","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t15/s689/3/B/iii","children":[{"t":"num","text":"(iii)"},{"t":"content","text":" a rural empowerment zone or rural enterprise community (as designated by the Secretary of Agriculture).","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s689/4","children":[{"t":"num","text":"(4)"},{"t":"heading","text":"New Markets Venture Capital company"},{"t":"chapeau","text":"The term \u201cNew Markets Venture Capital company\u201d means a company that\u2014"},{"t":"subpara","id":"/us/usc/t15/s689/4/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" has been granted final approval by the Administrator under ","children":[{"t":"ref","text":"section 689c(e) of this title","href":"/us/usc/t15/s689c/e","tail":"; and"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t15/s689/4/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" has entered into a participation agreement with the Administrator.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s689/5","children":[{"t":"num","text":"(5)"},{"t":"heading","text":"Operational assistance"},{"t":"content","children":[{"t":"p","text":"The term \u201coperational assistance\u201d means management, marketing, and other technical assistance that assists a small business concern with business development.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s689/6","children":[{"t":"num","text":"(6)"},{"t":"heading","text":"Participation agreement"},{"t":"chapeau","text":"The term \u201cparticipation agreement\u201d means an agreement, between the Administrator and a company granted final approval under ","children":[{"t":"ref","text":"section 689c(e) of this title","href":"/us/usc/t15/s689c/e","tail":", that\u2014"}]},{"t":"subpara","id":"/us/usc/t15/s689/6/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" details the company\u2019s operating plan and investment criteria; and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t15/s689/6/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" requires the company to make investments in smaller enterprises at least 80 percent of which are located in low-income geographic areas.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s689/7","children":[{"t":"num","text":"(7)"},{"t":"heading","text":"Specialized small business investment company"},{"t":"chapeau","text":"The term \u201cspecialized small business investment company\u201d means any small business investment company that\u2014"},{"t":"subpara","id":"/us/usc/t15/s689/7/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" invests solely in small business concerns that contribute to a well-balanced national economy by facilitating ownership in such concerns by persons whose participation in the free enterprise system is hampered because of social or economic disadvantages;","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t15/s689/7/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" is organized or chartered under State business or nonprofit corporations statutes, or formed as a limited partnership; and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t15/s689/7/C","children":[{"t":"num","text":"(C)"},{"t":"content","text":" was licensed under ","children":[{"t":"ref","text":"section 681(d) of this title","href":"/us/usc/t15/s681/d","tail":", as in effect before "},{"t":"text","text":"September 30, 1996","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s689/8","children":[{"t":"num","text":"(8)"},{"t":"heading","text":"State"},{"t":"content","children":[{"t":"p","text":"The term \u201cState\u201d means such\u202f","children":[{"t":"ref","text":"3"},{"t":"num","text":"3","tail":"\u202fSo in original. Probably should be \u201ceach\u201d."},{"t":"text","text":"\u202fSo in original. Probably should be \u201ceach\u201d.","tail":" of the several States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and any other commonwealth, territory, or possession of the United States."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}