691 
rural areas, with an emphasis on smaller enter-
prises. 
‘‘(2) APPLICATION.—To participate, as a rural 
business investment company, in the program estab-
lished under this section, a company meeting the eli-
gibility requirements of paragraph (1) shall submit 
an application to the Secretary that includes— 
‘‘(A) a business plan describing how the 
company intends to make successful develop-
mental venture capital investments in identified 
rural areas; 
‘‘(B) information regarding the community 
development finance or relevant venture capital 
qualifications and general reputation of the 
management of the company; 
‘‘(C) a description of how the company in-
tends to work with community-based organiza-
tions and local entities (including local economic 
development companies, local lenders, and local 
investors) and to seek to address the unmet eq-
uity capital needs of the communities served; 
‘‘(D) a proposal describing how the com-
pany intends to use the grant funds provided 
under this section to provide operational assist-
ance to smaller enterprises financed by the 
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692 
company, 
including 
information 
regarding 
whether the company intends to use licensed 
professionals, as necessary, on the staff of the 
company or from an outside entity; 
‘‘(E) with respect to binding commitments 
to be made to the company under this section, 
an estimate of the ratio of cash to in-kind con-
tributions; 
‘‘(F) a description of the criteria to be 
used to evaluate whether and to what extent the 
company meets the purposes of the program es-
tablished under this section; 
‘‘(G) information regarding the manage-
ment and financial strength of any parent firm, 
affiliated firm, or any other firm essential to 
the success of the business plan of the com-
pany; and 
‘‘(H) such other information as the Sec-
retary may require. 
‘‘(3) STATUS.—Not later than 90 days after the 
initial receipt by the Secretary of an application 
under this subsection, the Secretary shall provide to 
the applicant a written report describing the status 
of the application and any requirements remaining 
for completion of the application. 
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693 
‘‘(4) MATTERS CONSIDERED.—In reviewing and 
processing any application under this subsection, the 
Secretary shall— 
‘‘(A) determine whether— 
‘‘(i) the applicant meets the require-
ments of paragraph (5); and 
‘‘(ii) the management of the applicant 
is qualified and has the knowledge, experi-
ence, and capability necessary to comply 
with this section; 
‘‘(B) take into consideration— 
‘‘(i) the need for and availability of fi-
nancing for rural business concerns in the 
geographic area in which the applicant is 
to commence business; 
‘‘(ii) the general business reputation 
of the owners and management of the ap-
plicant; and 
‘‘(iii) the probability of successful op-
erations of the applicant, including ade-
quate profitability and financial soundness; 
and 
‘‘(C) not take into consideration any pro-
jected shortage or unavailability of grant funds 
or leverage. 
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694 
‘‘(5) APPROVAL; LICENSE.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), the Secretary may approve 
an applicant to operate as a rural business in-
vestment company under this subtitle and li-
cense the applicant as a rural business invest-
ment company, if— 
‘‘(i) the Secretary determines that the 
application satisfies the requirements of 
paragraph (2); 
‘‘(ii) the area in which the rural busi-
ness investment company is to conduct its 
operations, and establishment of branch of-
fices or agencies (if authorized by the arti-
cles), are approved by the Secretary; and 
‘‘(iii) the applicant enters into a par-
ticipation agreement with the Secretary. 
‘‘(B) CAPITAL REQUIREMENTS.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
any other provision of this section, the Sec-
retary may approve an applicant to operate 
as a rural business investment company 
under this section and designate the appli-
cant as a rural business investment com-
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pany, if the Secretary determines that the 
applicant— 
‘‘(I) has private capital as deter-
mined by the Secretary; 
‘‘(II) would otherwise be ap-
proved under this section, except that 
the applicant does not satisfy the re-
quirements of subsection (i)(3); and 
‘‘(III) has a viable business plan 
that— 
‘‘(aa) 
reasonably 
projects 
profitable operations; and 
‘‘(bb) has a reasonable time-
table for achieving a level of pri-
vate capital that satisfies the re-
quirements of subsection (i)(3). 
‘‘(ii) LEVERAGE.—An applicant ap-
proved under clause (i) shall not be eligible 
to receive leverage under this section until 
the applicant satisfies the requirements of 
section 3602(i)(3). 
‘‘(iii) GRANTS.—An applicant ap-
proved under clause (i) shall be eligible for 
grants under subsection (h) in proportion 
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