The Corporation, at the discretion of the Corporate Board, may provide to entities described in subsection (b) of this section for projects commercializing new nonfood, nonfeed products using agricultural commodities, financial assistance in the form of—
(1) loans made or insured by the Corporation;
(2) interest subsidy payments made by the Corporation (pursuant to an agreement between the Corporation, the lender, and the borrower) to the lender in amounts determined pursuant to the agreement;
(3) venture capital invested by the Corporation in the form of a convertible debenture; and
(4) repayable grants that are matched by private or local public funds and that are repaid as agreed in a contract between the Corporation and the entity.
To obtain financial assistance for commercialization of nonfood, nonfeed products from the Corporation, an entity shall be a university or other institution of higher education, a nonprofit organization, a cooperative, or a business concern.
To obtain financial assistance from the Corporation under this section, an eligible entity shall file an application with the Executive Director.
An application submitted to the Executive Director under paragraph (1) shall—
(A) describe the proposal of the entity for the commercialization of a new product consistent with this section, including documentation that such proposal is—
(i) scientifically sound;
(ii) technologically feasible; and
(iii) marketable;
(B) provide documentation that adequate private sector funding is not available, but that the applicant has the ability to obtain matching funds from the public or private sectors;
(C) provide documentation that the applicant has invested in the project a significant amount of the applicant's own resources, including time and money;
(D) provide documentation that the product or process has broad application and has the potential to be commercially viable without continual assistance;
(E) provide documentation that the proposal has broad participation by representatives of the public sector, the financial community, the private business community, State and local governments, educational institutions, the farm community, the science and engineering communities;
(F) provide documentation that an established relationship exists between the applicant and other entities to give the applicant access to private business assistance;
(G) provide assurances of legal compliance by the applicant with the terms and conditions of the receipt of assistance under this section; and
(H) provide assurances that the project will result in the creation of new jobs in rural communities.
The Corporate Board shall give priority to—
(1) applications that shall create jobs in economically distressed rural areas;
(2) applications that have State or local government financial participation; and
(3) applications that have private financial participation.
The Corporate Board shall establish additional criteria for use in selecting among equivalent applications. Such criteria shall emphasize—
(1) the quantity and quality of jobs that are likely to be created in rural communities;
(2) the amount of the financial participation by State or local governments or private entities;
(3) the qualifications of the management to be used in the project;
(4) the potential market demand for the potential product to be marketed proportional to the financial assistance requested; and
(5) the likely level of returns to the Fund and the items described in paragraphs (2), (6), (8), and (9) of section 5904(c) of this title.
(Pub. L. 101–624, title XVI, §1661, Nov. 28, 1990, 104 Stat. 3762; Pub. L. 104–127, title VII, §725, Apr. 4, 1996, 110 Stat. 1119.)
1996—Subsec. (a). Pub. L. 104–127, §725(1), (2), substituted “Corporation” for “Center” wherever appearing and substituted “Corporate Board” for “Board” in introductory provisions.
Subsec. (b). Pub. L. 104–127, §725(1), substituted “Corporation” for “Center”.
Subsec. (c). Pub. L. 104–127, §725(3), (4), redesignated subsec. (d) as (c) and struck out former subsec. (c) which provided for appointment of Advisory Council to advise Board and Regional Centers concerning applications for assistance submitted under this section.
Pub. L. 104–127, §725(1), (5), substituted “Corporation” for “Center” in par. (1) and “Executive Director” for “Director” in par. (1) heading and text and introductory provisions of par. (2).
Subsecs. (d) to (f). Pub. L. 104–127, §725(2), (4), redesignated subsecs. (e) and (f) as (d) and (e), respectively, and substituted “Corporate Board” for “Board”.
This section is referred to in sections 5902, 5903, 5906, 5907, 5908, 5909 of this title.