348 
(i) until completion of the administrative proceedings pur-
suant to a notice of intention to remove served under sub-
section (a); and 
(ii) until such time as the Administrator dismisses the 
charges specified in the notice, or, if an order of removal or 
prohibition is issued against the management official, until 
the effective date of any such order. 
(3) JUDICIAL REVIEW.—Not later than 10 days after a management 
official is suspended from office or prohibited from participation in the 
management or conduct of the affairs of a licensee under paragraph 
(1), the management official may apply to the United States district 
court for the judicial district in which the principal place of business 
of the licensee is located, or the United States District Court for the 
District of Columbia, for a stay of the suspension or prohibition pend-
ing the completion of the administrative proceedings pursuant to a no-
tice of intention to remove served on the management official under 
subsection (a), and the court shall have jurisdiction to stay the suspen-
sion or prohibition. 
(c) SUSPENSION, OR PROHIBITION
OF PARTICIPATION, ON CRIMINAL 
CHARGES.— 
(1) IN GENERAL.—If a management official is charged, in an infor-
mation, indictment, or complaint authorized by a United States attor-
ney, with the commission of or participation in a felony involving dis-
honesty or breach of trust, the Administrator may, by written notice 
served on the management official, suspend the management official 
from office or prohibit the management official from further participa-
tion in any manner in the management or conduct of the affairs of the 
licensee, or both. 
(2) EFFECTIVENESS.—A suspension or prohibition under paragraph 
(1) shall remain in effect— 
(A) until the subject information, indictment, or complaint is fi-
nally disposed of; or 
(B) until it is terminated by the Administrator. 
(3) CONVICTION.—If a judgment of conviction with respect to an of-
fense described in paragraph (1) is entered against a management offi-
cial, at such time as the judgment is not subject to further appellate 
review, the Administrator may issue and serve on the management offi-
cial an order removing the management official from office, which re-
moval shall become effective on service of a copy of the order on the 
licensee. 
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(4) DISMISSAL OR OTHER DISPOSITION.—A finding of not guilty or 
other disposition of charges described in paragraph (1) shall not pre-
clude the Administrator from thereafter instituting proceedings to sus-
pend or remove the management official from office, or to prohibit the 
management official from participation in the management or conduct 
of the affairs of the licensee, or both, under subsection (a) or (b). 
(d) PROCEDURE.— 
(1) HEARING VENUE.—A hearing under this section shall be— 
(A) held in the Federal judicial district or in the territory in 
which the principal office of the licensee is located, unless the 
party afforded the hearing consents to another place; and 
(B) conducted in accordance with chapter 5 of title 5. 
(2) ISSUANCE OF ORDERS.—After a hearing under this section, and 
not later than 90 days after the Administrator notifies the parties that 
the case has been submitted for final decision, the Administrator 
shall— 
(A) render a decision in the matter (which shall include findings 
of fact on which the decision is predicated); and 
(B) serve on each party to the proceeding an order or orders 
consistent with this section. 
(3) MODIFICATION OF ORDER.—The Administrator may modify, ter-
minate, or set aside an order issued under this section— 
(A) at any time, on such notice, and in such manner as the Ad-
ministrator considers proper, unless a petition for review is timely 
filed in a court of appeals of the United States, as provided in 
paragraph (4)(B), and thereafter until the record in the pro-
ceeding has been filed in accordance with paragraph (4)(C); and 
(B) on such filing of the record, with permission of the court. 
(4) JUDICIAL REVIEW.— 
(A) IN GENERAL.—Judicial review of an order issued under this 
section shall be exclusively as provided in this subsection. 
(B) PETITION FOR REVIEW.—A party to a hearing under this 
section may obtain a review of an order issued under paragraph 
(2) (other than an order issued with the consent of the manage-
ment official concerned or an order issued under subsection (c)) 
by filing in the court of appeals of the United States for the cir-
cuit in which the principal office of the licensee is located, or in 
the United States Court of Appeals for the District of Columbia 
Circuit, not later than 30 days after the date of service of the 
order, a written petition praying that the order of the Adminis-
trator be modified, terminated, or set aside. 
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(C) NOTIFICATION TO THE ADMINISTRATOR.—A copy of a peti-
tion filed under subparagraph (B) shall be forthwith transmitted 
by the clerk of the court to the Administrator, and thereupon the 
Administrator shall file in the court the record in the proceeding, 
as provided in section 2112 of title 28. 
(D) COURT JURISDICTION.—On the filing of a petition under 
subparagraph (B)— 
(i) the court shall have jurisdiction, which, on the filing of 
the record under subparagraph (C), shall be exclusive, to af-
firm, modify, terminate, or set aside, in whole or in part, the 
order of the Administrator; 
(ii) review of the proceedings shall be had as provided in 
chapter 7 of title 5; and 
(iii) the judgment and decree of the court shall be final, ex-
cept that the judgment and decree shall be subject to review 
by the Supreme Court on certiorari as provided in section 
1254 of title 28. 
(E) JUDICIAL REVIEW NOT A STAY.—The commencement of 
proceedings for judicial review under this paragraph shall not, un-
less specifically ordered by the court, operate as a stay of any 
order issued by the Administrator under this section. 
§ 30321. Direct civil enforcement actions 
(a) FORFEITURE OF RIGHTS, PRIVILEGES, AND FRANCHISES.— 
(1) IN GENERAL.—If a licensee violates or fails to comply with any 
provision of this subtitle (including a regulation prescribed under this 
subtitle), all of the licensee’s rights, privileges, and franchises derived 
from this subtitle may be forfeited. 
(2) CIVIL ACTION.—Before a licensee is declared dissolved, or its 
rights, privileges, and franchises forfeited, any noncompliance with or 
violation of this subtitle shall be determined by a court of the United 
States of competent jurisdiction in a civil action brought in the district, 
territory, or other place subject to the jurisdiction of the United States 
in which the principal office of the licensee is located. Any such civil 
action shall be brought by the United States at the instance of the Ad-
ministrator or the Attorney General. 
(b) INJUNCTIONS AND OTHER ORDERS.— 
(1) IN GENERAL.—If a licensee or any other person engages or is 
about to engage in an act or practice that constitutes or will constitute 
a violation of any provision of this subtitle (including a regulation 
under this subtitle) or of any order issued under this subtitle, the Ad-
ministrator may bring a civil action in a district court of the United 
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351 
States or a United States court of any place subject to the jurisdiction 
of the United States for an order enjoining the act or practice, or for 
an order enforcing compliance with the provision, regulation, or order, 
and the court shall have jurisdiction over the civil action and, on a 
showing by the Administrator that the licensee or other person has en-
gaged or is about to engage in any such act or practice, a permanent 
or temporary injunction, restraining order, or other order shall be 
granted without bond. 
(2) JURISDICTION
OVER
LICENSEE
AND
ASSETS
OF
THE
LI-
CENSEE.—In a civil action under subsection (a), the court may, to such 
extent as the court considers necessary, take exclusive jurisdiction of 
the licensee and the assets of the licensee, wherever located, and the 
court shall have jurisdiction to appoint a trustee or receiver to hold or 
administer the assets of the licensee under the direction of the court. 
(3) TRUSTEESHIP OR RECEIVERSHIP OVER LICENSEE.—On request 
of the Administrator, the court may appoint the Administrator to act 
as trustee or receiver of the licensee unless the court considers that 
such an appointment would be inequitable or otherwise inappropriate 
by reason of special circumstances involved in the civil action. 
§ 30322. Jurisdiction; service of process 
A civil action or other proceeding brought under section 30318(b)(4)(C), 
30319, 30320, or 30321 of this title by the Administrator to enforce any 
liability or duty created by, or to enjoin any violation of, this subtitle, or 
any regulation or order promulgated under this subtitle shall be brought in 
the district in which the licensee maintains its principal office, and process 
in such cases may be served in any district in which the defendant main-
tains its principal office or transacts business, or wherever the defendant 
may be found. 
CHAPTER 305—NEW MARKETS VENTURE CAPITAL 
COMPANY PROGRAM 
Sec. 
30501.
Definitions. 
30502.
Establishment of program. 
30503.
Approval of new markets venture capital companies. 
30504.
Guarantee of new markets venture capital company debentures. 
30505.
Trust certificates. 
30506.
Fees. 
30507.
Operational assistance grants. 
30508.
Bank participation. 
30509.
Reporting requirement. 
30510.
Regulations. 
30511.
Unlawful acts and omissions. 
30512.
Examinations. 
30513.
Removal or suspension of directors or officers. 
30514.
Direct civil enforcement actions. 
§ 30501. Definitions 
In this chapter: 
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(1) DEVELOPMENTAL VENTURE CAPITAL.— 
(A) IN GENERAL.—The term ‘‘developmental venture capital’’ 
means capital in the form of an equity capital investment in a 
smaller enterprise made with a primary objective of fostering eco-
nomic development in a low-income geographic area. 
(B) EQUITY CAPITAL.—In subparagraph (A), the term ‘‘equity 
capital’’ has the meaning given the term in section 30304(g)(1)(B) 
of this title. 
(2) ELIGIBLE COMPANY.—The term ‘‘eligible company’’ means a 
company that— 
(A) is a newly formed for-profit entity or a newly formed for- 
profit subsidiary of an existing entity; 
(B) has a management team with experience in community de-
velopment financing or relevant venture capital financing; and 
(C) has a primary objective of economic development of one or 
more low-income geographic areas. 
(3) LOW-INCOME INDIVIDUAL.—The term ‘‘low-income individual’’ 
means an individual whose income (adjusted for family size) does not 
exceed— 
(A) in the case of an individual residing in a metropolitan area, 
80 percent of the median income of all individuals residing in the 
metropolitan area; and 
(B) in the case of an individual residing in a nonmetropolitan 
area, the greater of— 
(i) 80 percent of the median income of all individuals resid-
ing in the nonmetropolitan area; or 
(ii) 80 percent of the median income of all individuals re-
siding in all of the nonmetropolitan areas in the State in 
which the individual resides. 
(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 30503(c) of this title; and 
(B) has entered into a participation agreement with the Admin-
istrator. 
(5) OPERATIONAL ASSISTANCE.—The term ‘‘operational assistance’’ 
means management, marketing, and other technical assistance that as-
sists a smaller enterprise with business development. 
(6) PARTICIPATION AGREEMENT.—The term ‘‘participation agree-
ment’’ means a participation agreement under section 30503(b)(4)(D) 
of this title. 
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353 
(7) PROGRAM.—The term ‘‘program’’ means the new markets ven-
ture capital company program. 
(8) STATE.—The term ‘‘State’’ means a State, the District of Co-
lumbia, Puerto Rico, the Virgin Islands, Guam, American Samoa, the 
Northern Mariana Islands, and any other commonwealth, territory, or 
possession of the United States. 
§ 30502. Establishment of program 
(a) IN GENERAL.—The Administrator shall establish a developmental 
venture capital program to be known as the new markets venture capital 
company program— 
(1) with the purpose of promoting economic development and cre-
ating wealth and job opportunities in low-income geographic areas and 
among individuals living in low-income geographic areas by encouraging 
developmental venture capital investments in smaller enterprises pri-
marily located in low-income geographic areas; and 
(2) with the mission of addressing the unmet equity investment 
needs of smaller enterprises located in low-income geographic areas. 
(b) ACTIVITIES.—Under the program, the Administrator may— 
(1) enter into participation agreements with new markets venture 
capital companies under section 30503(b)(4)(D) of this title for the 
purposes described in subsection (a); 
(2) guarantee debentures issued by new markets venture capital 
companies under section 30504 of this title; and 
(3) make grants to new markets venture capital companies and spe-
cialized small business investment companies under section 30507 of 
this title. 
§ 30503. Approval of new markets venture capital companies 
(a) APPLICATION.—To participate in the program as a new markets ven-
ture capital company, an eligible company shall submit to the Administrator 
an application that includes— 
(1) a business plan describing how the applicant intends to make 
successful developmental venture capital investments in identified low- 
income geographic areas; 
(2) information regarding the community development finance or rel-
evant venture capital qualifications and general reputation of the appli-
cant’s management; 
(3) a description of how the applicant intends to work with commu-
nity organizations and to seek to address the unmet capital needs of 
the communities served; 
(4) a proposal describing how the applicant intends to use the grant 
funds provided under this chapter to provide operational assistance to 
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354 
smaller enterprises financed by the applicant, including information re-
garding whether the applicant intends to use licensed professionals, 
when necessary, on the applicant’s staff or from an outside entity; 
(5) with respect to binding commitments to be made to the applicant 
under this chapter, an estimate of the ratio of cash to in-kind contribu-
tions; 
(6) a description of the criteria to be used to evaluate whether and 
to what extent the applicant meets the objectives of the program; 
(7) information regarding the management and financial strength of 
any parent firm, affiliated firm, or any other firm essential to the suc-
cess of the applicant’s business plan; and 
(8) such other information as the Administrator may require. 
(b) CONDITIONAL APPROVAL.— 
(1) IN GENERAL.—From among eligible companies submitting appli-
cations under subsection (a), the Administrator shall conditionally ap-
prove applicants to participate in the program. 
(2) SELECTION CRITERIA.—In conditionally approving eligible com-
panies under paragraph (1), the Administrator shall consider— 
(A) the likelihood that an applicant will meet the goal of its 
business plan; 
(B) the experience and background of an applicant’s manage-
ment team; 
(C) the need for developmental venture capital investments in 
the geographic areas in which an applicant intends to invest; 
(D) the extent to which an applicant will concentrate its activi-
ties on serving the geographic areas in which the applicant intends 
to invest; 
(E) the likelihood that an applicant will be able to satisfy the 
conditions under paragraph (4); 
(F) the extent to which the activities proposed by an applicant 
will expand economic opportunities in the geographic areas in 
which the applicant intends to invest; 
(G) the strength of the applicant’s proposal to provide oper-
ational assistance as the proposal relates to the ability of the ap-
plicant to meet applicable cash requirements and properly use in- 
kind contributions, including the use of resources for the services 
of licensed professionals, when necessary, whether provided by em-
ployees or by contractors; and 
(H) any other factor that the Administrator considers appro-
priate. 
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355 
(3) NATIONWIDE DISTRIBUTION.—The Administrator shall select ap-
plicants under paragraph (1) in a manner that promotes investment 
nationwide. 
(4) REQUIREMENTS FOR FINAL APPROVAL.— 
(A) SPECIFICATION
OF
DATE.—On granting conditional ap-
proval of an applicant, the Administrator shall specify a date, not 
to exceed the date that is 2 years after the date of conditional ap-
proval, by which the conditionally approved applicant shall satisfy 
the requirements stated in this paragraph. 
(B) CAPITAL REQUIREMENT.—A conditionally approved appli-
cant shall raise not less than $5,000,000 of private capital or 
binding capital commitments from one or more investors (other 
than Federal agencies) that meet criteria established by the Ad-
ministrator. 
(C) NONADMINISTRATION RESOURCES FOR OPERATIONAL AS-
SISTANCE.— 
(i) IN
GENERAL.—To provide operational assistance to 
smaller enterprises expected to be financed by a conditionally 
approved applicant, the conditionally approved applicant— 
(I) shall have binding commitments (for contribution 
in cash or in kind)— 
(aa) from any sources other than the Adminis-
trator that meet criteria established by the Adminis-
trator; 
(bb) payable or available over a multiyear period 
that the Administrator considers appropriate (not to 
exceed 10 years); and 
(cc) in an amount that is not less than 30 percent 
of the total amount of capital and commitments 
raised under subparagraph (B); 
(II) shall have purchased from an insurance company 
acceptable to the Administrator, using funds (other than 
the funds raised under subparagraph (B)) from any 
source other than the Administrator, an annuity that 
yields cash payments over a multiyear period acceptable 
to the Administrator (not to exceed 10 years) in an 
amount that is not less than 30 percent of the total 
amount of capital and commitments raised under sub-
paragraph (B); or 
(III) shall have binding commitments (for contribu-
tions in cash or in kind) of the type described in sub-
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356 
clause (I) and shall have purchased an annuity of the 
type described in subclause (II), which in the aggregate 
make available, over a multiyear period acceptable to the 
Administrator (not to exceed 10 years), an amount that 
is not less than 30 percent of the total amount of capital 
and commitments raised under subparagraph (B). 
(ii) EXCEPTION.—On a showing of special circumstances 
and good cause, the Administrator may consider an applicant 
to satisfy the requirements of clause (i) if the applicant has— 
(I) a viable plan that reasonably projects the capacity 
of the applicant to raise the amount (in cash or in-kind) 
required under clause (i); and 
(II) binding commitments in an amount that is equal 
to not less than 20 percent of the amount required under 
clause (i). 
(iii) LIMITATION.—To comply with the requirements of 
clauses (i) and (ii), the amount of in-kind contributions made 
by a conditionally approved applicant shall not exceed 50 per-
cent of the total contributions made by the conditionally ap-
proved applicant. 
(D) PARTICIPATION AGREEMENT.—A conditionally approved ap-
plicant shall enter into a participation agreement with the Admin-
istrator that— 
(i) details the conditionally approved applicant’s operating 
plan and investment criteria; and 
(ii) requires the conditionally approved applicant, after 
final approval under subsection (c), to make investments in 
smaller enterprises at least 80 percent of which are located 
in low-income geographic areas. 
(c) FINAL APPROVAL.—The Administrator shall— 
(1) grant final approval to a conditionally approved applicant to op-
erate as a new markets venture capital company if the conditionally ap-
proved applicant satisfies the requirements of paragraph (4) of sub-
section (b) on or before the expiration of the date specified under sub-
paragraph (A) of that paragraph; or 
(2) if the conditionally approved applicant fails to satisfy those re-
quirements on or before the expiration of that date, revoke the condi-
tional approval granted under subsection (b). 
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357 
§ 30504. Guarantee of new markets venture capital company 
debentures 
(a) IN GENERAL.—To enable a new markets venture capital company to 
make developmental venture capital investments in smaller enterprises in a 
low-income geographic area, the Administrator may guarantee the timely 
payment of principal and interest, as scheduled, on debentures issued by the 
new markets venture capital company. 
(b) TERMS AND CONDITIONS.—The Administrator may make a guarantee 
under this section on such terms and conditions as the Administrator con-
siders appropriate, except that the term of any debenture guaranteed under 
this section shall not exceed 15 years. 
(c) FULL FAITH AND CREDIT OF THE UNITED STATES.—The full faith 
and credit of the United States is pledged to pay all amounts that may be 
required to be paid under any guarantee under this chapter. 
(d) MAXIMUM AMOUNT OF GUARANTEE.— 
(1) IN GENERAL.—The Administrator may guarantee the debentures 
issued by a new markets venture capital company only to the extent 
that the total face amount of outstanding guaranteed debentures of the 
new markets venture capital company does not exceed 150 percent of 
the private capital of the new markets venture capital company, as de-
termined by the Administrator. 
(2) TREATMENT OF CERTAIN FEDERAL FUNDS.—For purposes of 
paragraph (1), private capital may include capital that is considered to 
be Federal funds (within the meaning of section 30101(15)(C)(iii) of 
this title) if the capital is contributed by an investor other than a Fed-
eral agency. 
§ 30505. Trust certificates 
(a) ISSUANCE.— 
(1) IN GENERAL.—The Administrator, acting directly or through an 
agent, may issue trust certificates representing ownership of all or a 
fractional part of debentures issued by a new markets venture capital 
company and guaranteed by the Administrator under section 30504 of 
this title. 
(2) TRUST OR POOL.—Trust certificates issued under paragraph (1) 
shall be based on and backed by a trust or pool approved by the Ad-
ministrator and composed solely of guaranteed debentures. 
(b) GUARANTEE.— 
(1) IN GENERAL.—The Administrator may, under such terms and 
conditions as the Administrator considers appropriate, guarantee the 
timely payment of the principal of and interest on trust certificates 
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issued by the Administrator or an agent of the Administrator under 
this section. 
(2) LIMITATION.—A guarantee under this subsection shall be limited 
to the extent of principal and interest on the guaranteed debentures 
that compose the trust or pool. 
(3) PREPAYMENT OR DEFAULT.— 
(A) IN GENERAL.—In the event that a debenture in a trust or 
pool is prepaid, or in the event of default of such a debenture, the 
guarantee of timely payment of principal and interest on the trust 
certificates shall be reduced in proportion to the amount of prin-
cipal and interest that the prepaid debenture represents in the 
trust or pool. 
(B) INTEREST PERIOD.—Interest on a prepaid or defaulted de-
benture shall accrue and be guaranteed by the Administrator only 
through the date of payment of the guarantee. 
(C) CALL.—At any time during the term of a trust certificate, 
a trust certificate may be called for redemption due to prepayment 
or default of all debentures that compose the trust or pool. 
(c) FULL FAITH AND CREDIT OF THE UNITED STATES.—The full faith 
and credit of the United States is pledged to pay all amounts that may be 
required to be paid under any guarantee of a trust certificate issued by the 
Administrator or an agent of the Administrator under this section. 
(d) FEES.—The Administrator shall not collect a fee for any guarantee 
of a trust certificate under this section, but an agent of the Administrator 
may collect a fee approved by the Administrator for the functions described 
in subsection (f)(2). 
(e) SUBROGATION AND OWNERSHIP RIGHTS.— 
(1) SUBROGATION.—If the Administrator pays a claim under a guar-
antee issued under this section, the Administrator shall be subrogated 
fully to the rights satisfied by the payment. 
(2) OWNERSHIP RIGHTS.—No Federal, State, or local law shall pre-
clude or limit the exercise by the Administrator of the ownership rights 
of the Administrator in the debentures residing in a trust or pool 
against which trust certificates are issued under this section. 
(f) MANAGEMENT AND ADMINISTRATION.— 
(1) REGISTRATION.—The Administrator may provide for a central 
registration of all trust certificates issued under this section. 
(2) CONTRACTING OF FUNCTIONS.— 
(A) IN GENERAL.—The Administrator may contract with one or 
more agents to carry out on behalf of the Administrator the pool-
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359 
ing and the central registration functions provided for in this sec-
tion including, notwithstanding any other provision of law— 
(i) maintenance, on behalf of and under the direction of the 
Administrator, of such commercial bank accounts or invest-
ments in obligations of the United States as may be necessary 
to facilitate the creation of trusts or pools backed by deben-
tures guaranteed under section 30504 of this title; and 
(ii) the issuance of trust certificates to facilitate the cre-
ation of such trusts or pools. 
(B) FIDELITY BOND OR INSURANCE REQUIREMENT.—An agent 
performing functions on behalf of the Administrator under this 
paragraph shall provide a fidelity bond or insurance in such 
amounts as the Administrator determines to be necessary to fully 
protect the interests of the United States. 
(3) REGULATION OF BROKERS AND DEALERS.—The Administrator 
may regulate brokers and dealers in trust certificates issued under this 
section. 
(4) FORM OF REGISTRATION.—This subsection does not preclude the 
use of a book-entry or other electronic form of registration for trust 
certificates issued under this section. 
§ 30506. Fees 
Except as provided in section 30505(d) of this title, the Administrator 
may charge such fees as the Administrator considers appropriate with re-
spect to any guarantee or grant issued under this chapter. 
§ 30507. Operational assistance grants 
(a) IN GENERAL.— 
(1) AUTHORITY.—The Administrator may make a grant to a new 
markets venture capital company or specialized small business invest-
ment company to enable the new markets venture capital company or 
specialized small business investment company to provide operational 
assistance to smaller enterprises financed, or expected to be financed, 
by the new markets venture capital company or specialized small busi-
ness investment company. 
(2) TERMS.—A grant under this subsection shall be made over a 
multiyear period not to exceed 10 years, under such other terms as the 
Administrator may require. 
(3) SPECIALIZED SMALL BUSINESS INVESTMENT COMPANIES.— 
(A) SUBMISSION OF PLAN.—A specialized small business invest-
ment company shall be eligible for a grant under this section only 
if the specialized small business investment company submits to 
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the Administrator, in such form and manner as the Administrator 
may require, a plan for use of the grant. 
(B) USE OF FUNDS.—The proceeds of a grant made to a spe-
cialized small business investment company under this subsection 
shall be used by the specialized small business investment com-
pany only to provide operational assistance in connection with an 
equity investment made with capital raised after December 21, 
2000, in a smaller enterprise located in a low-income geographic 
area. 
(4) GRANT AMOUNT.— 
(A) NEW
MARKETS
VENTURE
CAPITAL
COMPANIES.—The 
amount of a grant made under this subsection to a new markets 
venture capital company shall be equal to the amount of resources 
(in cash or in kind) raised by the new markets venture capital 
company under section 30503(b)(4)(B) of this title. 
(B) SPECIALIZED SMALL BUSINESS INVESTMENT COMPANIES.— 
The amount of a grant made under this subsection to a specialized 
small business investment company shall be equal to the resources 
(in cash or in kind) raised by the entity in accordance with the 
requirements applicable to new markets venture capital companies 
under section 305053(b)(4)(C) of this title. 
(5) PRO RATA REDUCTIONS.—If the amount made available to carry 
out this section is insufficient for the Administrator to provide grants 
in the amounts provided for in paragraph (4), the Administrator shall 
make pro rata reductions in the amounts otherwise payable to each new 
markets venture capital company and specialized small business invest-
ment company under that paragraph. 
(b) SUPPLEMENTAL GRANTS.— 
(1) IN GENERAL.—The Administrator may make a supplemental 
grant to a new markets venture capital company or specialized small 
business investment company under such terms as the Administrator 
may require, to provide additional operational assistance to smaller en-
terprises financed, or expected to be financed, by the new markets ven-
ture capital company or specialized small business investment company. 
(2) MATCHING REQUIREMENT.—The Administrator may require, as 
a condition of a supplemental grant under this subsection, that the new 
markets venture capital company or specialized small business invest-
ment company receiving the grant provide from resources (in cash or 
in kind), other than those provided by the Administrator, a matching 
contribution equal to the amount of the supplemental grant. 
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361 
(c) LIMITATION.—None of the assistance made available under this sec-
tion may be used for any overhead or general and administrative expense 
of a new markets venture capital company or a specialized small business 
investment company. 
§ 30508. Bank participation 
(a) IN GENERAL.—Except as provided in subsection (b), a national bank, 
a member bank of the Federal Reserve System, and (to the extent permitted 
under applicable State law) an insured bank that is not a member of the 
Federal Reserve System may invest in a new markets venture capital com-
pany or in an entity established to invest solely in new markets venture cap-
ital companies. 
(b) LIMITATION.—A bank described in subsection (a) shall not make in-
vestments described in that subsection in a total amount that is greater 
than 5 percent of the capital and surplus of the bank. 
§ 30509. Reporting requirement 
A new markets venture capital company that participates in the program 
shall provide the Administrator such information as the Administrator may 
require, including— 
(1) information relating to the measurement criteria that the new 
markets venture capital company proposed in its program application; 
and 
(2) in each case in which the new markets venture capital company 
makes, under this chapter, an investment in, or a loan or grant to, a 
business that is not located in a low-income geographic area, a report 
on the number and percentage of employees of the business who reside 
in a low-income geographic area. 
§ 30510. Regulations 
The Administrator may issue such regulations as the Administrator con-
siders necessary to carry out this chapter. 
§ 30511. Unlawful acts and omissions 
(a) PERSONS DEEMED TO COMMIT VIOLATION.—If a new markets ven-
ture capital company violates any provision of this subtitle (including a reg-
ulation issued under this subtitle) or of a participation agreement by reason 
of the new markets venture capital company’s failure to comply with terms 
of this subtitle (including a regulation) or of the participation agreement, 
or by reason of the new markets venture capital company’s engaging in any 
act or practice that constitutes or will constitute a violation of this subtitle 
(including a regulation) or of the participation agreement, the violation shall 
also be deemed to be a violation and an unlawful act committed by any per-
son that, directly or indirectly, authorizes, orders, participates in, causes, 
brings about, counsels, aids, or abets in the commission of the act, practice, 
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362 
or transaction that constitutes or will constitute, in whole or in part, the 
violation. 
(b) BREACH OF FIDUCIARY DUTY.—It shall be unlawful for an officer, 
director, employee, agent, or other participant in the management or con-
duct of the affairs of a new markets venture capital company to engage in 
any act or practice, or to omit any act or practice, in breach of the person’s 
fiduciary duty as officer, director, employee, agent, or participant if, as a 
result of the act, practice, or omission, the new markets venture capital 
company suffers or is in imminent danger of suffering financial loss or other 
damage. 
(c) OTHER UNLAWFUL ACTS.—Except with the written consent of the 
Administrator, it shall be unlawful— 
(1) for any person to take office as an officer, director, or employee 
of a new markets venture capital company, or to become an agent or 
participant in the conduct of the affairs or management of a new mar-
kets venture capital company, if the person— 
(A) has been convicted of— 
(i) a felony; or 
(ii) any other criminal offense involving dishonesty or 
breach of trust; or 
(B) has been found civilly liable in damages, or has been perma-
nently or temporarily enjoined by an order, judgment, or decree 
of a court of competent jurisdiction, by reason of any act or prac-
tice involving fraud or breach of trust; or 
(2) for any person to continue to serve in any of the capacities de-
scribed in paragraph (1), if— 
(A) the person is convicted of— 
(i) a felony; or 
(ii) any other criminal offense involving dishonesty or 
breach of trust; or 
(B) the person is found civilly liable in damages, or is perma-
nently or temporarily enjoined by an order, judgment, or decree 
of a court of competent jurisdiction, by reason of any act or prac-
tice involving fraud or breach of trust. 
§ 30512. Examinations 
(a) IN GENERAL.—A new markets venture capital company that partici-
pates in the program shall be subject to examinations made at the direction 
of the Investment Division of the Administration in accordance with this 
section and modeled after oversight developed for the small business invest-
ment company program. 
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363 
(b) ASSISTANCE OF PRIVATE SECTOR ENTITIES.—An examination under 
this section may be conducted with the assistance of a private sector entity 
that has both the qualifications and the expertise necessary to conduct such 
an examination. 
(c) COSTS.— 
(1) IN GENERAL.—The Administrator may assess the cost of an ex-
amination under this section (including compensation of an examiner) 
against the new markets venture capital company examined. 
(2) PAYMENT.—A new markets venture capital company against 
which the Administrator assesses costs under this paragraph shall pay 
the costs. 
(d) DEPOSIT OF AMOUNTS.—Amounts collected under this section shall 
be deposited in the account for salaries and expenses of the Administration. 
§ 30513. Removal or suspension of directors or officers 
Using the procedures for removing or suspending a director or an officer 
of a licensee under section 30320 of this title (to the extent that those pro-
cedures are not inconsistent with the requirements of this chapter), the Ad-
ministrator may remove or suspend a director or officer of a new markets 
venture capital company. 
§ 30514. Direct civil enforcement actions 
(a) FORFEITURE OF RIGHTS AND PRIVILEGES.— 
(1) IN GENERAL.—With respect to a new markets venture capital 
company that violates or fails to comply with any of the provisions of 
this subtitle (including a regulation issued under this subtitle) or of 
any participation agreement, the Administrator may— 
(A) void the participation agreement between the Administrator 
and the new markets venture capital company; and 
(B) cause the new markets venture capital company to forfeit 
all of the rights and privileges derived by the new markets venture 
capital company from this subtitle. 
(2) ADJUDICATION OF NONCOMPLIANCE.— 
(A) IN GENERAL.—Before the Administrator may cause a new 
markets venture capital company to forfeit rights or privileges 
under paragraph (1), a court of the United States of competent 
jurisdiction shall find that the new markets venture capital com-
pany committed a violation, or failed to comply, in a civil action 
brought for that purpose in the district, territory, or other place 
subject to the jurisdiction of the United States in which the prin-
cipal office of the new markets venture capital company is located. 
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364 
(B) PARTIES AUTHORIZED TO BRING CIVIL ACTION.—A civil ac-
tion brought by the United States under this subsection shall be 
brought by the Administrator or by the Attorney General. 
(b) INJUNCTIONS AND OTHER ORDERS.— 
(1) IN GENERAL.—If a new markets venture capital company or any 
other person engages or is about to engage in an act or practice that 
constitutes or will constitute a violation of any provision of this subtitle 
(including a regulation under this subtitle) or of any order issued under 
this subtitle, the Administrator may bring a civil action in a district 
court of the United States or a United States court of any place sub-
ject to the jurisdiction of the United States for an order enjoining the 
act or practice, or for an order enforcing compliance with the provision, 
regulation, or order, and the court shall have jurisdiction over the civil 
action and, on a showing by the Administrator that the new markets 
venture capital company or other person has engaged or is about to 
engage in any such act or practice, a permanent or temporary injunc-
tion, restraining order, or other order shall be granted without bond. 
(2) JURISDICTION OVER NEW MARKETS VENTURE CAPITAL COMPANY 
AND ITS ASSETS.—In a civil action under paragraph (1), the court 
may, to such extent as the court considers necessary, take exclusive ju-
risdiction of the new markets venture capital company and the assets 
of the new markets venture capital company, wherever located, and the 
court shall have jurisdiction to appoint a trustee or receiver to hold or 
administer the assets of the new markets venture capital company 
under the direction of the court. 
(3) TRUSTEESHIP OR RECEIVERSHIP OVER NEW MARKETS VENTURE 
CAPITAL COMPANY.—On request of the Administrator, the court may 
appoint the Administrator to act as trustee or receiver of the new mar-
kets venture capital company unless the court considers that such an 
appointment would be inequitable or otherwise inappropriate by reason 
of special circumstances involved in the civil action. 
CHAPTER 307—RENEWABLE FUEL CAPITAL 
INVESTMENT PILOT PROGRAM 
Sec. 
30701.
Definitions. 
30702.
Establishment of program. 
30703.
Approval of renewable fuel capital investment companies. 
30704.
Guarantee of renewable fuel capital investment company debentures. 
30705.
Trust certificates. 
30706.
Fees. 
30707.
Operational assistance grants. 
30708.
Bank participation. 
30709.
Reporting requirement. 
30710.
Regulations. 
30711.
Examinations. 
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30712.
Conflicts of interest; unlawful acts and omissions by officers, directors, employees, and 
agents; revocation and suspensions of licenses; cease and desist orders; injunctions 
and other orders. 
30713.
Removal or suspension of directors or officers. 
30714.
Termination. 
§ 30701. Definitions 
In this chapter: 
(1) ELIGIBLE COMPANY.—The term ‘‘eligible company’’ means a 
company that— 
(A) is a newly formed for-profit entity or a newly formed for- 
profit subsidiary of an existing entity; 
(B) has a management team with experience in alternative en-
ergy financing or relevant venture capital financing; and 
(C) has a primary objective of investment in smaller enterprises 
that research, manufacture, develop, produce, or bring to market 
goods, products, or services that generate or support the produc-
tion of renewable energy. 
(2) OPERATIONAL ASSISTANCE.—The term ‘‘operational assistance’’ 
means management, marketing, and other technical assistance that as-
sists a smaller enterprise with business development. 
(3) PARTICIPATION AGREEMENT.—The term ‘‘participation agree-
ment’’ means a participation agreement under section 30703(b)(4)(D) 
of this title. 
(4) PROGRAM.—The term ‘‘program’’ means the renewable fuel cap-
ital investment pilot program. 
(5) RENEWABLE ENERGY.—The term ‘renewable energy’ means en-
ergy derived from resources that are regenerative or that cannot be de-
pleted, including solar, wind, ethanol, and biodiesel fuels. 
(6) RENEWABLE FUEL CAPITAL INVESTMENT COMPANY.—The term 
‘‘renewable fuel capital investment company’’ means a company— 
(A) that— 
(i) has been granted final approval by the Administrator 
under section 30703(e) of this title; and 
(ii) has entered into a participation agreement with the Ad-
ministrator; or 
(B) that has received conditional approval under section 
30703(b) of this title. 
(7) STATE.—The term ‘‘State’’ means a State, the District of Co-
lumbia, Puerto Rico, the Virgin Islands, Guam, American Samoa, the 
Northern Mariana Islands, and any other commonwealth, territory, or 
possession of the United States. 
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(8) VENTURE CAPITAL.—The term ‘‘venture capital’’ means capital 
in the form of equity capital (as defined in section 30304(g)(1)(B) of 
this title) investments. 
§ 30702. Establishment of program 
(a) IN GENERAL.—The Administrator shall establish a renewable fuel 
capital investment program— 
(1) with the purpose of promoting the research, development, manu-
facture, production, and bringing to market of goods, products, or serv-
ices that generate or support the production of renewable energy by en-
couraging venture capital investments in smaller enterprises primarily 
engaged such activities; and 
(2) with the mission of addressing the unmet equity investment 
needs of smaller enterprises engaged in researching, developing, manu-
facturing, producing, and bringing to market goods, products, or serv-
ices that generate or support the production of renewable energy. 
(b) ACTIVITIES.—Under the program, the Administrator may— 
(1) enter into participation agreements with renewable fuel capital 
investment companies under section 30703(b)(4)(D) of this title for the 
purposes described in subsection (a); 
(2) guarantee debentures issued by renewable fuel capital investment 
companies under section 30704 of this title; and 
(3) make grants to renewable fuel investment capital companies 
under section 30707 of this title. 
§ 30703. Approval of renewable fuel capital investment com-
panies 
(a) APPLICATION.—An eligible company desiring to be designated as a re-
newable fuel capital investment company shall submit to the Administrator 
an application that includes— 
(1) a business plan describing how the applicant intends to make 
successful venture capital investments in smaller enterprises primarily 
engaged in the research, manufacture, development, production, or 
bringing to market of goods, products, or services that generate or sup-
port the production of renewable energy; 
(2) information regarding the relevant venture capital qualifications 
and general reputation of the applicant’s management; 
(3) a description of how the applicant intends to seek to address the 
unmet capital needs of the smaller enterprises served; 
(4) a proposal describing how the applicant intends to use the grant 
funds provided under this chapter to provide operational assistance to 
smaller enterprises financed by the applicant, including information re-
garding whether the applicant has employees with appropriate profes-
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