Rural communities in the United States face multiple and varied barriers to sustainable growth. A common obstacle for virtually all such communities is that they are unable to attract sufficient equity capital and technical assistance for starting and expanding businesses. In December 2000, to address the unmet equity needs of low-income and rural communities, Congress passed and President Clinton signed into law legislation creating the New Markets Venture Capital (NMVC) Program. Congress also appropriated FY2001 funding of $150 million for debenture guarantees and $30 million for operational assistance grants to supplement the private capital that is raised by NMVC companies. The U.S. Small Business Administration (SBA) administers the program.

New Markets Venture Capital companies are for-profit investment funds with private management. Their objective is to promote economic development and the creation of wealth and job opportunities in low-income geographic areas and among individuals living in such areas. NMVC companies pursue this objective by making equity-type investments in smaller enterprises located in defined geographic areas.