View all text of Subchapter V [§ 695 - § 697g]
§ 695. State development companies
(a) Congressional finding and declaration of purpose
(b) Loans; obligations of development companies
(c) Maximum loans to development companies
(d) Eligibility for assistanceIn order to qualify for assistance under this subchapter, the development company must demonstrate that the project to be funded is directed toward at least one of the following economic development objectives—
(1) the creation of job opportunities within two years of the completion of the project or the preservation or retention of jobs attributable to the project;
(2) improving the economy of the locality, such as stimulating other business development in the community, bringing new income into the area, or assisting the community in diversifying and stabilizing its economy; or
(3) the achievement of one or more of the following public policy goals:
(A) business district revitalization,
(B) expansion of exports,
(C) expansion of minority business development or women-owned business development,
(D) rural development,
(E) expansion of small business concerns owned and controlled by veterans, as defined in section 632(q) of this title, especially service-disabled veterans, as defined in such section 632(q) of this title,
(F) enhanced economic competition, including the advancement of technology, plan retooling, conversion to robotics, or competition with imports,
(G) changes necessitated by Federal budget cutbacks, including defense related industries,
(H) business restructuring arising from Federally mandated standards or policies affecting the environment or the safety and health of employees,
(I) reduction of energy consumption by at least 10 percent,
(J) increased use of sustainable design, including designs that reduce the use of greenhouse gas emitting fossil fuels, or low-impact design to produce buildings that reduce the use of non-renewable resources and minimize environmental impact,
(K) plant, equipment and process upgrades of renewable energy sources such as the small-scale production of energy for individual buildings or communities consumption, commonly known as micropower, or renewable fuels producers including biodiesel and ethanol producers, or
(L) reduction of rates of unemployment in labor surplus areas, as such areas are determined by the Secretary of Labor.
In subparagraphs (J) and (K), terms have the meanings given those terms under the Leadership in Energy and Environmental Design (LEED) standard for green building certification, as determined by the Administrator.
If eligibility is based upon the criteria set forth in paragraph (2) or (3), the project need not meet the job creation or job preservation criteria developed by the Administration if the overall portfolio of the development company meets or exceeds such job creation or retention criteria.
(e) Creation or retention of jobs
(1) A project meets the objective set forth in subsection (d)(1) if the project creates or retains one job for every $65,000 guaranteed by the Administration, except that the amount is $100,000 in the case of a project of a small manufacturer.
(2) Paragraph (1) does not apply to a project for which eligibility is based on the objectives set forth in paragraph (2) or (3) of subsection (d), if the development company’s portfolio of outstanding debentures creates or retains one job for every $65,000 guaranteed by the Administration.
(3) For projects in Alaska, Hawaii, State-designated enterprise zones, empowerment zones and enterprise communities, labor surplus areas, as determined by the Secretary of Labor, and for other areas designated by the Administrator, the development company’s portfolio may average not more than $75,000 per job created or retained.
(4) Loans for projects of small manufacturers shall be excluded from calculations under paragraph (2) or (3).
(5) Under regulations prescribed by the Administrator, the Administrator may waive, on a case-by-case basis or by regulation, any requirement of this subsection (other than paragraph (4)). With respect to any waiver the Administrator is prohibited from adopting a dollar amount that is lower than the amounts set forth in paragraphs (1), (2), and (3).
(6) As used in this subsection, 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 Industrial Classification System; and
(B) all of the production facilities of which are located in the United States.
(Pub. L. 85–699, title V, § 501, Aug. 21, 1958, 72 Stat. 696; Pub. L. 100–590, title I, § 115(a), (b)(1), Nov. 3, 1988, 102 Stat. 2997; Pub. L. 101–574, title II, § 214(a), (b), Nov. 15, 1990, 104 Stat. 2821; Pub. L. 106–50, title IV, § 405, Aug. 17, 1999, 113 Stat. 246; Pub. L. 106–554, § 1(a)(9) [title III, § 302], Dec. 21, 2000, 114 Stat. 2763, 2763A–684; Pub. L. 108–447, div. K, title I, § 105, Dec. 8, 2004, 118 Stat. 3444; Pub. L. 110–140, title XII, § 1204(a), Dec. 19, 2007, 121 Stat. 1772; Pub. L. 111–5, div. A, title V, § 504(b), Feb. 17, 2009, 123 Stat. 156; Pub. L. 111–240, title I, § 1132, Sept. 27, 2010, 124 Stat. 2514.)