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

# §689g. Operational assistance grants

- (a) **In general—**
  - (1) **Authority—** In accordance with this section, the [Administrator](/usc/15/662.md?p=2) may make grants to [New Markets Venture Capital companies](/usc/15/689.md?p=4) and to other entities, as authorized by this part, to provide [operational assistance](/usc/15/689.md?p=5) to [smaller enterprises](/usc/15/662.md?p=12) financed, or expected to be financed, by such [companies](/usc/15/662.md?p=3) or other entities.
  - (2) **Terms—** Grants made under this subsection shall be made over a multiyear period not to exceed 10 years, under such other terms as the [Administrator](/usc/15/662.md?p=2) may require.
  - (3) **Grants to specialized small business investment companies—**
    - (A) **Authority—** In accordance with this section, the [Administrator](/usc/15/662.md?p=2) may make grants to [specialized small business investment companies](/usc/15/689.md?p=7) to provide [operational assistance](/usc/15/689.md?p=5) to [smaller enterprises](/usc/15/662.md?p=12) financed, or expected to be financed, by such [companies](/usc/15/662.md?p=3) after the effective date of the New Markets [Venture Capital](/usc/15/690.md?p=6) Program Act of 2000.
    - (B) **Use of funds—** The proceeds of a grant made under this paragraph may be used by the [company](/usc/15/662.md?p=3) receiving such grant only to provide [operational assistance](/usc/15/689.md?p=5) in connection with an equity investment (made with capital raised after the effective date of the New Markets [Venture Capital](/usc/15/690.md?p=6) Program Act of 2000) in a business located in a [low-income geographic area](/usc/15/689.md?p=3).
    - (C) **Submission of plans—** A [specialized small business investment company](/usc/15/689.md?p=7) shall be eligible for a grant under this section only if the [company](/usc/15/662.md?p=3) submits to the [Administrator](/usc/15/662.md?p=2), in such form and manner as the [Administrator](/usc/15/662.md?p=2) may require, a plan for use of the grant.
  - (4) **Grant amount—**
    - (A) **New Markets Venture Capital companies—** The amount of a grant made under this subsection to a [New Markets Venture Capital company](/usc/15/689.md?p=4) shall be equal to the resources (in cash or in kind) raised by the [company](/usc/15/662.md?p=3) under [section 689c(d)(2) of this title](/usc/15/689c.md?p=d-2).
    - (B) **Other entities—** The amount of a grant made under this subsection to any entity other than a [New Markets Venture Capital company](/usc/15/689.md?p=4) shall be equal to the resources (in cash or in kind) raised by the entity in accordance with the requirements applicable to New Market [Venture Capital](/usc/15/690.md?p=6) [companies](/usc/15/662.md?p=3) set forth in [section 689c(d)(2) of this title](/usc/15/689c.md?p=d-2).
  - (5) **Pro rata reductions—** If the amount made available to carry out this section is insufficient for the [Administrator](/usc/15/662.md?p=2) to provide grants in the amounts provided for in [paragraph (4)](#a-4), the [Administrator](/usc/15/662.md?p=2) shall make pro rata reductions in the amounts otherwise payable to each [company](/usc/15/662.md?p=3) and entity under such paragraph.
- (b) **Supplemental grants—**
  - (1) **In general—** The [Administrator](/usc/15/662.md?p=2) may make supplemental grants to [New Markets Venture Capital companies](/usc/15/689.md?p=4) and to other entities, as authorized by this part under such terms as the [Administrator](/usc/15/662.md?p=2) may require, to provide additional [operational assistance](/usc/15/689.md?p=5) to [smaller enterprises](/usc/15/662.md?p=12) financed, or expected to be financed, by the [companies](/usc/15/662.md?p=3).
  - (2) **Matching requirement—** The [Administrator](/usc/15/662.md?p=2) may require, as a condition of any supplemental grant made under this subsection, that the [company](/usc/15/662.md?p=3) or entity receiving the grant provide from resources (in a[^1] cash or in kind), other then[^2] those provided by the [Administrator](/usc/15/662.md?p=2), a matching contribution equal to the amount of the supplemental grant.
- (c) **Limitation—** None of the assistance made available under this section may be used for any overhead or general and administrative expense of a [New Markets Venture Capital company](/usc/15/689.md?p=4) or a [specialized small business investment company](/usc/15/689.md?p=7).

## Footnotes

[^1]: So in original. The article probably should not appear.
[^2]: So in original. Probably should be “than”.

## Source credit

(Pub. L. 85–699, title III, § 358, as added Pub. L. 106–554, § 1(a)(8) [§ 1(b)(3)], Dec. 21, 2000, 114 Stat. 2763, 2763A–660.)

## Notes

### Editorial Notes

### References in Text

The effective date of the New Markets Venture Capital Program Act of 2000, referred to in subsec. (a)(3)(A), (B), probably means the date of enactment of section 1 of H.R. 5663, as enacted by Pub. L. 106–554, § 1(a)(8), which was approved Dec. 21, 2000.