683 
‘‘(II) the contributed capital of the 
partners of a partnership rural business in-
vestment company; or 
‘‘(III) the equity investment of the 
members of a limited liability company 
rural business investment company; and 
‘‘(ii) unfunded binding commitments 
from investors that meet criteria estab-
lished by the Secretary to contribute cap-
ital to the rural business investment com-
pany, except that— 
‘‘(I) unfunded commitments may 
be counted as private capital for pur-
poses of approval by the Secretary of 
any request for leverage; but 
‘‘(II) leverage shall not be funded 
based on the commitments. 
‘‘(B) EXCLUSIONS.—The term ‘private 
capital’ does not include— 
‘‘(i) any funds borrowed by a rural 
business investment company from any 
source; 
‘‘(ii) any funds obtained through the 
issuance of leverage; or 
VerDate Mar 15 2010 
23:29 Jul 08, 2013
Jkt 029200
PO 00000
Frm 00683
Fmt 6652
Sfmt 6201
E:\BILLS\H2498.IH
H2498
sroberts on DSK5SPTVN1PROD with BILLS
684 
‘‘(iii) any funds obtained directly or 
indirectly from the Federal Government or 
any State (including by a political subdivi-
sion, agency, or instrumentality of the 
Federal Government or a State), except 
for— 
‘‘(I) funds obtained from the 
business revenues (excluding any gov-
ernmental appropriation) of any Fed-
erally chartered or government-spon-
sored enterprise established prior to 
the date of enactment of the Agri-
culture Reform, Food, and Jobs Act 
of 2013; 
‘‘(II) funds invested by an em-
ployee welfare benefit plan or pension 
plan; and 
‘‘(III) any qualified nonprivate 
funds (if the investors of the qualified 
nonprivate funds do not control, di-
rectly or indirectly, the management, 
board of directors, general partners, 
or members of the rural business in-
vestment company). 
VerDate Mar 15 2010 
23:29 Jul 08, 2013
Jkt 029200
PO 00000
Frm 00684
Fmt 6652
Sfmt 6201
E:\BILLS\H2498.IH
H2498
sroberts on DSK5SPTVN1PROD with BILLS
685 
‘‘(12) QUALIFIED
NONPRIVATE
FUNDS.—The 
term ‘qualified nonprivate funds’ means any— 
‘‘(A) funds directly or indirectly invested in 
any applicant or rural business investment com-
pany on or before the date of enactment of the 
Agriculture Reform, Food, and Jobs Act of 
2013 by any Federal agency, other than the 
Department, under a provision of law explicitly 
mandating the inclusion of those funds in the 
definition of the term ‘private capital’; and 
‘‘(B) funds invested in any applicant or 
rural business investment company by 1 or 
more entities of any State (including by a polit-
ical subdivision, agency, or instrumentality of 
the State and including any guarantee extended 
by those entities) in an aggregate amount that 
does not exceed 33 percent of the private cap-
ital of the applicant or rural business invest-
ment company. 
‘‘(13) RURAL BUSINESS CONCERN.—The term 
‘rural business concern’ means— 
‘‘(A) a public, private, or cooperative for- 
profit or nonprofit organization; 
‘‘(B) a for-profit or nonprofit business con-
trolled by an Indian tribe; or 
VerDate Mar 15 2010 
23:29 Jul 08, 2013
Jkt 029200
PO 00000
Frm 00685
Fmt 6652
Sfmt 6201
E:\BILLS\H2498.IH
H2498
sroberts on DSK5SPTVN1PROD with BILLS
686 
‘‘(C) any other person or entity that pri-
marily operates in a rural area, as determined 
by the Secretary. 
‘‘(14) RURAL
BUSINESS
INVESTMENT
COM-
PANY.—The term ‘rural business investment com-
pany’ means a company that— 
‘‘(A) has been granted final approval by 
the Secretary under subsection (d)(5); and 
‘‘(B) has entered into a participation 
agreement with the Secretary. 
‘‘(15) SMALLER ENTERPRISE.— 
‘‘(A) IN GENERAL.—The term ‘smaller en-
terprise’ means any rural business concern that, 
together with its affiliates— 
‘‘(i) has— 
‘‘(I) a net financial worth of not 
more than $6,000,000, as of the date 
on which assistance is provided under 
this section to the rural business con-
cern; and 
‘‘(II) except as provided in sub-
paragraph (B), an average net income 
for the 2-year period preceding the 
date on which assistance is provided 
under this section to the rural busi-
VerDate Mar 15 2010 
23:29 Jul 08, 2013
Jkt 029200
PO 00000
Frm 00686
Fmt 6652
Sfmt 6201
E:\BILLS\H2498.IH
H2498
sroberts on DSK5SPTVN1PROD with BILLS
687 
ness concern, of not more than 
$2,000,000, after Federal income 
taxes (excluding any carryover losses); 
or 
‘‘(ii) satisfies the standard industrial 
classification size standards established by 
the Administrator of the Small Business 
Administration for the industry in which 
the rural business concern is primarily en-
gaged. 
‘‘(B) EXCEPTION.—For purposes of sub-
paragraph (A)(i)(II), if the rural business con-
cern is not required by law to pay Federal in-
come taxes at the enterprise level, but is re-
quired to pass income through to the share-
holders, partners, beneficiaries, or other equi-
table owners of the business concern, the net in-
come of the business concern shall be deter-
mined by allowing a deduction in an amount 
equal to the total of— 
‘‘(i) if the rural business concern is 
not required by law to pay State (and 
local, if any) income taxes at the enterprise 
level, the product obtained by multi-
plying— 
VerDate Mar 15 2010 
23:29 Jul 08, 2013
Jkt 029200
PO 00000
Frm 00687
Fmt 6652
Sfmt 6201
E:\BILLS\H2498.IH
H2498
sroberts on DSK5SPTVN1PROD with BILLS