SEC. 354. SELECTION OF NEW MARKETS VENTURE CAPITAL COMPANIES.
(a) ELIGIBILITY- A company shall be eligible to apply to participate, as a New Markets Venture Capital company, in the program established under this part if-
(3) the company has a primary objective of economic development of low-income geographic areas.
(b) APPLICATION- To participate, as a New Markets Venture Capital company, in the program established under this part a company meeting the eligibility requirements set forth in subsection (a) shall submit an application to the Administrator that includes-
(3) a description of how the company intends to work with community organizations and to seek to address the unmet capital needs of the communities served;
(c) QUALIFIED COMMUNITY DEVELOPMENT ENTITY- For purposes of this section-
(1) IN GENERAL- The term `qualified community development entity' means any domestic corporation or partnership if-
(A) the primary mission of the entity is serving, or providing investment capital for, low-income communities or low-income persons,
(B) the entity maintains accountability to residents of low-income communities through their representation on any governing board of the entity or on any advisory board to the entity, and
(C) the entity is certified by the Secretary for purposes of this section as being a qualified community development entity.
Sec. 108.10 Description of the New Markets Venture Capital Program. The New Markets Venture Capital (``NMVC'') Program is a developmental venture capital program for the purpose of promoting economic development and the creation of wealth and job opportunities in low-income geographic areas and among individuals living in such areas. SBA selects and then enters into participation agreements with selected newly formed venture capital companies, and provides leverage in the form of debenture guarantees to such companies to allow them to make equity capital investments in smaller enterprises located in low- income geographic areas. SBA also awards grants to such companies and to Specialized Small Business Investment Companies so that they can provide operational assistance to such smaller enterprises in connection with such investments.
108.320 Contents of comprehensive business plan.
(a) Executive summary. The executive summary must include a description of--
(3) The markets in the LI Areas it proposes to serve; and
(4) How it intends to work with community organizations in and be accountable to the residents of identified LI Areas in order to facilitate its Developmental Venture Capital investments.
Further, the SBA will require reporting on community development impact:
SBA also will require each NMVC company to provide reports concerning the community development impact of each investment it makes, as well as reports on its administration and use of grant funds as required by Circular A-110 of the Office of Management and Budget, ``Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and other Non-Profit Organizations.
320. Beyond investing in LI Areas, to what extent will you target special groups of businesses, such as ethnic groups, or businesses owned by women? Discuss. Are there any other features of your proposed NMVC Company that would make it particularly unique from a public policy perspective?
322. Working with community development organizations.
322.1 Describe how you intend to work with community development organizations to solicit deals, to provide capital, and to provide technical assistance.
322.2 Name some of the organizations with which you expect to work. Very briefly, describe the types of organizations they are, the geographic areas they serve, and their purpose.
322.3 Discuss whether you anticipate having representatives of any of these organizations in an advisory role to your fund? If so, describe the anticipated activities. Please be specific.
323. Discuss whether, and if so how, you will be accountable to the residents of the LI areas in which you will be investing
[Ways in which a NMVC Company might achieve this accountability to the residents of this Low-Income Geographic Area include:
• having on its governing or advisory boards low-income individuals who reside in those Low-Income Geographic Areas;
• having on its governing or advisory boards representatives of organizations that primarily serve those Low-Income Geographic Areas (e.g. staff or board members of a non-profit organization that principally serves low-income individuals from those geographic areas);
• hosting or participating in focus groups or community meetings and/or conducting client surveys, to gather information concerning Low-Income Geographic Areas and then using such information in making investment decisions that affect those areas.]
325. New Markets Tax Credit program.
325.1 Address if, and to what extent, you intend to conform your activities to the New Markets Tax Credit program (see §108.50.)
325.2 If you plan to seek New Markets Tax Credits, state the amount of tax credit allocation you intend to seek.