475 
prove applicants to operate as renewable fuel capital investment compa-
nies. 
(2) SELECTION
CRITERIA.—In conditionally approving companies 
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 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 the applicant 
will expand economic opportunities in the geographic areas in 
which the company 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. 
(3) NATIONWIDE DISTRIBUTION.—From among eligible companies 
submitting applications under subsection (a), the Administrator shall 
consider the selection criteria under paragraph (2) and shall, to the 
maximum extent practicable, approve at least 1 applicant from each ge-
ographic SBA region. 
(4) REQUIREMENTS FOR FINAL APPROVAL.— 
(A) IN GENERAL.—On granting conditional approval of an ap-
plicant, the Administrator shall grant each conditionally approved 
applicant 2 years to satisfy the requirements stated in this para-
graph. 
(B) CAPITAL REQUIREMENT.—A conditionally approved appli-
cant shall raise not less than $3,000,000 of private capital or 
binding capital commitments from 1 or more investors (other than 
Federal agencies) that meet criteria established by the Adminis-
trator. 
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476 
(C) RESOURCES FOR OPERATIONAL ASSISTANCE FROM OTHERS 
THAN THE ADMINISTRATOR.— 
(i) IN
GENERAL.—To provide operational assistance to 
smaller enterprises expected to be financed by the applicant, 
a conditionally approved applicant shall have binding commit-
ments (for contribution in cash or in-kind)— 
(I) from any source other than the Administrator that 
meet criteria established by the Administrator; and 
(II) payable or available over a multiyear period that 
the Administrator considers appropriate (not to exceed 
10 years). 
(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 primarily engaged in researching, manu-
facturing, developing, producing, or bringing to market goods, 
products, or services that generate or support the production 
of renewable energy. 
(c) FINAL APPROVAL.—The Administrator shall, with respect to each ap-
plicant conditionally approved under subsection (b)— 
(1) grant final approval to the conditionally approved applicant to 
operate as a renewable fuel capital investment company if the condi-
tionally approved applicant satisfies the requirements of paragraph (4) 
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477 
of subsection (b) on or before the expiration of the time period de-
scribed in that subsection; or 
(2) if the conditionally approved applicant fails to satisfy those re-
quirements on or before the expiration of that time period, revoke the 
conditional approval granted under subsection (b). 
§ 307104. Guarantee of renewable fuel capital investment 
company debentures 
(a) IN GENERAL.—To enable a renewable fuel capital investment com-
pany to make venture capital investments in smaller enterprises engaged in 
the research, development, manufacture, production, and bringing to market 
of goods, products, or services that generate or support the production of 
renewable energy, the Administrator may guarantee the timely payment of 
principal and interest, as scheduled, on debentures issued by the renewable 
fuel capital investment 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— 
(1) the term of any debenture guaranteed under this section shall 
not exceed 15 years; and 
(2) a debenture guaranteed under this section— 
(A) shall carry no front-end or annual fees; 
(B) shall be issued at a discount; 
(C) shall require no interest payments during the 5-year period 
beginning on the date on which the debenture is issued; 
(D) shall be prepayable without penalty after the end of the 1- 
year period beginning on the date on which the debenture is 
issued; and 
(E) shall require semiannual interest payments after the period 
described in subparagraph (C). 
(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 renewable fuel capital investment company only to the ex-
tent that the total face amount of outstanding guaranteed debentures 
of the renewable fuel capital investment company does not exceed 150 
percent of the private capital of the renewable fuel capital investment 
company, as determined by the Administrator. 
(2) TREATMENT OF CERTAIN FEDERAL FUNDS.—For purposes of 
paragraph (1), private capital includes capital that is considered to be 
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Federal funds (within the meaning of section 301101(16)(C)(iii) of this 
title) if the capital is contributed by an investor other than a Federal 
agency. 
§ 307105. 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 renewable fuel capital invest-
ment company and guaranteed by the Administrator under section 
307104 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 
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 
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