TITLE 7 - AGRICULTURE

SUBTITLE B - REGULATIONS OF THE DEPARTMENT OF AGRICULTURE

CHAPTER XLII - RURAL BUSINESS - COOPERATIVE SERVICE AND RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE

SUBCHAPTER I - ADMINISTRATIVE REGULATIONS

PART 4290 - RURAL BUSINESS INVESTMENT COMPANY (''RBIC'') PROGRAM

subpart e - EVALUATION AND SELECTION OF RBICS

4290.390 - Licensing as a RBIC.

  (a) Eligibility criteria for licensing as a RBIC. Each selected Applicant must meet the following conditions before it is eligible to be licensed as a RBIC: (1) Raise, within a time period specified by the Secretary but not to exceed 12 months after selection under 4290.380 the specific amount of Regulatory Capital that the Applicant had projected in its application that it would raise (see 4290.210 for additional information); (2) Raise $500,000 in Leverageable Capital as required by 4290.210; (3) Complete and submit to the Secretary all legal and other documentation concerning the RBIC, including but not limited to its Articles and updated financial information concerning the RBIC in order to qualify for a Leverage commitment; and (4) Enter into a Participation Agreement with the Secretary.

  (b) Licensing as a RBIC. If the selected Applicant has satisfactorily met all the conditions specified in paragraph (a) of this section, as determined within the sole discretion of the Secretary, then the Secretary on behalf of USDA and the Administrator on behalf of SBA will license the Applicant as a RBIC.

  (c) Failure to meet eligibility criteria for licensing. Each selected Applicant that does not meet the eligibility criteria for licensing described in paragraph (a) of this section, within a time period specified by the Secretary, will not be licensed as a RBIC. Failure to meet any of those conditions, including but not limited to failure to raise the projected Regulatory Capital within the required time period, will cause the Applicant's selection to lapse. The Secretary will not restore the selection of such an Applicant after the expiration of that time period. After the expiration of that time period, an Applicant that is not licensed as a RBIC must cease to represent itself as a participant or potential participant in the RBIC program.

  (d) Effect of a RBIC license. The Participation Agreement executed by the Secretary with each Applicant licensed as a RBIC will include the following: (1) Approval to operate as a RBIC under the Act; (2) A commitment of Leverage; and (3) An Operational Assistance grant award.