New Markets Venture Capital (59.051)

Program

59.051 New Markets Venture Capital

Federal Agency

Agency: Small Business Administration

Authorization

Small Business Investment Act of 1958, III U.S.C 351-368.

Program Number

59.051

Last Known Status

Active

Objectives

To promote economic development and the creation of wealth and job opportunities in low-income geographic areas and among individuals living in such areas, through developmental venture capital investments in smaller enterprises located in such areas.

Types of Assistance

GUARANTEED/INSURED LOANS; PROJECT GRANTS

Uses and Use Restrictions

Recipients are SBA approved New Markets Venture Capital Companies (NMVCCs) that use funds from debentures guaranteed by SBA to make equity capital investments in smaller enterprises located in low-income geographic areas. Recipients use OA grant funds to provide management and technical assistance to smaller enterprises in which they intend or make such investments. Recipients must not use grant funds for their own general and administrative expenses. Term of guaranteed debenture is up to 10 years, with no payments required in years 1 to 5, interest only payments due semi- annually in years 6 to 10, and a balloon repayment of principal due at maturity. Cost is approximately 100 basis points over comparable U.S. Treasury Securities. Prepayment is allowed without penalty after year 1.

Eligibility Requirements

Applicant Eligibility

No new funding will be requested for this program.

Beneficiary Eligibility

Not applicable.

Credentials/Documentation

No Credentials or documentation are required. This program is excluded from coverage under OMB Circular No. A-87.

Application and Award Process

Preapplication Coordination

Preapplication coordination is not applicable. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372.

Application Procedure

This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under OMB Circular No. A-110. Not applicable.

Award Procedure

Not applicable.

Deadlines

Contact the headquarters or regional office, as appropriate, for application deadlines.

Range of Approval/Disapproval Time

Additional details available on SBA's website at sba.gov.

Appeals

Additional information available on SBA's website at www.sba.gov.

Renewals

Additional information available on SBA's website at www.sba.gov.

Assistance Considerations

Formula and Matching Requirements

Statutory formulas are not applicable to this program.
Matching requirements are not applicable to this program.
MOE requirements are not applicable to this program.

Length and Time Phasing of Assistance

Additional information available on SBA's website at www.sba.gov. See the following for information on how assistance is awarded/released: Additional information available on SBA's website at www.sba.gov.

Post Assistance Requirements

Reports

Additional information available on SBA's website at www.sba.gov. Additional information available on SBA's website at www.sba.gov. Additional information available on SBA's website at www.sba.gov. Additional information available on SBA's website at www.sba.gov. Additional information available on SBA's website at www.sba.gov.

Audits

In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133. SBA will require an annual financial report performed by an independent public accountant and an annual examination performed by SBA's internal examiners.

Records

Appropriate records as needed for requirements of 111 and 112.

Program Accomplishments

Not Applicable.

Financial Information

Account Identification

73-0100-0-1-376; 73-1154-0-1-376.

Obligations

(Salaries) FY 08 $281,000; FY 09 est $293,000; FY 10 est $324,000

Range and Average of Financial Assistance

Additional information available on SBA's website at sba.gov.

Regulations, Guidelines and Literature

13 CFR Part 108.

Related Programs

Not Applicable.

Information Contacts

Regional or Local Office

See Regional Agency Offices.

Headquarters Office

SBA Executive Secretariat 409 3rd. Street, SW, Washington, District of Columbia 20416 Email: SBAExecSec@sba.gov Phone: 1-800-827-5722

Web Site Address

http://www.sba.gov/INV/NMVC

Examples of Funded Projects

Not Applicable.

Criteria for Selecting Proposals

Equity venture capital finance experience, community development finance experience, Federal grant administration experience and technical assistance experience.