---
kind: "section"
citation: "15 U.S.C. § 689d"
title: "15"
title_heading: "Commerce and Trade"
number: "689d"
heading: "Debentures"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/15/689d"
units:
  - "Chapter 14B — Small Business Investment Program"
  - "Subchapter III — Investment Division Programs"
  - "Part B — New Markets Venture Capital Program"
---

# §689d. Debentures

- (a) **In general—** The [Administrator](/usc/15/662.md?p=2) may guarantee the timely payment of [principal](/usc/15/694a.md?p=6) and interest, as scheduled, on debentures issued by any [New Markets Venture Capital company](/usc/15/689.md?p=4).
- (b) **Terms and conditions—** The [Administrator](/usc/15/662.md?p=2) may make guarantees under this section on such terms and conditions as it deems appropriate, except that the term of any debenture guaranteed under this section shall not exceed 15 years.
- (c) **Full faith and credit of the United States—** The full faith and credit of the United States is pledged to pay all amounts that may be required to be paid under any guarantee under this part.
- (d) **Maximum guarantee—**
  - (1) **In general—** Under this section, the [Administrator](/usc/15/662.md?p=2) may guarantee the debentures issued by a [New Markets Venture Capital company](/usc/15/689.md?p=4) only to be[^1] extent that the total face amount of outstanding guaranteed debentures of such [company](/usc/15/662.md?p=3) does not exceed 150 percent of the [private capital](/usc/15/662.md?p=9) of the [company](/usc/15/662.md?p=3), as determined by the [Administrator](/usc/15/662.md?p=2).
  - (2) **Treatment of certain Federal funds—** For the purposes of [paragraph (1)](#d-1), [private capital](/usc/15/662.md?p=9) shall include capital that is considered to be Federal funds, if such capital is contributed by an investor other than an agency or department of the Federal Government.
- (e) **Investment limitations—**
  - (1) **Definition—** In this subsection, the term “covered [New Markets Venture Capital company](/usc/15/689.md?p=4)” means a [New Markets Venture Capital company](/usc/15/689.md?p=4)—
    - (A) granted final approval by the [Administrator](/usc/15/662.md?p=2) under [section 689c(e) of this title](/usc/15/689c.md?p=e) on or after March 1, 2002; and
    - (B) that has obtained a financing from the [Administrator](/usc/15/662.md?p=2).
  - (2) **Limitation—** Except to the extent approved by the [Administrator](/usc/15/662.md?p=2), a covered [New Markets Venture Capital company](/usc/15/689.md?p=4) may not acquire or issue commitments for securities under this subchapter for any single enterprise in an aggregate amount equal to more than 10 percent of the sum of—
    - (A) the regulatory capital of the covered [New Markets Venture Capital company](/usc/15/689.md?p=4); and
    - (B) the total amount of [leverage](/usc/15/662.md?p=10) projected in the [participation agreement](/usc/15/689.md?p=6) of the covered New Markets [Venture Capital](/usc/15/690.md?p=6).

## Footnotes

[^1]: So in original. Probably should be “the”.

## Source credit

(Pub. L. 85–699, title III, § 355, as added Pub. L. 106–554, § 1(a)(8) [§ 1(b)(3)], Dec. 21, 2000, 114 Stat. 2763, 2763A–658; amended Pub. L. 111–240, title I, § 1115, Sept. 27, 2010, 124 Stat. 2508.)

## Notes

### Editorial Notes

### Amendments

2010—Subsec. (e). Pub. L. 111–240 added subsec. (e).