Understanding Qualified Nonprivate Funds: A Comprehensive Legal Overview

Definition & Meaning

Qualified nonprivate funds refer to specific types of financial resources that can be invested in rural business investment companies or applicants. These funds are characterized by two main criteria:

Funds that have been invested by federal agencies (excluding the Department of Agriculture) in accordance with laws that explicitly include these funds as part of "private capital."
Funds invested by state entities that do not exceed thirty-three percent of the total private capital of the investment company or applicant.

Table of content

Legal Use & context

Qualified nonprivate funds are primarily used in the context of rural economic development and investment. They are relevant in areas such as:

Investment law
Federal and state funding programs
Business financing and capital raising

Individuals or businesses seeking to leverage these funds may find it beneficial to utilize legal templates available through US Legal Forms, which can assist in navigating the necessary documentation and procedures.

Key legal elements

Real-world examples

Here are a couple of examples of abatement:

Here are a couple of examples of qualified nonprivate funds:

Example 1: A rural business investment company receives a $500,000 investment from a federal agency, which is classified under qualified nonprivate funds.
Example 2: A state agency invests $200,000 in a rural business investment company, representing 30 percent of the company's total private capital of $666,667. This investment qualifies as a nonprivate fund.

Relevant laws & statutes

The primary legal reference for qualified nonprivate funds is found in the U.S. Code, specifically:

7 USCS § 2009cc - This statute outlines the definitions and regulations surrounding rural business investment companies and the types of funding they can receive.

Comparison with related terms

Term	Definition	Key Differences
Private Capital	Funds raised from private investors.	Qualified nonprivate funds include specific federal and state investments, while private capital does not.
Public Funds	Funds sourced from government entities.	Qualified nonprivate funds are a subset of public funds with specific investment criteria.

Common misunderstandings

What to do if this term applies to you

If you are considering applying for or investing in qualified nonprivate funds, follow these steps:

Review the eligibility criteria outlined in relevant laws.
Consult with a financial advisor or legal professional to ensure compliance.
Explore legal templates available on US Legal Forms to assist with necessary documentation.
If your situation is complex, consider seeking professional legal assistance.

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Quick facts

Attribute	Details
Investment Source	Federal agencies (excluding the Department of Agriculture) and state entities
Investment Limit	State investments must not exceed thirty-three percent of total private capital
Legal Reference	7 USCS § 2009cc