42 U.S.C. § 13822 : US Code - Section 13822: Provision of assistance

Search 42 U.S.C. § 13822 : US Code - Section 13822: Provision of assistance

(a) Authority
The Secretary of Health and Human Services (referred to in this
part as the "Secretary") may, in accordance with this subpart,
provide nonrefundable lines of credit to community development
corporations for the establishment, maintenance or expansion of
revolving loan funds to be utilized to finance projects intended to
provide business and employment opportunities for low-income,
unemployed, or underemployed individuals and to improve the quality
of life in urban and rural areas.
(b) Revolving loan funds
(1) Competitive assessment of applications
In providing assistance under subsection (a) of this section,
the Secretary shall establish and implement a competitive process
for the solicitation and consideration of applications from
eligible entities for lines of credit for the capitalization of
revolving funds.
(2) Eligible entities
To be eligible to receive a line of credit under this subpart
an applicant shall -
(A) be a community development corporation;
(B) prepare and submit an application to the Secretary that
shall include a strategic investment plan that identifies and
describes the economic characteristics of the target area to be
served, the types of business to be assisted and the impact of
such assistance on low-income, underemployed, and unemployed
individuals in the target area;
(C) demonstrate previous experience in the development of low-
income housing or community or business development projects
in a low-income community and provide a record of achievement
with respect to such projects; and
(D) have secured one or more commitments from local sources
for contributions (either in cash or in kind, letters of credit
or letters of commitment) in an amount that is at least equal
to the amount requested in the application submitted under
subparagraph (B).
(3) Exception
Notwithstanding the provisions of paragraph (2)(D), the
Secretary may reduce local contributions to not less than 25
percent of the amount of the line of credit requested by the
community development corporation if the Secretary determines
such to be appropriate in accordance with section 13826 of this
title.