---
kind: "section"
citation: "7 U.S.C. § 2009cc–3"
title: "7"
title_heading: "Agriculture"
number: "2009cc–3"
heading: "Selection of rural business investment companies"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/2009cc-3"
units:
  - "Chapter 50 — Agricultural Credit"
  - "Subchapter VIII — Rural Business Investment Program"
---

# §2009cc–3. Selection of rural business investment companies

- (a) **Eligibility—** A company shall be eligible to apply to participate, as a [rural business investment company](/usc/7/2009cc.md?p=14), in the program established under this subchapter if—
  - (1) the company is a newly formed for-profit entity or a newly formed for-profit subsidiary of such an entity;
  - (2) the company has a management team with experience in community development financing or relevant venture capital financing; and
  - (3) the company will invest in enterprises that will create wealth and job opportunities in [rural areas](/usc/7/1991.md?p=a-13-A), with an emphasis on [smaller enterprises](/usc/7/2009cc.md?p=15).
- (b) **Application—** To participate, as a [rural business investment company](/usc/7/2009cc.md?p=14), in the program established under this subchapter, a company meeting the eligibility requirements of [subsection (a)](#a) shall submit an application to the [Secretary](/usc/7/499a.md?p=b-2) that includes—
  - (1) a business plan describing how the company intends to make successful [developmental capital](/usc/7/2009cc.md?p=2) investments in identified [rural areas](/usc/7/1991.md?p=a-13-A);
  - (2) information regarding the community development finance or relevant venture capital qualifications and general reputation of the management of the company;
  - (3) a description of how the company intends to work with community-based organizations and local entities (including local economic development companies, local lenders, and local investors) and to seek to address the unmet [equity capital](/usc/7/2009cc.md?p=4) needs of the communities served;
  - (4) a proposal describing how the company intends to use the grant funds provided under this subchapter to provide [operational assistance](/usc/7/2009cc.md?p=9) to [smaller enterprises](/usc/7/2009cc.md?p=15) financed by the company, including information regarding whether the company intends to use licensed professionals, as necessary, on the staff of the company or from an outside entity;
  - (5) with respect to binding commitments to be made to the company under this subchapter, an estimate of the ratio of cash to in-kind contributions;
  - (6) a description of the criteria to be used to evaluate whether and to what extent the company meets the purposes of the program established under this subchapter;
  - (7) information regarding the management and financial strength of any parent firm, affiliated firm, or any other firm essential to the success of the business plan of the company; and
  - (8) such other information as the [Secretary](/usc/7/499a.md?p=b-2) may require.
- (c) **Status—** Not later than 90 days after the initial receipt by the [Secretary](/usc/7/499a.md?p=b-2) of an application under this section, the [Secretary](/usc/7/499a.md?p=b-2) shall provide to the applicant a written report describing the status of the application and any requirements remaining for completion of the application.
- (d) **Matters considered—** In reviewing and processing any application under this section, the [Secretary](/usc/7/499a.md?p=b-2)—
  - (1) shall determine whether—
    - (A) the applicant meets the requirements of [subsection (e)](#e); and
    - (B) the management of the applicant is qualified and has the knowledge, experience, and capability necessary to comply with this subchapter;
  - (2) shall take into consideration—
    - (A) the need for and availability of financing for [rural business concerns](/usc/7/2009cc.md?p=13) in the geographic area in which the applicant is to commence business;
    - (B) the general business reputation of the owners and management of the applicant; and
    - (C) the probability of successful operations of the applicant, including adequate profitability and financial soundness; and
  - (3) shall not take into consideration any projected shortage or unavailability of grant funds or [leverage](/usc/7/2009cc.md?p=5).
- (e) **Approval; license—**
  - (1) **In general—** Except as provided in [paragraph (2)](#e-2), the [Secretary](/usc/7/499a.md?p=b-2) may approve an applicant to operate as a [rural business investment company](/usc/7/2009cc.md?p=14) under this subchapter and [license](/usc/7/2009cc.md?p=6) the applicant as a [rural business investment company](/usc/7/2009cc.md?p=14), if—
    - (A) the [Secretary](/usc/7/499a.md?p=b-2) determines that the application satisfies the requirements of [subsection (b)](#b);
    - (B) the area in which the [rural business investment company](/usc/7/2009cc.md?p=14) is to conduct its operations, and establishment of branch offices or agencies (if authorized by the [articles](/usc/7/2009cc.md?p=1)), are approved by the [Secretary](/usc/7/499a.md?p=b-2); and
    - (C) the applicant enters into a [participation agreement](/usc/7/2009cc.md?p=10) with the [Secretary](/usc/7/499a.md?p=b-2).
  - (2) **Capital requirements—**
    - (A) **In general—** Notwithstanding any other provision of this subchapter, the [Secretary](/usc/7/499a.md?p=b-2) may approve an applicant to operate as a [rural business investment company](/usc/7/2009cc.md?p=14) under this subchapter and designate the applicant as a [rural business investment company](/usc/7/2009cc.md?p=14), if the [Secretary](/usc/7/499a.md?p=b-2) determines that the applicant—
      - (i) has [private capital](/usc/7/2009cc.md?p=11-A) of more than $2,500,000;
      - (ii) would otherwise be approved under this subchapter, except that the applicant does not satisfy the requirements of [section 2009cc–8(c) of this title](/usc/7/2009cc–8.md?p=c); and
      - (iii) has a viable business plan that—
        - (I) reasonably projects profitable operations; and
        - (II) has a reasonable timetable for achieving a level of [private capital](/usc/7/2009cc.md?p=11-A) that satisfies the requirements of [section 2009cc–8(c) of this title](/usc/7/2009cc–8.md?p=c).
    - (B) **Leverage—** An applicant approved under [subparagraph (A)](#e-2-A) shall not be eligible to receive [leverage](/usc/7/2009cc.md?p=5) under this subchapter until the applicant satisfies the requirements of [section 2009cc–8(c) of this title](/usc/7/2009cc–8.md?p=c).
    - (C) **Grants—** An applicant approved under [subparagraph (A)](#e-2-A) shall be eligible for grants under [section 2009cc–7 of this title](/usc/7/2009cc–7.md) in proportion to the [private capital](/usc/7/2009cc.md?p=11-A) of the applicant, as determined by the [Secretary](/usc/7/499a.md?p=b-2).

## Source credit

(Pub. L. 87–128, title III, § 384D, as added Pub. L. 107–171, title VI, § 6029, May 13, 2002, 116 Stat. 391; amended Pub. L. 115–334, title VI, § 6426(c), Dec. 20, 2018, 132 Stat. 4770.)

## Notes

### Editorial Notes

### Amendments

2018—Subsec. (b)(1). Pub. L. 115–334 substituted “developmental” for “developmental venture”.