subpart 2—emerging community development corporations
§12201. Community development corporation improvement grants
(a) Purpose
It is the purpose of this section to provide assistance to community development corporations to upgrade the management and operating capacity of such corporations and to enhance the resources available to enable such corporations to increase their community economic development activities.
(b) Skill enhancement grants
(1) In general
The Secretary shall award grants to community development corporations to enable such corporations to attain or enhance the business management and development skills of the individuals that manage such corporations to enable such corporations to seek the public and private resources necessary to develop community economic development projects.
(2) Use of funds
A recipient of a grant under paragraph (1) may use amounts received under such grant—
(A) to acquire training and technical assistance from agencies or institutions that have extensive experience in the development and management of low-income community economic development projects; or
(B) to acquire such assistance from other highly successful community development corporations.
(c) Operating grants
(1) In general
The Secretary shall award grants to community development corporations to enable such corporations to support an administrative capacity for the planning, development, and management of low-income community economic development projects.
(2) Use of funds
A recipient of a grant under paragraph (1) may use amounts received under such grant—
(A) to conduct evaluations of the feasibility of potential low-income community economic development projects that address identified needs in the low-income community and that conform to those projects and activities permitted under subpart 1; 1
(B) to develop a business plan related to such a potential project; or
(C) to mobilize resources to be contributed to a planned low-income community economic development project or strategy.
(d) Applications
A community development corporation that desires to receive a grant under this section shall prepare and submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require.
(e) Amount available for community development corporation
Amounts provided under this section to a community development corporation shall not exceed $75,000 per year. Such corporations may apply for grants under this section for up to 3 consecutive years, except that such corporations shall be required to submit a new application for each grant for which such corporation desires to receive and compete on the basis of such applications in the selection process.
(
Editorial Notes
References in Text
Subpart 1, referred to in subsec. (c)(2)(A), was in the original "subtitle A", and was translated as reading "
Codification
Section was formerly classified to
1 See References in Text note below.
§12202. Emerging community development corporation revolving loan funds
(a) Authority
The Secretary may award grants to emerging community development corporations to enable such corporations to establish, maintain or expand revolving loan funds, to make or guarantee loans, or to make capital investments in new or expanding local businesses.
(b) Eligibility
To be eligible to receive a grant under subsection (a), an entity shall—
(1) be a community development corporation;
(2) have completed not less than one nor more than two community economic development projects or related projects that improve or provide job and employment opportunities to low-income individuals;
(3) prepare and submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require, including a strategic investment plan that identifies and describes the economic characteristics of the target area to be served, the types of business to be assisted using amounts received under the grant and the impact of such assistance on low-income individuals; and
(4) have secured one or more commitments from local sources for contributions (either in cash or in kind, letters of credit, or letters of commitment) in an amount that is equal to at least 10 percent of the amounts requested in the application submitted under paragraph (2).1
(c) Use of revolving loan fund
(1) In general
A revolving loan fund established or maintained with amounts received under this section may be utilized to provide financial and technical assistance, loans, loan guarantees or investments to private business enterprises to—
(A) finance projects intended to provide business and employment opportunities for low-income individuals and to improve the quality of life in urban and rural areas; and
(B) build and expand the capacity of emerging community development corporations and serve the economic needs of local residents.
(2) Technical assistance
The Secretary shall encourage emerging community development corporations that receive grants under this section to seek technical assistance from established community development corporations, with expertise in the planning, development and management of economic development projects and shall facilitate the receipt of such assistance.
(3) Limitation
Not to exceed 10 percent of the amounts received under this section by a grantee shall be used for training, technical assistance and administrative purposes.
(d) Use of proceeds from investments
Proceeds derived from investments made with amounts provided under this section may be utilized only for the purposes described in this part and shall be reinvested in the community in which they were generated.
(e) Amounts available
Amounts provided under this section to a community development corporation shall not exceed $500,000 per year.
(
Editorial Notes
Codification
Section was formerly classified to