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| 59.051 NEW MARKETS VENTURE CAPITAL PROGRAM |
| FEDERAL AGENCY |
| SMALL BUSINESS ADMINISTRATION |
| AUTHORIZATION |
| Small Business Investment Act of 1958, as amended, Title III, Part B, Sections 351-368; 15 U.S.C. 689 - 689q. |
| OBJECTIVES |
| To promote economic development and the creation of wealth and job opportunities in low-income geographic areas and among individuals living in such areas, through developmental venture capital investments in smaller enterprises located in such areas. |
| TYPES OF ASSISTANCE |
| Project Grants; Guaranteed/Insured Loans. |
| USES AND USE RESTRICTIONS |
| Recipients are SBA approved New Markets Venture Capital Companies (NMVCCs) that use funds from debentures guaranteed by SBA to make equity capital investments in smaller enterprises located in low-income geographic areas. Recipients use OA grant funds to provide management and technical assistance to smaller enterprises in which they intend or make such investments. Recipients must not use grant funds for their own general and administrative expenses. Term of guaranteed debenture is up to 10 years, with no payments required in years 1 to 5, interest only payments due semi- annually in years 6 to 10, and a balloon repayment of principal due at maturity. Cost is approximately 100 basis points over comparable U.S. Treasury Securities. Prepayment is allowed without penalty after year 1. |
| Applicant Eligibility |
| No new funding will be requested for this program. |
| Beneficiary Eligibility |
| Not applicable. |
| Credentials/Documentation |
| Not applicable. |
| Preapplication Coordination |
| Not applicable. |
| Application Procedure |
| Not applicable. |
| Award Procedure |
| Not applicable. |
| Deadlines |
| Not applicable. |
| Range of Approval/Disapproval Time |
| Not applicable. |
| Appeals |
| Not applicable. |
| Renewals |
| Not applicable. |
| Formula and Matching Requirements |
| Not applicable. |
| Length and Time Phasing of Assistance |
| Not applicable. |
| Reports |
| SBA will request financial information including, but not limited to, financial statements, economic impact and community development information, and portfolio financing reports and valuations. SBA will require both annual and quarterly reports. |
| Audits |
| SBA will require an annual financial report performed by an independent public accountant and an annual examination performed by SBA's internal examiners. |
| Records |
| Appropriate records as needed for requirements of 111 and 112. |
| Account Identification |
| Guarantees (Loans) 73-1154-0-1-376; Operational Assistance grants (Grants) 73-0100-0-1-376. |
| Obligations |
| Administrative: FY 07 $210,000; FY 08 $242,000; FY 09 $251,000. |
| Range and Average of Financial Assistance |
| Not applicable. |
| PROGRAM ACCOMPLISHMENTS |
| Not applicable. |
| REGULATIONS, GUIDELINES, AND LITERATURE |
| 13 CFR Part 108. |
| Regional or Local Office |
| None. |
| Headquarters Office |
| SBA, Investment Division, New Markets Venture Capital Program, 409 3rd Street, N.W., Suite 6300, Washington, DC 20416. Telephone: (202) 205-6510. |
| Web Site Address |
| http://www.sba.gov/INV/NMVC |
| RELATED PROGRAMS |
| None. |
| EXAMPLES OF FUNDED PROJECTS |
| Not applicable. |
| CRITERIA FOR SELECTING PROPOSALS |
| Equity venture capital finance experience, community development finance experience, Federal grant administration experience and technical assistance experience. |
|
General Services Administration Office of Chief Acquisition Officer Regulatory and Federal Assistance Division (VIR) |
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