15 U.S.C. § 689 — Definitions

Page 1114 TITLE 15—COMMERCE AND TRADE § 687m 1 So in original. Probably should be ‘‘it’’. 1 So in original. Probably should be capitalized. substituting provisions relating to small business in- vestment company for provisions relating to develop- ment company and requiring prioritized payment rate to be included in central registration requirements, and in par. (2) inserting provisions relating to participating securities, contracts to carry out pooling, and mainte- nance of commercial bank accounts. 1989—Subsec. (a). Pub. L. 101–162 inserted ‘‘, including companies operating under the authority of section 681(d) of this title,’’ after ‘‘investment companies’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1996 AMENDMENT Amendment by section 205 of Pub. L. 104–208 effective Oct. 1, 1996, see section 3 of Pub. L. 104–208, set out as a note under section 633 of this title. Amendment by section 208 of Pub. L. 104–208 effective Sept. 30, 1996, see section 208(j) of Pub. L. 104–208, set out as a note under section 634 of this title. REGULATIONS Pub. L. 99–272, title XVIII, § 18005(b), Apr. 7, 1986, 100 Stat. 365, provided that: ‘‘(1) Notwithstanding any law, rule, or regulation, within 60 days after the date of the enactment of this Act [Apr. 7, 1986], the Small Business Administration shall develop and promulgate final rules and regula- tions to implement the central registration provisions provided for in section 321(f)(1) of the Small Business Investment Act [15 U.S.C. 687l(f)(1)], and shall contract with an agent for an initial period of not to exceed two years to carry out the functions provided for in sec- tions 321(f)(2) and 321(f)(3) of such Act. ‘‘(2) Notwithstanding any law, rule, or regulation, within 60 days after the date of the enactment of this Act [Apr. 7, 1986], the Small Business Administration also shall consult with representatives of appropriate Federal and State agencies and officials, the securities industry, financial institutions and lenders, and small business persons, and shall develop and promulgate final rules and regulations to implement sections 504 and 505 [section 321; 15 U.S.C. 687l] of the Small Busi- ness Investment Act.’’ EFFECT OF SMALL BUSINESS EQUITY ENHANCEMENT ACT OF 1992 ON SECURITIES LAWS Nothing in amendment by Pub. L. 102–366 to be con- strued to affect applicability of securities laws or to otherwise supersede or limit jurisdiction of Securities and Exchange Commission, see section 418 of Pub. L. 102–366, set out as a note under section 661 of this title. § 687m. Periodic issuance of guarantees and trust certificates The Administration shall issue guarantees under section 683 of this title and trust certifi- cates under section 687l of this title at periodic intervals of not less than every 12 months and shall do so at such shorter intervals as its 1 deems appropriate, taking into consideration the amount and number of such guarantees or trust certificates. (Pub. L. 85–699, title III, § 320, formerly § 322, as added Pub. L. 100–590, title I, § 106(a), Nov. 3, 1988, 102 Stat. 2993; renumbered § 320 and amend- ed Pub. L. 104–208, div. D, title II, § 208(h)(1)(E), (G), Sept. 30, 1996, 110 Stat. 3009–747; Pub. L. 105–135, title II, § 215(e), Dec. 2, 1997, 111 Stat. 2603; Pub. L. 106–9, § 2(d)(2), Apr. 5, 1999, 113 Stat. 18.) Editorial Notes PRIOR PROVISIONS A prior section 320 of Pub. L. 85–699 was renumbered section 318 and is classified to section 687k of this title. AMENDMENTS 1999—Pub. L. 106–9 substituted ‘‘12 months’’ for ‘‘6 months’’. 1997—Pub. L. 105–135 substituted ‘‘6 months’’ for ‘‘three months’’. 1996—Pub. L. 104–208 made technical amendment to reference in original act which appears in text as ref- erence to section 687l of this title. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1997 AMENDMENT Amendment by Pub. L. 105–135 effective Oct. 1, 1997, see section 3 of Pub. L. 105–135, set out as a note under section 631 of this title. § 688. Repealed. Pub. L. 87–341, § 11(e), Oct. 3, 1961, 75 Stat. 756 Section, Pub. L. 85–699, title III, § 309, Aug. 21, 1958, 72 Stat. 696, related to approval of State chartered invest- ment companies. See subsec. (a) of section 681 of this title. PART B—NEW MARKETS VENTURE CAPITAL PROGRAM § 689. Definitions In this part, the following definitions apply: (1) Developmental venture capital The term ‘‘developmental venture capital’’ means capital in the form of equity capital in- vestments in businesses made with a primary objective of fostering economic development in low-income geographic areas. For the pur- poses of this paragraph, the term ‘‘equity cap- ital’’ has the same meaning given such term in section 683(g)(4) of this title. (2) Low-income individual The term ‘‘low-income individual’’ means an individual whose income (adjusted for family size) does not exceed— (A) for metropolitan areas, 80 percent of the area median income; and (B) for nonmetropolitan areas, the greater of— (i) 80 percent of the area median income; or (ii) 80 percent of the statewide non- metropolitan area median income. (3) Low-income geographic area the 1 term ‘‘low-income geographic area’’ means— (A) any population census tract (or in the case of an area that is not tracted for popu- lation 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— (i) the poverty rate for that census tract is not less than 20 percent; (ii) in the case of a tract— (I) that is located within a metropoli- tan area, 50 percent or more of the Page 1115 TITLE 15—COMMERCE AND TRADE § 689b 2 See References in Text note below. 3 So in original. Probably should be ‘‘each’’. households in that census tract have an income equal to less than 60 percent of the area median gross income; or (II) that is not located within a metro- politan area, the median household in- come for such tract does not exceed 80 percent of the statewide median house- hold income; or (iii) as determined by the Administrator based on objective criteria, a substantial population of low-income individuals re- side, an inadequate access to investment capital exists, or other indications of eco- nomic distress exist in that census tract; or (B) any area located within— (i) a HUBZone (as defined in section 632(p) 2 of this title and the implementing regulations issued under that section); (ii) an urban empowerment zone or urban enterprise community (as designated by the Secretary of Housing and Urban Devel- opment); or (iii) a rural empowerment zone or rural enterprise community (as designated by the Secretary of Agriculture). (4) New Markets Venture Capital company The term ‘‘New Markets Venture Capital company’’ means a company that— (A) has been granted final approval by the Administrator under section 689c(e) of this title; and (B) has entered into a participation agree- ment with the Administrator. (5) Operational assistance The term ‘‘operational assistance’’ means management, marketing, and other technical assistance that assists a small business con- cern with business development. (6) Participation agreement The term ‘‘participation agreement’’ means an agreement, between the Administrator and a company granted final approval under sec- tion 689c(e) of this title, that— (A) details the company’s operating plan and investment criteria; and (B) requires the company to make invest- ments in smaller enterprises at least 80 per- cent of which are located in low-income geo- graphic areas. (7) Specialized small business investment com- pany The term ‘‘specialized small business invest- ment company’’ means any small business in- vestment company that— (A) invests solely in small business con- cerns that contribute to a well-balanced na- tional economy by facilitating ownership in such concerns by persons whose participa- tion in the free enterprise system is ham- pered because of social or economic dis- advantages; (B) is organized or chartered under State business or nonprofit corporations statutes, or formed as a limited partnership; and (C) was licensed under section 681(d) of this title, as in effect before September 30, 1996. (8) State The term ‘‘State’’ means such 3 of the sev- eral States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Is- lands, Guam, American Samoa, the Common- wealth of the Northern Mariana Islands, and any other commonwealth, territory, or posses- sion of the United States. (Pub. L. 85–699, title III, § 351, as added Pub. L. 106–554, § 1(a)(8) [§ 1(b)(3)], Dec. 21, 2000, 114 Stat. 2763, 2763A–653.) Editorial Notes REFERENCES IN TEXT Section 632(p) of this title, referred to in par. (3)(B)(i), was redesignated section 657a(b) of this title by Pub. L. 115–91, div. A, title XVII, § 1701(a)(2), Dec. 12, 2017, 131 Stat. 1795. § 689a. Purposes The purposes of the New Markets Venture Capital Program established under this part are— (1) to promote economic development and the creation of wealth and job opportunities in low-income geographic areas and among indi- viduals living in such areas by encouraging de- velopmental venture capital investments in smaller enterprises primarily located in such areas; and (2) to establish a developmental venture cap- ital program, with the mission of addressing the unmet equity investment needs of small enterprises located in low-income geographic areas, to be administered by the Adminis- trator— (A) to enter into participation agreements with New Markets Venture Capital compa- nies; (B) to guarantee debentures of New Mar- kets Venture Capital companies to enable each such company to make developmental venture capital investments in smaller en- terprises in low-income geographic areas; and (C) to make grants to New Markets Ven- ture Capital companies, and to other enti- ties, for the purpose of providing operational assistance to smaller enterprises financed, or expected to be financed, by such compa- nies. (Pub. L. 85–699, title III, § 352, as added Pub. L. 106–554, § 1(a)(8) [§ 1(b)(3)], Dec. 21, 2000, 114 Stat. 2763, 2763A–655.) § 689b. Establishment In accordance with this part, the Adminis- trator shall establish a New Markets Venture Capital Program, under which the Adminis- trator may— (1) enter into participation agreements with companies granted final approval under sec- tion 689c(e) of this title for the purposes set forth in section 689a of this title;