479 
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 1 or 
more agents to carry out on behalf of the Administrator the pool-
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 307104 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. 
§ 307106. Fees 
(a) IN GENERAL.—Except as provided in section 307105(d) of this title, 
the Administrator may charge such fees as the Administrator considers ap-
propriate with respect to any guarantee or grant issued under this chapter, 
in an amount established annually by the Administrator, as necessary to re-
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duce to zero the cost (as defined in section 502 of the Federal Credit Re-
form Act of 1990 (2 U.S.C. 661a)) to the Administrator of purchasing and 
guaranteeing debentures under this chapter, which amounts shall be paid 
to and retained by the Administrator. 
(b) OFFSET.—The Administrator may, as provided by subsection (c), off-
set fees charged and collected under subsection (a). 
(c) FEE CONTRIBUTION.— 
(1) IN GENERAL.—To the extent that amounts are made available 
to the Administrator for the purpose of fee contributions, the Adminis-
trator shall contribute to fees paid by the renewable fuel capital invest-
ment companies under subsection (a). 
(2) ANNUAL ADJUSTMENT.—Each fee contribution under paragraph 
(1) shall be effective for 1 fiscal year and shall be adjusted as nec-
essary for each fiscal year thereafter to ensure that amounts under 
paragraph (1) are fully used. The fee contribution for a fiscal year 
shall be based on the outstanding commitments made and the guaran-
tees and grants that the Administrator projects will be made during 
the fiscal year, given the program level authorized by law for that fiscal 
year and any other factors that the Administrator considers appro-
priate. 
§ 307107. Operational assistance grants 
(a) IN GENERAL.— 
(1) AUTHORITY.—The Administrator may make a grant to a renew-
able fuel capital investment company to enable the renewable fuel cap-
ital investment company to provide operational assistance to smaller 
enterprises financed, or expected to be financed, by the renewable fuel 
capital 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) GRANT AMOUNT.—The amount of a grant made under this sub-
section to a renewable fuel capital investment company shall be equal 
to the lesser of— 
(A) 10 percent of the resources (in cash or in kind) raised by 
the renewable fuel capital investment company under section 
307103(b)(4)(B) of this title; or 
(B) $1,000,000. 
(4) 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 (3), the Administrator shall 
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make pro rata reductions in the amounts otherwise payable to each re-
newable fuel capital investment company under that paragraph. 
(5) GRANTS TO CONDITIONALLY APPROVED COMPANIES.— 
(A) IN GENERAL.—Subject to subparagraphs (B) and (C), on 
the request of a renewable fuel capital investment company condi-
tionally approved under section 307103(b) of this title, the Admin-
istrator shall make a grant to the renewable fuel capital invest-
ment company under this subsection. 
(B) REPAYMENT BY RENEWABLE FUEL CAPITAL INVESTMENT 
COMPANIES NOT FINALLY APPROVED.—If a renewable fuel capital 
investment company receives a grant under this paragraph and 
does not enter into a participation agreement for final approval, 
the renewable fuel capital investment company shall, subject to 
controlling Federal law, repay the amount of the grant to the Ad-
ministrator. 
(C) DEDUCTION OF GRANT TO APPROVED COMPANY.—If a re-
newable fuel capital investment company receives a grant under 
this paragraph and receives final approval under section 
307103(c) of this title, the Administrator shall deduct the amount 
of the grant from the total grant amount that the renewable fuel 
capital investment company receives for operational assistance. 
(D) AMOUNT OF GRANT.—No renewable fuel capital investment 
company may receive a grant of more than $100,000 under this 
paragraph. 
(b) SUPPLEMENTAL GRANTS.— 
(1) IN GENERAL.—The Administrator may make a supplemental 
grant to a renewable fuel capital investment company under such terms 
as the Administrator may require, to provide additional operational as-
sistance to smaller enterprises financed, or expected to be financed, by 
the renewable fuel capital investment company. 
(2) MATCHING REQUIREMENT.—The Administrator may require, as 
a condition of a supplemental grant under this subsection, that the re-
newable fuel capital investment 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 sup-
plemental grant. 
(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 renewable fuel capital investment company. 
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§ 307108. 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 any renewable fuel capital investment 
company or in any entity established to invest solely in renewable fuel cap-
ital investment 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. 
§ 307109. Reporting requirement 
A renewable fuel capital investment company that participates in the pro-
gram shall provide the Administrator such information as the Administrator 
may require, including— 
(1) information relating to the measurement criteria that the renew-
able fuel capital investment company proposed in its program applica-
tion; and 
(2) in each case in which the renewable fuel capital investment com-
pany makes, under this chapter, an investment in, or a loan or a grant 
to, a business that is not primarily engaged in the research, develop-
ment, manufacture, or bringing to market or renewable energy sources, 
a report on the nature, origin, and revenues of the business in which 
investments are made. 
§ 307110. Regulations 
The Administrator may issue such regulations as the Administrator con-
siders necessary to carry out this chapter. 
§ 307111. Examinations 
(a) IN GENERAL.—A renewable fuel capital investment company that par-
ticipates in the program shall be subject to examinations made at the direc-
tion of the Investment Division of SBA in accordance with this section and 
modeled after oversight developed for the small business investment com-
pany program. 
(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 renewable fuel capital investment company examined. 
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483 
(2) PAYMENT.—A renewable fuel capital investment 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 SBA. 
§ 307112. Conflicts of interest; unlawful acts and omissions; 
revocation and suspensions of licenses; cease and 
desist orders; injunctions and other orders 
(a) ACTIONS AND PROCEDURES UNDER OTHER PROVISIONS.—To the ex-
tent that the actions and procedures described in sections 303113, 303117, 
303119, and 303121(b) of this title are not inconsistent with the require-
ments of this chapter, the Administrator may take those actions under those 
procedures in carrying out this chapter. 
(b) APPLICABILITY OF REQUIREMENTS UNDER OTHER PROVISIONS.—To 
the extent that the requirements described in sections 303113, 303117, 
303119, and 303121(b) of this title are not inconsistent with the require-
ments of this chapter, an officer, director, employee, agent, or other partici-
pant in the management or conduct of the affairs of a renewable fuel capital 
investment company shall be subject to the requirements of sections 
303113, 303117, 303119, and 303121(b) of this title. 
§ 307113. Removal or suspension of directors or officers 
Using the procedures for removing or suspending a director or an officer 
of a licensee under section 303120 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 renewable fuel 
capital investment company. 
§ 307114. Termination 
The program shall terminate at the end of the 2d full fiscal year after 
the date on which the Administrator establishes the program. 
Division C—Surety Bond Guarantee 
Program 
Chapter 321—Surety Bond Guarantee 
Program 
Sec. 
321101.
Definitions. 
321102.
Surety bond guarantees and indemnification agreements. 
321103.
Surety bond guarantee fund. 
§ 321101. Definitions 
In this chapter: 
(1) BID BOND.—The term ‘‘bid bond’’ means a bond conditioned on 
the bidder on a contract— 
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486 
(D) is an agent, independent agent, underwriter, or any other 
person authorized to act on behalf of a person described in sub-
paragraph (A), (B), or (C). 
§ 321102. Surety 
bond 
guarantees 
and 
indemnification 
agreements 
(a) GUARANTEE OF SURETY AGAINST LOSS FROM PRINCIPAL’S BREACH 
OF BOND.— 
(1) IN GENERAL.—The Administrator may, on such terms and con-
ditions as the Administrator may prescribe, guarantee and enter into 
commitments to guarantee a surety against loss resulting from a 
breach of the terms of a bond by a principal on any total work order 
or contract amount that at the time of bond execution does not exceed 
$6,500,000, as adjusted for inflation in accordance with section 1908 
of title 41. 
(2) INCREASED AMOUNT IF NECESSARY.—The Administrator may 
guarantee a surety under paragraph (1) for a total work order or con-
tract amount that does not exceed $10,000,000 if a contracting officer 
of a Federal agency certifies that a guarantee in the increased amount 
is necessary. 
(3) TERMS AND CONDITIONS.—The terms and conditions of guaran-
tees and commitments under paragraph (1) may vary from surety to 
surety on the basis of the Administrator’s experience with the par-
ticular surety. 
(4) ELIGIBILITY.—A guarantee of a bond shall not be issued under 
paragraph (1) unless— 
(A) the person that would be principal under the bond is a small 
business concern; 
(B) the bond is required for the person to bid on a contract or 
to serve as a prime contractor or subcontractor on a contract; 
(C) the person is not able to obtain the bond on reasonable 
terms and conditions without a guarantee under this section; and 
(D)(i) there is a reasonable expectation that the principal will 
perform the covenants and conditions of the contract with respect 
to which the bond is required; and 
(ii) the terms and conditions of the bond are reasonable in the 
light of the risks involved and the extent of the surety’s participa-
tion. 
(5) PREFERRED SURETY BOND GUARANTEE PROGRAM.— 
(A) IN GENERAL.—The Administrator may authorize a surety, 
without further approval by the Administrator, to issue, monitor, 
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487 
and service bonds that are subject to a guarantee under paragraph 
(1). 
(B) ACTION BY THE ADMINISTRATOR.—The Administrator shall 
promptly act on an application from a surety to participate in the 
preferred surety bond guarantee program, in accordance with cri-
teria and procedures established in regulations under subsection 
(d). 
(C) REDUCTION OF ALLOTMENT; TERMINATION.—The Adminis-
trator may reduce the allotment of bond guarantee authority or 
terminate the participation of a preferred surety based on the rate 
of participation of the preferred surety during the 4 most recent 
fiscal year quarters compared with the median rate of participa-
tion by the other preferred sureties. 
(b) INDEMNIFICATION OF PARTICIPATING SURETY AGAINST LOSS FROM 
AVOIDING BREACH.— 
(1) IN GENERAL.—In connection with the issuance of a guarantee 
to a surety, the Administrator may enter into an indemnification agree-
ment with a participating surety to indemnify the participating surety 
against a loss sustained by the participating surety in avoiding or at-
tempting to avoid a breach of the terms of a bond guaranteed by the 
Administrator under subsection (a). 
(2) DETERMINATION.—Before making any payment under this sub-
section, the Administrator shall determine that a breach of the terms 
of the bond was imminent. 
(3) APPROVAL.—A participating surety shall obtain approval from 
the Administrator before making any payments under this subsection 
unless the participating surety is a preferred surety. 
(4) LIMITATION ON AMOUNT OF PAYMENT.— 
(A) IN GENERAL.—Subject to subparagraph (B), no payment by 
the Administrator under this subsection shall exceed 10 percent of 
the contract price unless the Administrator determines that a 
greater payment should be made as a result of a finding by the 
Administrator that the participating surety’s loss sustained in 
avoiding or attempting to avoid the breach was necessary and rea-
sonable. 
(B) MAXIMUM AMOUNT.—In no event shall the Administrator 
pay a participating surety under this subsection an amount ex-
ceeding the guaranteed share of the bond available to the partici-
pating surety under subsection (a). 
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(c) AMOUNT OF LIABILITY OF THE ADMINISTRATOR.—A guarantee or in-
demnification agreement shall obligate the Administrator to pay to the par-
ticipating surety— 
(1) in the case of a preferred surety, an amount not to exceed 70 
percent of the amount of the loss incurred and paid by the preferred 
surety; or 
(2) in the case of a participating surety other than a preferred sur-
ety— 
(A) an amount not to exceed 90 percent of the amount of the 
loss incurred and paid by the participating surety (but in no event 
may the Administrator make a duplicate payment under sub-
section (b) or any other provision of this section); or 
(B) the amount that is equal to 90 percent of the loss incurred 
and paid by the participating surety, if— 
(i) the total amount of the contract at the time of execution 
of the bond or bonds is $100,000 or less; or 
(ii) the bond was issued to a small business concern owned 
and controlled by socially and economically disadvantaged in-
dividuals or to a qualified HUBZone small business concern. 
(d) REGULATIONS.— 
(1) IN GENERAL.—The Administrator may prescribe regulations for 
participating sureties. 
(2) CONTENTS.—The regulations under paragraph (1) shall require 
a participating surety to meet standards established by the Adminis-
trator for underwriting, claim practices, and loss ratios. 
(e) REIMBURSEMENT OF SURETY.— 
(1) IN GENERAL.—Except as provided in paragraph (2), the Admin-
istrator shall reimburse a participating surety as provided in a guar-
antee or indemnification agreement. 
(2) NO LIABILITY.—Subject to paragraph (3), the Administrator 
shall be relieved of liability (in whole or in part, at the discretion of 
the Administrator) under a guarantee or indemnification agreement 
if— 
(A) the participating surety obtained the guarantee or indem-
nification agreement, or applied for reimbursement, by fraud or 
material misrepresentation; 
(B) the total contract amount at the time of execution of the 
bond or bonds exceeds $6,500,000; 
(C) the participating surety has breached a material term or 
condition of the guarantee agreement or indemnification agree-
ment; or 
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489 
(D) the participating surety has substantially violated the regu-
lations prescribed under subsection (d). 
(3) LIMITATION ON DENIAL OF LIABILITY.—In the case of a bond 
made or executed with the prior approval of the Administrator, the Ad-
ministrator shall not deny liability to a surety based on material infor-
mation that was provided as part of the guarantee application. 
(f) REIMBURSEMENT PROCEDURE.—The Administrator may, on such 
terms and conditions as the Administrator may prescribe, establish a proce-
dure for reimbursing a participating surety for the paid losses of the partici-
pating surety billed each month, based on prior monthly payments to the 
participating surety, with subsequent adjustments after such reimburse-
ment. 
(g) REPORTING BY PARTICIPATING SURETIES; AUDITS.— 
(1) REPORTING BY PARTICIPATING SURETIES.—A participating sur-
ety shall submit reports to the Administrator at such times and in such 
form as the Administrator may require. 
(2) AUDITS.— 
(A) IN GENERAL.—The Administrator may at all reasonable 
times audit, in the offices of a participating surety, all records rel-
evant to SBA’s guarantee, commitments to guarantee, and indem-
nification agreements issued to or entered into with the partici-
pating surety under this section. 
(B) PREFERRED SURETY BOND GUARANTEE PROGRAM PARTICI-
PANTS.—A preferred surety shall be audited at least once every 
3 years by examiners selected and approved by the Administrator. 
(h) ADMINISTRATIVE PROVISIONS.—The Administrator shall— 
(1) administer the program on a prudent and economically justifiable 
basis; and 
(2) establish such fees for small business concerns and premiums for 
participating sureties as the Administrator considers reasonable and 
necessary, to be payable at such times and under such conditions as 
the Administrator may determine. 
§ 321103. Surety bond guarantee fund 
(a) IN GENERAL.—There is created in the Treasury a separate fund for 
guarantees, which shall be available to the Administrator without fiscal year 
limitation as a revolving fund for the purposes of the program. 
(b) DEPOSIT
OF AMOUNTS RECEIVED
BY
THE ADMINISTRATOR.—All 
amounts received by the Administrator (including any money, property, or 
assets derived by the Administrator from operations in connection with the 
program) shall be deposited in the fund. 
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490 
(c) USE OF FUND.—All expenses and payments, excluding administrative 
expenses, pursuant to operations of the Administrator under the program 
shall be paid from the fund. 
(d) APPROPRIATIONS.—Such sums as may be appropriated to the Fund 
to carry out the programs authorized by this chapter shall be without fiscal 
year limitation. 
Division D—Certified Development 
Company Program 
Chapter 331—Certified Development 
Company Program 
Sec. 
331101.
Definitions. 
331102.
Establishment of program. 
331103.
Debenture guarantees. 
331104.
Private debenture sales. 
331105.
Pooling of debentures. 
331106.
Prohibition of acceptance of funding with certain conditions, priorities, restrictions, 
or requirements. 
331107.
Accredited lenders program. 
331108.
Premier certified lenders program. 
331109.
Foreclosure and liquidation of loans. 
§ 331101. Definitions 
In this chapter: 
(1) ACCREDITED LENDER.—The term ‘‘accredited lender’’ means a 
qualified development company that is designated as an accredited 
lender under section 331107 of this title. 
(2) CERTIFIED DEVELOPMENT COMPANY.—The term ‘‘certified de-
velopment company’’ means a qualified development company that the 
Administrator certifies as meeting criteria established under this chap-
ter to receive assistance under the program. 
(3) COMMERCIAL LOAN.—The term ‘‘commercial loan’’ means a loan 
from a private source. 
(4) DEVELOPMENT COMPANY.—The term ‘‘development company’’ 
means an enterprise that is incorporated under State law with the au-
thority to promote and assist the growth and development of small 
business concerns in the area covered by the operations of the enter-
prise. 
(5) GUARANTEED DEBENTURE.—The term ‘‘guaranteed debenture’’ 
means a debenture that is guaranteed by the Administrator under the 
program. 
(6) PREMIER
CERTIFIED
LENDER.—The term ‘‘premier certified 
lender’’ means a certified development company that is designated as 
a premier certified lender under section 331108 of this title. 
(7) PROGRAM.—The term ‘‘program’’ means the certified develop-
ment company program. 
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491 
(8) PROJECT.—The term ‘‘project’’ means a project described in sec-
tion 331103(a)(1) of this title. 
(9) QUALIFIED DEVELOPMENT COMPANY.— 
(A) IN GENERAL.—The term ‘‘qualified development company’’ 
means a development company that, as determined by the Admin-
istrator, has— 
(i) a full-time professional staff; 
(ii) professional management ability (including adequate 
accounting, legal, and business-servicing abilities); and 
(iii) a board of directors, or membership, that meets on a 
regular basis to make management decisions for the develop-
ment company, including decisions relating to the making and 
servicing of loans by the development company. 
(B) DEVELOPMENT COMPANIES IN A RURAL AREA.—A develop-
ment company in a rural area that does not satisfy the require-
ments of clauses (i) and (ii) of subparagraph (A) shall be deemed 
to satisfy those requirements if the development company con-
tracts with a certified development company that does satisfy 
those requirements and is located in the same general area to pro-
vide the services described in those clauses. 
(10) SMALL
MANUFACTURER.—The term ‘‘small manufacturer’’ 
means a small business concern— 
(A) the primary business of which is classified in sector 31, 32, 
or 33 of the North American Industry Classification System; and 
(B) all of the production facilities of which are located in the 
United States. 
§ 331102. Establishment of program 
There is established within SBA a certified development company pro-
gram for the purpose of fostering economic development and creating and 
preserving job opportunities in both urban and rural areas by providing 
long-term financing for small business concerns. 
§ 331103. Debenture guarantees 
(a) IN GENERAL.— 
(1) AUTHORITY.—The Administrator may guarantee the timely pay-
ment of all principal and interest as scheduled on a debenture issued 
by a certified development company the proceeds of which are used to 
make a loan to a small business concern to be used for a project for 
a sound business purpose, approved by the Administrator, of plant ac-
quisition, construction, conversion, or expansion (including land acqui-
sition). 
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492 
(2) LIMITATION.—The Administrator shall not guarantee a deben-
ture for the purposes of making a loan described in paragraph (1) un-
less necessary funds for making the loan are not available to the cer-
tified development company from a private source on reasonable terms. 
(3) TERMS AND CONDITIONS.—A debenture guarantee may be made 
on such terms and conditions as the Administrator may by regulation 
determine to be appropriate. 
(4) FULL FAITH AND CREDIT OF THE UNITED STATES.—The full 
faith and credit of the United States is pledged to the payment of all 
amounts guaranteed under this subsection. 
(5) SUBORDINATION.—A guaranteed debenture may be subordinated 
by the Administrator to any other debenture, promissory note, or other 
debt or obligation of the certified development company that issues the 
debenture. 
(b) ELIGIBILITY FOR ASSISTANCE.— 
(1) ECONOMIC DEVELOPMENT OBJECTIVES.— 
(A) DEFINITIONS.—In subclauses (IX) and (X) of subpara-
graph (B)(iii), terms have the meanings given the terms under the 
Leadership in Energy and Environmental Design standard for 
green building certification, as determined by the Administrator. 
(B) ELIGIBILITY.—To be eligible for assistance under the pro-
gram, a certified development company shall demonstrate that the 
project to be funded with the proceeds of a guaranteed debenture 
is directed toward at least 1 of the following economic development 
objectives: 
(i) JOB CREATION OR RETENTION OBJECTIVE.—The cre-
ation of job opportunities within 2 years after completion of 
the project, or the retention of jobs attributable to the 
project, as provided in paragraph (3). 
(ii) COMMUNITY ECONOMIC IMPROVEMENT OBJECTIVE.— 
Improvement of the economy of the local community, such as 
stimulating other business development in the community, 
bringing new income into the area, or assisting the commu-
nity in diversifying and stabilizing its economy. 
(iii) PUBLIC POLICY OBJECTIVE.—The achievement of 1 or 
more of the following public policy objectives: 
(I) Business district revitalization. 
(II) Expansion of exports. 
(III) Expansion of minority business development or 
women-owned business development. 
(IV) Rural development. 
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493 
(V) Expansion of small business concerns owned and 
controlled by veterans, especially small business concerns 
owned and controlled by service-disabled veterans. 
(VI) Enhancement of economic competition, including 
the advancement of technology, plan retooling, conver-
sion to robotics, and competition with imports. 
(VII) Changes necessitated by Federal budget cut-
backs, including cutbacks in defense-related industries. 
(VIII) Business restructuring arising from Federally 
mandated standards or policies affecting the environment 
or the safety and health of employees. 
(IX) Reduction of energy consumption by at least 10 
percent. 
(X) Increased use of sustainable design, including— 
(aa) designs that reduce the use of greenhouse 
gas emitting fossil fuels; and 
(bb) low-impact designs to produce buildings that 
reduce the use of nonrenewable resources and mini-
mize environmental impact. 
(XI) Plant, equipment, and process upgrades of re-
newable energy sources such as— 
(aa) the small-scale production of energy for indi-
vidual buildings or communities consumption, com-
monly known as micropower; and 
(bb) renewable fuels producers, including biodiesel 
and ethanol producers. 
(XII) Reduction of rates of unemployment in labor 
surplus areas, as those areas are determined by the Sec-
retary of Labor. 
(2) COMMUNITY ECONOMIC IMPROVEMENT OBJECTIVE; PUBLIC POL-
ICY OBJECTIVE.—If eligibility is based on the criteria stated in clause 
(ii) or (iii) of paragraph (1)(B), the project need not meet the job cre-
ation or job preservation criteria developed by the Administrator if the 
overall portfolio of the development company meets or exceeds those job 
creation or retention criteria. 
(3) JOB CREATION OR RETENTION OBJECTIVE.— 
(A) PROJECT STANDARD.—A project meets the job creation or 
retention objective under paragraph (1)(B)(i)) if the project cre-
ates or retains— 
(i) 1 job for every $65,000 guaranteed by the Adminis-
trator; or 
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494 
(ii) in the case of a project of a small manufacturer, 1 job 
for every $100,000 guaranteed by the Administrator. 
(B) PORTFOLIO
STANDARD.—A project need not meet the 
project standard under subparagraph (A) if— 
(i) eligibility of the project is based on the community eco-
nomic improvement objective under paragraph (1)(B)(ii) or 1 
or more of the public policy objectives under paragraph 
(1)(B)(iii); and 
(ii) after the loan is made for the project, the certified de-
velopment company’s portfolio of outstanding guaranteed de-
bentures, excluding guaranteed debentures for loans to small 
manufacturers, creates or retains— 
(I) 1 job for every $65,000 guaranteed by the Admin-
istrator; or 
(II) in the case of a project in Alaska, Hawaii, a 
State-designated enterprise zone, an empowerment zone, 
an enterprise community, or labor surplus area, as deter-
mined by the Secretary of Labor, or in any other area 
designated by the Administrator, 1 job for every $75,000 
guaranteed by the Administrator. 
(4) WAIVER OF REQUIREMENTS.— 
(A) IN GENERAL.—Under regulations prescribed by the Admin-
istrator, the Administrator may waive, on a case-by-case basis or 
by regulation, any requirement of paragraph (3) (other than the 
requirement that a calculation under paragraph (3)(B)(ii)(II) ex-
clude debentures for loans to small manufacturers). 
(B) DOLLAR AMOUNTS.—The Administrator may not, in con-
nection with any waiver under subparagraph (A), adopt any dollar 
amount that is lower than a dollar amount specified in paragraph 
(3). 
(c) CRITERIA FOR ASSISTANCE.— 
(1) IN GENERAL.—A certified development company shall meet cri-
teria established by the Administrator, including such an extent of par-
ticipation to be required or amount of paid-in capital to be used in each 
instance as the Administrator determines to be reasonable. 
(2) SMALL BUSINESS CONCERN FUNDS.—In the case of any project 
of a small business concern financed under the program, the small 
business concern (or its owners, stockholders, or affiliates) receiving as-
sistance through a body authorized by this chapter shall provide— 
(A) at least 15 percent of the total financed cost of the project 
if the small business concern has been in operation for a period 
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