§ 696. Loans for plant acquisition, construction, conversion and expansion
The Administration may, in addition to its authority under section 695 of this title, make loans for plant acquisition, construction, conversion or expansion, including the acquisition of land, to State and local development companies, and such loans may be made or effected either directly or in cooperation with banks or other lending institutions through agreements to participate on an immediate or deferred basis: Provided, however, That the foregoing powers shall be subject to the following restrictions and limitations:
- (1) The proceeds of any such loan shall be used solely by such borrower to
assist in identifiable small-business concern and for a sound business purpose approved by the Administration.
- (2) Loans made by the Administration under this section shall be limited to
$750,000 for each such identifiable small-business concern, except loans meeting the criteria specified in section 695(d)(3) of this title shall be limited to $1,000,000 for each such identifiable small business concern.
- (3) Any development company assisted under this section must meet criteria
established by the Administration, including the extent of participation to be required or amount of paid-in capital to be used in each instance as is determined to be reasonable by the Administration. Community injection funds may be derived, in whole or in part, from -
- (A) State or local governments;
- (B) banks or other financial institutions;
- (C) foundations or other not-for-profit institutions; or
- (D) a small business concern (or its owners, stockholders, or affiliates)
receiving assistance through bodies authorized under this subchapter.
- (4) If the project is to construct a new facility, up to 33 per centum of the
total project may be leased, if reasonable projections of growth demonstrate that the assisted small business concern will need additional space within three years and will fully utilize such additional space within ten years.