NMVC Program

The New Markets Venture Capital (NMVC) Program, operated by the Small Business Administration, was designed to provide $100 million in capital ($150 million of debenture guarantees allocated on a discounted basis) and $30 million in operational assistance grants to 10 to 20 new New Markets Venture Capital Companies. Six NMVC Companies were given final approval in the first round of the program. Click here for details.

The SBA expected to run a second round of the program for an additional designation of NMVC companies in the first quarter of 2003 until funding for the program was eliminated in the FY2003 Omnibus Appropriations Bill. Click here to read more about the funding cut. CDVCA has since been working to ensure the program continues to function effectively for existing NMVC companies and to renew funding for future rounds of designations.

REAUTHORIZATION
On September 27, the House passed the Small Business Investment Expansion Act of 2007 which reauthorizes and amends the NMVC program. The Committee’s bill includes the three provisions that CDVCA desired: aligning the NMVC program’s definition of low income communities with NMTC; ensuring that NMVC companies will have two full years to raise private capital; and eliminating the OA match requirement in favor of an OA formula that mirrors the formula in place for RBICs (10% of the capital raised, or $1 million, whichever is less).

The Senate Small Business Committee unanimously voted in favor of the Small Business Venture Capital Act as introduced by Senators John Kerry (D-MA) and Olympia Snow (R-ME). In December 2007, the committee tried to call up the bill to the Senate floor to be approved by Unanimous Consent (UC). However, Senator Coburn (R-OK) objected based on opposition to the SBIC participating securities program, a provision not in the pending legislation.

Please use the following links for more information. If after reviewing this information you have any questions or comments regarding these programs, you may contact us at cdvca@cdvca.org.

Frequently Asked Questions Program Overview NMVC Legislation SBA Website New Markets Programs Summary Chart