A rural business investment company is a type of organization that has received formal approval from the Secretary of Agriculture under specific regulations. These companies are established to support and invest in rural businesses, helping to foster economic growth in rural areas. To qualify, a company must have a participation agreement with the Secretary, which outlines the terms of their collaboration.
Rural business investment companies are primarily used in the context of agricultural and economic development law. They play a crucial role in facilitating investments in rural areas, which can include funding for small businesses, agricultural projects, and community development initiatives. Legal practitioners may encounter this term when dealing with investment agreements or funding applications for rural projects. Users can manage related forms and procedures through resources like US Legal Forms, which provide templates drafted by legal professionals.
Here are a couple of examples of abatement:
Example 1: A rural business investment company may provide funding to a local farm to expand its operations, which in turn creates jobs and stimulates the local economy.
Example 2: A company might partner with the Secretary of Agriculture to develop a new agricultural technology that benefits small farmers in a rural area (hypothetical example).
The primary statute governing rural business investment companies is found in the U.S. Code, specifically under 7 USCS § 2009cc, which outlines the requirements for approval and operation of these companies.
| Term | Definition | Key Differences |
|---|---|---|
| Rural Business Investment Company | A company approved to invest in rural businesses. | Focuses specifically on rural areas and requires government approval. |
| Small Business Investment Company (SBIC) | A company that provides financing to small businesses. | Not limited to rural areas and does not require participation agreements with the Secretary. |
If you are interested in establishing or working with a rural business investment company, consider the following steps:
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It is a company that has received approval from the Secretary of Agriculture to invest in rural businesses.