Sec. 201. Authorities relating to provision of support
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In carrying out this title, the Corporation shall— exercise the authorities of the Corporation only to the extent that such an exercise of authority— carries out a policy of the Corporation, as described in section 102(c); mitigates risks to the taxpayers of the United States by sharing risks with private sector entities through co-financing and structuring of tools; and ensures that support provided under this title is in addition to private sector resources by mobilizing private capital that would otherwise not be deployed without such support; and determine— the character and necessity of the obligations and expenditures of the Corporation; and the manner in which the obligations and expenditures described in subparagraph
(A)shall be incurred, allowed, and paid. The Corporation may make loans or guaranties upon such terms and conditions as the Corporation may determine. Loans and guaranties issued under paragraph
(1)shall be subject to the requirements of the Federal Credit Reform Act of 1990 ( 2 U.S.C. 661 et seq. ). The Corporation may create programs, facilities, or other entities determined necessary by the Corporation, for the purpose of providing liquidity in markets and sectors integral to the mission of the Corporation, by— purchasing obligations or other interests directly from the issuers of those obligations or other interests; purchasing obligations or other interests in secondary markets or otherwise; or making loans, including loans or other advances secured by collateral. The Corporation may, as a minority investor, support projects with funds or use other mechanisms for the purpose of purchasing, and may make and fund commitments to purchase, invest in, make pledges in respect of, or otherwise acquire, equity or quasi-equity securities or shares or financial interests of any entity, including as a limited partner or other investor in investment funds, upon such terms and conditions as the Corporation may determine. The Corporation shall develop guidelines and criteria to require that the use of the authority under paragraph
(1)with respect to a project has a clearly defined developmental purpose, taking into account the following objectives: The support for the project would be more likely than not to substantially reduce or overcome the effect of an identified market imperfection. The project would not have proceeded, or would have been substantially delayed, without the support. The support will contribute positively to the long-term commercial sustainability of the target industry in the United States. The support furthers a policy of the Corporation described in section 102(c). The aggregate amount of support provided under this subsection with respect to any project shall not exceed 30 percent of the aggregate amount of all equity investment made to the project at the time that the Corporation approves support of the project, except that such percentage may be raised with the unanimous consent of the Board. Support provided under this subsection shall be limited to not more than 35 percent of the aggregate exposure of the Corporation on the date on which that support is provided, except that such percentage may be raised with the unanimous consent of the Board. The Corporation shall seek to sell and liquidate any support for a project provided under this subsection as soon as commercially feasible, taking into consideration— the actions of other similar investors in the project; how the interests of the taxpayers of the United States will be served through equity investments; and the national security interests of the United States. The Corporation shall create a project-specific timetable for support provided under this subsection. In order to carry out the policies described in section 102(c), the Corporation may initiate and support, through financial participation, incentive grants, or otherwise, and under such terms and conditions as the Corporation may determine, feasibility studies for the planning, development, and management of, and procurement for, potential bilateral and multilateral projects eligible for support under this title, including training activities undertaken in connection with those projects, for the purpose of promoting investment in those projects and the identification, assessment, surveying, and promotion of private investment opportunities, utilizing wherever feasible and effective, the facilities of private investors. The Corporation shall, to the maximum extent practicable, require any person receiving funds under this subsection to— share the costs of feasibility studies and other project planning services for which support is provided under this subsection; and if the person succeeds in project implementation, reimburse the Corporation for the amount of support provided by the Corporation to the person under this subsection. The Corporation may administer and manage special projects and programs in support of specific transactions undertaken by the Corporation, including programs of financial and advisory support that provide private technical, professional, or managerial assistance in the development of human resources, skills, technology, capital savings, or intermediate financial and investment institutions or cooperatives. With respect to asset acquisition, the Corporation may— acquire tangible and intangible assets at fair market value; and engage in purchase order guarantees. The Corporation may, following consultation with the Secretary of the Treasury and the heads of other relevant Federal departments or agencies, establish and operate enterprise funds in accordance with this subsection. Nothing in this subsection may be construed to make— an enterprise fund established or operated by the Corporation an agency or establishment of the United States Government; or any officer, employee, or member of the board of directors of an enterprise fund described in subparagraph
(A)an officer or employee of the United States. The Corporation, subject to the approval of the Board, may designate private, nonprofit organizations as eligible to receive support under this subsection for the following purposes: To promote the development of domestic manufacturing, the commercialization of advanced technologies, and the building of resilient supply chains. To facilitate access to credit or capital for small- and medium-sized enterprises— in industry sectors or geographic areas with limited means of accessing credit on market terms; or with owners who are members of demographic groups that have historically had limited access to private capital. To complement the work of the Small Business Administration and the Economic Development Administration of the Department of Commerce to improve the overall business-enabling environment by financing the expansion of the private business sector. To make financially sustainable investments designed to generate measurable social benefits and build technical capacity in addition to financial returns. Funds made available to an enterprise fund established or operated under this subsection shall be expended at the minimum rate necessary to make timely payments for projects and activities carried out under this subsection. Not more than 3 percent per annum of the funds made available to an enterprise fund established or operated under this subsection may be obligated or expended for the administrative expenses of the enterprise fund. Each enterprise fund established or operated under this subsection shall be governed by a board of directors comprised of private citizens of the United States— who— shall be appointed by the President after consultation with the chairmen and ranking members of the appropriate congressional committees; have pursued careers in innovative technologies or manufacturing; and have demonstrated expertise in investment activities; and a majority of whom shall— be citizens of the United States; and have relevant experience relating to the purposes described in paragraph (3). Not later than 1 year after the date on which an enterprise fund is established under this subsection, and annually thereafter until the enterprise fund terminates in accordance with paragraph (9), the board of directors of the enterprise fund shall— submit to the appropriate congressional committees a report— detailing the administrative expenses of the enterprise fund during the year covered by the report; describing the operations, activities, engagement with civil society and relevant local private sector entities, development objectives and outcomes, financial condition, and accomplishments of the enterprise fund during the year covered by the report; describing the results of any audit conducted under paragraph
(7)during the year covered by the report; and describing how audits conducted under paragraph
(7)during the year covered by the report are informing the operations and activities of the enterprise fund for the year in which the report is submitted; and publish, on a publicly available internet website of the enterprise fund, each report required under subparagraph (A). The Inspector General of the Corporation shall conduct periodic audits of the activities of each enterprise fund established under this subsection. In conducting an audit under clause (i), the Inspector General shall assess whether the activities of the enterprise fund— support the purposes described in paragraph (3); result in profitable private sector investing; and generate measurable economic and social benefits. The Corporation shall ensure that each enterprise fund receiving support under this subsection— keeps separate accounts with respect to that support; and maintains such records as may be reasonably necessary to facilitate effective audits under this paragraph. Any funds resulting from any liquidation, dissolution, or winding up of an enterprise fund, in whole or in part, shall be returned to the Corporate Capital Account established under section 304(b). The authority of an enterprise fund to provide support under this subsection shall terminate on the earlier of— the date that is 10 years after the date on which amounts from the enterprise fund are first expended; or the date on which the enterprise fund is liquidated. With respect to structured finance, the Corporation may— securitize an investment described in any of subsections
(a)through (h); and design and provide seed funding for new financing vehicles that aggregate invested funds from businesses with not more than 500 employees in order to attract larger private capital providers, such as pension funds. The Corporation, in cooperation with appropriate departments, agencies, and instrumentalities of the United States, as well as private entities and others, shall undertake activities to broaden the participation of United States small businesses and cooperatives, and other small United States investors, in the development of small private enterprise. The Corporation shall collect data on the involvement of minority- and women-owned businesses in projects, including— the amount of insurance and financing provided by the Corporation to those businesses in connection with projects supported by the Corporation; and to the extent such information is available, the involvement of those businesses in procurement activities conducted or supported by the Corporation. The Corporation shall include, in each annual report submitted under section 403, the aggregate data collected under this paragraph, in such form as to quantify the effectiveness of the outreach activities of the Corporation with respect to minority- and women-owned businesses. In addition to the other authorities under this section, the Corporation may, as the Chief Executive Officer of the Corporation determines necessary, create or participate in any other investment vehicle used by investors in the private sector, as determined by the Chief Executive Officer.
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Sec. 201
Authorities relating to provision of support
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