104 STAT. 3992 PUBLIC LAW 101-624—NOV. 28, 1990 the Federal Deposit Insurance Act (12 U.S.C. 1813(b))), or any State owned bank whose deposits are backed by the full faith and credit of the State, and the funds, except as provided in subsection (b) of this section, shall be held in cash and receive interest or be invested in direct obligations of the United States or in obligations guaranteed by the United States or an agency thereof. (b) USE OF FUND. —Amounts in a local revolving fund may be used— (1) to provide loans or equity capital, or loan guarantees, to approved local businesses as authorized in this chapter, under procedures established by the Board; (2) to cover the costs of providing training, business or financial planning, or management or technical assistance to approved local businesses in amounts that do not exceed amounts or levels described in standards established by the Board; (3) if financial investments are made in the eligible entity, in accordance with item (aa) or (bb) of section 2313(c)(3)(A)(iiXI), to provide for a return of capital to non-Federal investors in the revolving fund, except that if such revolving fund experiences capital or other losses the share of returned capital under this paragraph shall be proportionately, or otherwise appropriately reduced to reflect such losses, under procedures established by the Board; or (4) to cover reasonable operating or capital expenses, losses, or for other charges as prescribed in rules or standards established by the Board. (c) DECISIONS CONCERNING FUNDING.— Eli g ible entities that receive a line of credit under section 2313 shall make case-by-case determinations concerning applications submitted by each local business for loans, equity capital, or loan guarantees, under general procedures and requirements established by the Board. (d) REQUIREMENT OF PARTNERSHIPS FOR LOANS OR INVESTMENTS. — Funds in each local revolving fund shall be loaned, invested, or used to provide a guarantee, only if one or more depository institutions (as defined in section 3(c)(l) of the Federal Deposit Insurance Act (12 U.S.C. 1813(c)(l)) or community development credit unions described in section 2312(a) of this Act, under procedures established by the Board, match each investment or loan made by each such revolving fund to each such local business, on at least a doUar-for-doUar basis, or provide the funds for the loans that are guaranteed by such local revolving fund. (e) INVESTMENT SIZE LIMITS.— (1) IN GENERAL. — (A) AMOUNT PER LOCAL BUSINESS.— The amount of Federal funds provided from any revolving fund for use in making loans or investments, or available regarding each guarantee, shall not exceed $250,000 in any given calendar year, to any single approved local business or to other local businesses that are financigilly connected or otherwise related to such local business as defined by the Board. (B) OTHER SOURCES.— This chapter shall not be construed to limit the total amount of loans, investments, or guarantees that each local business may receive from sources other than eligible entities.
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