Sec. 3. Community development equity funds
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Section 105 of the Community Development Banking and Financial Institutions Act of 1994 ( 12 U.S.C. 4704 ) is amended by adding at the end the following: In this subsection, the term community development equity fund means a community development financial institution with a management entity that manages 1 or more investment funds where a majority of both the number and dollar volume of financial products are equity or near equity investments in small businesses located in an investment area or small businesses majority owned by a targeted population.
In an application for assistance under this subtitle, an applicant that is a community development equity fund shall demonstrate, to the satisfaction of the Secretary, that the current or proposed management team of the fund is qualified and has the knowledge, experience, and capability necessary for investing in the types of businesses contemplated by this Act, regulations implementing this Act, and the business plan of the fund. The management entity of the community development equity fund and all of its current and future managed investment funds shall be treated as one community development financial institution, regardless of the separation of the corporate structures, if the management entity maintains control over the investment decisions of the managed funds and has not made changes to its management team without approval of the Secretary. .
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Sec. 3
Community development equity funds
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