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42 USC § 9806 - Establishment and scope of programs

---
identifier: "/us/usc/t42/s9806"
source: "usc"
legal_status: "official_prima_facie"
title: "42 USC § 9806 - Establishment and scope of programs"
title_number: 42
title_name: "THE PUBLIC HEALTH AND WELFARE"
section_number: "9806"
section_name: "Establishment and scope of programs"
chapter_number: 105
chapter_name: "COMMUNITY SERVICES PROGRAMS"
subchapter_number: "I"
subchapter_name: "COMMUNITY ECONOMIC DEVELOPMENT"
part_number: "A"
part_name: "Urban and Rural Special Impact Programs"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Pub. L. 97–35, title VI, § 617, Aug. 13, 1981, 95 Stat. 491; Pub. L. 105–277, div. A, § 101(f) [title VIII, § 405(d)(40), (f)(31)], Oct. 21, 1998, 112 Stat. 2681–337, 2681–427, 2681–434.)"
---

# § 9806. Establishment and scope of programs

**(a)** The Secretary is authorized to provide financial assistance in the form of grants to nonprofit and for profit community development corporations and other affiliated and supportive agencies and organizations associated with qualifying community development corporations for the payment of all or part of the cost of programs which are designed to carry out the purposes of this part. Financial assistance shall be provided so that each community economic development program is of sufficient size, scope, and duration to have an appreciable impact on the area served. Such programs may include—

**(1)** community business and commercial development programs, including (A) programs which provide financial and other assistance (including equity capital) to start, expand, or locate businesses in or near the area served so as to provide employment and ownership opportunities for residents of such areas; and (B) programs for small businesses located in or owned by residents of such areas;

**(2)** community physical development programs, including industrial parks and housing activities, which contribute to an improved environment and which create new training, employment and ownership opportunities for residents of such area;

**1** training and public service employment programs and related services for unemployed or low-income persons which support and complement community development programs financed under this part, including, without limitation, activities such as the activities described in title I of the Workforce Investment Act of 1998; [^1] and

See References in Text note below.

**(4)** social service programs which support and complement community business and commercial development programs financed under this part, including child care, educational services, health services, credit counseling, energy conservation, recreation services, and programs for the maintenance of housing facilities.

**(b)** The Secretary shall conduct programs assisted under this part so as to contribute, on an equitable basis between urban and rural areas, to the elimination of poverty and the establishment of permanent economic and social benefits in such areas.

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**Source Credit**: (Pub. L. 97–35, title VI, § 617, Aug. 13, 1981, 95 Stat. 491; Pub. L. 105–277, div. A, § 101(f) [title VIII, § 405(d)(40), (f)(31)], Oct. 21, 1998, 112 Stat. 2681–337, 2681–427, 2681–434.)

## Editorial Notes

### References in Text

The Workforce Investment Act of 1998, referred to in subsec. (a)(3), is , , , and was repealed by , §§ 506, 511(a), , , 1705, effective . Title I of the Act was classified principally to former chapter 30 (former § 2801 et seq.) of Title 29, Labor. Pursuant to , references to a provision of the Workforce Investment Act of 1998 are deemed to refer to the corresponding provision of the Workforce Innovation and Opportunity Act, , , , effective . For complete classification of the Workforce Investment Act of 1998 to the Code, see Tables. For complete classification of the Workforce Innovation and Opportunity Act to the Code, see Short Title note set out under  and Tables.

### Amendments

1998—Subsec. (a)(3). , struck out “the Job Training Partnership Act or” after “activities described in”.

, substituted “activities such as the activities described in the Job Training Partnership Act or title I of the Workforce Investment Act of 1998” for “activities such as those described in the Comprehensive Employment and Training Act”.

## Statutory Notes and Related Subsidiaries

### Effective Date of 1998 Amendment

Amendment by section 101(f) [title VIII, § 405(d)(40)] of  effective , and amendment by section 101(f) [title VIII, § 405(f)(31)] of  effective , see section 101(f) [title VIII, § 405(g)(1), (2)(B)] of , set out as a note under , Government Organization and Employees.