15 U.S.C. § 684 | Equity capital for small-business concerns

(a)

Function of investment companies

It shall be a function of each small business investment company to provide a source of equity capital for incorporated and unincorporated small-business concerns, in such manner and under such terms as the small business investment company may fix in accordance with the regulations of the Administration.

(b)

Conditions

Before any capital is provided to a small-business concern under this section—

(1)

the company may require such concern to refinance any or all of its outstanding indebtedness so that the company is the only holder of any evidence of indebtedness of such concern; and

(2)

except as provided in regulations issued by the Administration, such concern shall agree that it will not thereafter incur any indebtedness without first securing the approval of the company and giving the company the first opportunity to finance such indebtedness.

(c)

Pub. L. 90–104, title II, § 206Oct. 11, 196781 Stat. 271 Repealed. , ,

(d)

Direct or cooperative provision of capital

Equity capital provided to incorporated small business concerns under this section may be provided directly or in cooperation with other investors, incorporated or unincorporated, through agreements to participate on an immediate basis.

Pub. L. 85–699, title III, § 304Aug. 21, 195872 Stat. 693 Pub. L. 86–502, § 6June 11, 196074 Stat. 196 Pub. L. 87–341, § 5Oct. 3, 196175 Stat. 752 Pub. L. 90–104, title II, § 206Oct. 11, 196781 Stat. 271 Pub. L. 92–595, § 2(e)Oct. 27, 197286 Stat. 1316(, , ; , , ; , , ; , , ; , , .)

Editorial Notes

Amendments

Pub. L. 92–5951972—Subsec. (a). extended the function of small business investment companies to provide a source of equity capital to unincorporated business concerns.

Pub. L. 90–1041967—Subsec. (c). repealed subsec. (c) which authorized purchase of stock of investment companies by small-business concerns in an amount equal to 5 per centum of capital provided.

Pub. L. 87–3411961—Subsec. (d). added subsec. (d).

Pub. L. 86–5021960—Subsec. (a). struck out “primary” before “function”, and substituted “a source of equity capital for incorporated small-business concerns, in such manner and under such terms as the small business investment company may fix in accordance with the regulations of the Administration” for “a source of needed equity capital for small-business concerns in the manner and subject to the conditions described in this section”.

Pub. L. 86–502Subsec. (b). redesignated subsec. (c) as (b), and repealed former subsec. (b) which required capital to be secured only through the purchase of debenture bonds.

Pub. L. 86–502Subsecs. (c), (d). redesignated subsec. (d) as (c), and substituted “such concern shall have the right, exercisable in whole or in such part as such concern may elect, to become a stockholder-proprietor by investing in the capital stock of the company 5 per centum” for “such concern shall be required to become a stockholder-proprietor of the company by investing in the capital stock of the company, in an amount equal to not less than 2 percent nor more than 5 percent”. Former subsec. (c) redesignated (b).

Statutory Notes and Related Subsidiaries

Effective Date of 1967 Amendment

Pub. L. 90–104Oct. 11, 1967section 211 of Pub. L. 90–104 section 681 of this titleAmendment by effective 90 days after , see , set out as a note under .