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UNIVERSITY OF CAL,
SUBCOMMITTEE OF THE
A BILL TO AMEND THE SMALL BUSINESS INVESTMENT ACT
OF 1958, AND FOR OTHER PURPOSES
JULY 31 AND AUGUST 2, 1961
Printed for the use of the Committee on Banking and Currency
COMMITTEE ON BANKING AND CURRENCY
A. WILLIS ROBERTSON, Virginia, Chairman JOHN SPARKMAN, Alabama
HOMER E. CAPEHART, Indiana PAUL H. DOUGLAS, Illinois
WALLACE F. BENNETT, Utah JOSEPH S. CLARK, Pennsylvania
PRESCOTT BUSH, Connecticut WILLIAM PROXMIRE, Wisconsin
J. GLENN BEALL, Maryland
JOHN G. TOWER, Texas
MATTHEW HALE, Chief of Staff
SUBCOMMITTEE ON SMALL BUSINESS
WILLIAM PROXMIRE, Wisconsin, Chairman A. WILLIS ROBERTSON, Virginia
J. GLENN BEALL, Maryland JOHN SPARKMAN, Alabama
WALLACE F. BENNETT, Utah PAUL H. DOUGLAS, Illinois
JACOB K. JAVITS, New York EDWARD V. LONG, Missouri
JOHN G. TOWER, Texas MAURINE B. NEUBERGER, Oregon
Horne, John E., Administrator; accompanied by Keith Hanna, Assist-
ant Administrator (Controller); Jerome S. Plåpinger, Deputy Gen-
companied by Charles T. O'Neill, Jr., assistant to general counsel,
American Bankers Association
Suggested revision, section 10(a), H.R. 6672.
Suggested revision, section 10(c), H.R. 6672
president: Telegram to Senator Proxmire.
Letter on bank amendment.
SMALL BUSINESS INVESTMENT ACT 1961
MONDAY, JULY 31, 1961
Washington, D.C. The subcommittee met, pursuant to call, in room 5302, New Senate Office Building, at 11:05 a.m., Senator William Proxmire (chairman of the subcommittee)
presiding, Present: Senators Proxmire, Sparkman, Bennett, and Tower. Senator PROXMIRE. The subcommittee will come to order.
The Small Business Subcommittee today begins hearings on S. 902, a bill to amend the Small Business Investment Act of 1958. This bill was introduced by Senator Sparkman for himself and Senators Long of Louisiana, Humphrey, Morse, Bible, Randolph, Engle, Bartlett, Williams of New Jersey, Moss, Saltonstall, Javits, Cooper, and Smathers.
Our witness today will be Mr. John E. Horne, Administrator of the Small Business Administration.
On Wednesday morning, August 2, we will hear testimony from private witnesses, and on Wednesday afternoon we will hear testimony from Mr. William L. Cary, Chairman of the Securities and Exchange Commission.
This committee has followed with interest the progress of the small business investment program. That program has a very important role to play in providing needed equity and long-term credit to small businesses.
The program is developing slowly but in the past few months the increase in the number of small business investment companies being formed has been improved, though it still falls far short of what we hoped for and expected.
The major purpose of this bill is to provide the legal framework that will enable this program to move ahead more rapidly.
When this committee last heard testimony regarding this program in June and July 1959, relatively few companies had been formed, and the ones that had been formed had been in operation only a short time. Consequently, we could not then get a clear picture of the effectiveness of the program or the practical adaptability of the act.
Now we hope we will be able to get a clearer picture of the operations of these companies and weigh the relative strengths and weaknesses of the program and the act.
This bill represents amendments to the act which were suggested in a unanimous report of the Senate Select Committee on Small Business dated April 27, 1960, more than a year ago. The committee also has received letters from private organizations suggesting other amendments.
Without objection, I will insert in the record at this time a copy of the bill S. 902, also a draft bill sent us by the administration, and comments of the interested agencies.