ity would be useful to ascertain whether sufficient evidence exists í proceed against an SBIC pursuant to the provisions of propose sections 309 and 311. Proposed section 311(a) would retain for the SBA the authorit presently embodied in section 308(e) of the act, to seek injuncti relief against persons engaged, or about to engage, in violation The courts should have the power at the instance of the SBA ↑ enjoin a threatened violation of the act or regulations. Under son circumstances, where action under proposed section 309 does n promise to be effective or feasible, this authority may be essential prevent injury to the program or to persons whose interests are affecte by a violation. Subsection (b) of proposed section 311 provides that in any pr ceeding brought by SBA to obtain an injunction against an SBIC, t court may, as it deems necessary, take exclusive jurisdiction of th SBIC and its assets, and appoint a trustee or receiver to hold administer such assets under the direction of the court. This a thority, comparable to that embodied in the Investment Compar Act of 1940 and other laws administered by the Securities and E change Commission, should be available to prevent an offendi SBIC from dissipating its assets pending the final disposition of i cases. The assets of an SBIC may be highly liquid and particular susceptible to manipulation or other forms of misuse by t unscrupulous. LOANS TO STATE AND LOCAL DEVELOPMENT COMPANIES Section 502 of the Small Business Investment Act of 1958 authoriz the SBA to make loans to State and local development compani to assist identifiable small business concerns. The loan progra authorized by section 502 will be of material assistance not only strengthen numerous small business concerns but, equally importan to strengthen the economy of the communities in which they a located. Also it is expected that loans to local development cor panies for the described purposes will play a significant role in t efforts of the Federal Government to rehabilitate the depressed are of the country. In order to enhance further the usefulness of the program authorize by section 502, H.R. 8870 provides that the existing loan limitation $250,000 for each identifiable small business concern be increased $350,000, and that the maximum term for such loans be increased fro 10 to 25 years. The first change conforms the dollar limitation of this lendin authority to the ceiling prescribed under SBA's present authority make business loans under section 7(a) of the Small Business Act. The other change authorizes the agency to make loans for a ter commensurate with the depreciation period for the facilities finance by such loans, and also more closely approximates commercial lendi practices with respect to the maturity (a minimum of 20 years) loans for the construction of such facilities. The following tables indicate the local development companies States to which section 502 loans have been granted by SBA as July 31, 1961: Local development companies by States to which Sec. 502 toans have been granted by the Small Business Administration as of July 31, 1961 Bedford. Casey Industries, Inc., Casey. Airflex Corp... Indiana: Bedford Industrial Development Foundation, Extruded Alloys, Inc.. 253, 793 203, 793 Dover Mills, Inc. $20, 379 183, 414 105 Children's clothing.. 208, 500 166, 500 166, 500 100 Quilted garments.. 86, 010 68, 808 6, 881 61, 927 50 United Wood Heel Co. 160,000 160,000 Wood heels.. 85,000 68,000 17,000 51,000 150 Local development companies by States to which Sec. 502 loans have been granted by the Small Business Administration as of July 31, 1961-Con. Barnesville Development Corp., Barnesville. Greater Moorhead Development Corp., Moorhead Winona Industrial Development Association, Inc., Kennedy Developers, Inc., Kennedy. Annandale Development, Inc., Annandale. 70 Renville Community Development, Renville. |