A participation agreement is a formal contract between the Secretary of Agriculture and a rural business investment company. This agreement mandates that the investment company make investments in smaller enterprises located in rural areas. The goal is to promote economic growth and development in these regions.
Participation agreements are primarily used in the context of rural economic development. They are relevant in areas such as business law and investment regulations. These agreements facilitate funding and investment in rural businesses, helping to stimulate local economies. Users may find templates for participation agreements on platforms like US Legal Forms, which can assist them in drafting these documents correctly.
Here are a couple of examples of abatement:
Example 1: A rural business investment company enters into a participation agreement to invest in a local organic farm. This investment helps the farm expand its operations and create jobs in the community.
Example 2: A participation agreement is established to support a technology startup in a rural area, providing necessary funding to develop innovative solutions for local businesses. (hypothetical example)
The primary statute governing participation agreements is found in the U.S. Code, specifically 7 USCS § 2009cc-3(e). This statute outlines the framework for rural business investment companies and their obligations under participation agreements.
If you are involved in a rural business investment or are considering entering into a participation agreement, it is essential to understand the terms and obligations outlined in the agreement. You can explore US Legal Forms for templates that can help you draft or review your participation agreement. If your situation is complex, consider seeking professional legal advice to ensure compliance with all regulations.
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| Attribute | Details |
|---|---|
| Parties Involved | Secretary of Agriculture, rural business investment company |
| Investment Focus | Smaller enterprises in rural areas |
| Legal Reference | 7 USCS § 2009cc-3(e) |
The purpose is to ensure that rural business investment companies invest in smaller enterprises to promote economic growth in rural areas.