704 
than a rural business investment company shall be 
equal to the resources (in cash or inkind) raised by 
the entity in accordance with the requirements appli-
cable to rural business investment companies under 
this section. 
‘‘(i) RURAL BUSINESS INVESTMENT COMPANIES.— 
‘‘(1) ORGANIZATION.—For purposes of this 
subsection, a rural business investment company 
shall— 
‘‘(A) be an incorporated body, a limited li-
ability company, or a limited partnership orga-
nized and chartered or otherwise existing under 
State law solely for the purpose of performing 
the functions and conducting the activities au-
thorized by this section; and 
‘‘(B)(i) if incorporated, have succession for 
a period of not less than 30 years unless earlier 
dissolved by the shareholders of the rural busi-
ness investment company; and 
‘‘(ii) if a limited partnership or a limited li-
ability company, have succession for a period of 
not less than 10 years; and 
‘‘(iii) possess the powers reasonably nec-
essary to perform the functions and conduct the 
activities. 
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705 
‘‘(2) ARTICLES.—The articles of any rural busi-
ness investment company— 
‘‘(A) shall specify in general terms— 
‘‘(i) the purposes for which the rural 
business investment company is formed; 
‘‘(ii) the name of the rural business 
investment company; 
‘‘(iii) the 1 or more areas in which the 
operations of the rural business investment 
company are to be carried out; 
‘‘(iv) the place where the principal of-
fice of the rural business investment com-
pany is to be located; and 
‘‘(v) the amount and classes of the 
shares of capital stock of the rural busi-
ness investment company; 
‘‘(B) may contain any other provisions 
consistent with this section that the rural busi-
ness investment company may determine appro-
priate to adopt for the regulation of the busi-
ness of the rural business investment company 
and the conduct of the affairs of the rural busi-
ness investment company; and 
‘‘(C) shall be subject to the approval of the 
Secretary. 
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706 
‘‘(3) CAPITAL REQUIREMENTS.— 
‘‘(A) IN GENERAL.—Each rural business 
investment company shall be required to meet 
the capital requirements as provided by the Sec-
retary. 
‘‘(B) TIME FRAME.—Each rural business 
investment company shall have a period of 2 
years to meet the capital requirements of this 
paragraph. 
‘‘(C) ADEQUACY.—In addition to the re-
quirements of subparagraph (A), the Secretary 
shall— 
‘‘(i) determine whether the private 
capital of each rural business investment 
company is adequate to ensure a reason-
able prospect that the rural business in-
vestment company will be operated soundly 
and profitably, and managed actively and 
prudently in accordance with the articles of 
the rural business investment company; 
‘‘(ii) determine that the rural business 
investment company will be able to comply 
with the requirements of this section; 
‘‘(iii) require that at least 75 percent 
of the capital of each rural business invest-
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707 
ment company is invested in rural business 
concerns; 
‘‘(iv) ensure that the rural business 
investment company is designed primarily 
to meet equity capital needs of the busi-
nesses in which the rural business invest-
ment company invests and not to compete 
with traditional small business financing 
by commercial lenders; and 
‘‘(v) require that the rural business 
investment company makes short-term 
non-equity investments of less than 5 years 
only to the extent necessary to preserve an 
existing investment. 
‘‘(4) DIVERSIFICATION
OF
OWNERSHIP.—The 
Secretary shall ensure that the management of each 
rural business investment company licensed after the 
date of enactment of the Agriculture Reform, Food, 
and Jobs Act of 2013 is sufficiently diversified from 
and unaffiliated with the ownership of the rural 
business investment company so as to ensure inde-
pendence and objectivity in the financial manage-
ment and oversight of the investments and oper-
ations of the rural business investment company. 
‘‘(j) FINANCIAL INSTITUTION INVESTMENTS.— 
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708 
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this subsection and notwithstanding any 
other provision of law, the following banks, associa-
tions, and institutions are eligible both to establish 
and invest in any rural business investment company 
or in any entity established to invest solely in rural 
business investment companies: 
‘‘(A) Any bank or savings association the 
deposits of which are insured under the Federal 
Deposit Insurance Act (12 U.S.C. 1811 et 
seq.), including an investment pool created en-
tirely by such bank or savings association. 
‘‘(B) Any Farm Credit System institution 
described in subsection 1.2(a) of the Farm 
Credit Act of 1971 (12 U.S.C. 2002(a)). 
‘‘(2) LIMITATION.—No bank, association, or in-
stitution described in paragraph (1) may make in-
vestments described in paragraph (1) that are great-
er than 5 percent of the capital and surplus of the 
bank, association, or institution. 
‘‘(3) LIMITATION ON RURAL BUSINESS INVEST-
MENT COMPANIES CONTROLLED BY FARM CREDIT 
SYSTEM INSTITUTIONS.—If a Farm Credit System 
institution described in section 1.2(a) of the Farm 
Credit Act of 1971 (12 U.S.C. 2002(a)) holds more 
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709 
than 25 percent of the shares of a rural business in-
vestment company, either alone or in conjunction 
with other System institutions (or affiliates), the 
rural business investment company shall not provide 
equity investments in, or provide other financial as-
sistance to, entities that are not otherwise eligible to 
receive financing from the Farm Credit System 
under that Act (12 U.S.C. 2001 et seq.). 
‘‘(k) EXAMINATIONS.— 
‘‘(1) IN GENERAL.—Each rural business invest-
ment company that participates in the program es-
tablished under this section shall be subject to ex-
aminations made at the direction of the Secretary in 
accordance with this subsection. 
‘‘(2) ASSISTANCE OF PRIVATE SECTOR ENTI-
TIES.—An examination under this subsection may be 
conducted with the assistance of a private sector en-
tity that has the qualifications and the expertise nec-
essary to conduct such an examination. 
‘‘(3) COSTS.— 
‘‘(A) IN
GENERAL.—The Secretary may 
assess the cost of an examination under this 
section, including compensation of the exam-
iners, against the rural business investment 
company examined. 
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