Sec. 6426. RURAL BUSINESS INVESTMENT PROGRAM
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## SEC. 6426 RURAL BUSINESS INVESTMENT PROGRAM ###
(a)Definitions Section 384A of the Consolidated Farm and Rural Development Act (7 U.S.C. 2009cc) is amended— ####
(1)in paragraph (2)— #####
(A)in the paragraph heading, by striking “venture”; and #####
(B)by striking “venture”; and ####
(2)by striking paragraph
(4)and inserting the following: > > #### “(4) Equity capital > > The term ‘equity capital’ means— > > > ##### “(A) > > common or preferred stock or a similar instrument, including subordinated debt with equity features; and > > > ##### “(B) > > any other type of equity-like financing that might be necessary to facilitate the purposes of this Act, excluding financing such as senior debt or other types of financing that competes with routine loanmaking of commercial lenders.” > . ###
(b)Purposes Section 384B of such Act (7 U.S.C. 2009cc-1) is amended— ####
(1)in paragraph (1), by striking “venture”; and ####
(2)in paragraph (2)— #####
(A)in the matter preceding subparagraph (A), by striking “venture”; and #####
(B)in subparagraph (B), by striking “venture”. ###
(c)Selection of Rural Business Investment Companies Section 384D(b)(1) of such Act (7 U.S.C. 2009cc-3(b)(1)) is amended by striking “developmental venture” and inserting “developmental”. ###
(d)Fees Section 384G of such Act (7 U.S.C. 2009cc-6) is amended— ####
(1)in subsections
(a)and (b), by striking “a fee that does not exceed $500” each place it appears and inserting “such fees as the Secretary considers appropriate, so long as those fees are proportionally equal for each rural business investment company,”; and ####
(2)in subsection (c)(2)— #####
(A)in subparagraph (B), by striking “solely to cover the costs of licensing examinations” and inserting “as the Secretary considers appropriate”; and #####
(B)by striking subparagraph
(C)and inserting the following: > > ##### “(C) > > shall be in such amounts as the Secretary considers appropriate.” > . ###
(e)Limitation on Rural Business Investment Companies Controlled by Farm Credit System Institutions Section 384J(c) of such Act (7 U.S.C. 2009cc-9(c)) is amended by striking “25” and inserting “50”. ###
(f)Flexibility on Sources of Investment or Capital Section 384J(a) of such Act (7 U.S.C. 2009cc-9(a)) is amended— ####
(1)by redesignating paragraphs
(1)and
(2)as subparagraphs
(A)and (B), respectively, and indenting appropriately; ####
(2)by striking the subsection designation and heading and all that follows through “ Except as ” in the matter preceding subparagraph
(A)(as so redesignated) and inserting the following: > > ### “(a) Investment > > > #### “(1) In general > > Except as” > ; and ####
(3)by adding at the end the following: > > #### “(2) Limitation on requirements > > The Secretary may not require that an entity described in paragraph
(1)provide investment or capital that is not required of other companies eligible to apply to operate as a rural business investment company under section 384D(a).” > .
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Sec. 6426
RURAL BUSINESS INVESTMENT PROGRAM
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