FOREWORD The Small Business Investment Act of 1958 (Public Law 85-699) was signed into law on August 21, 1958, less than 9 years ago. Since that date, the Act has undergone four major revisions-one in each of the four succeeding Congresses. Public Law 86-502, approved June 11, 1960, authorized SBIC's to acquire a wide range of equity securities from small business concerns financed by them and doubled the amounts that banks might invest in the stock of SBIC's. Public Law 87-341, approved October 3, 1961, increased from $150,000 to $400,000 the amount of funds that the Small Business Administration might contribute to the capital of an SBIC. Public Law 88-273, approved February 28, 1964, further increased the matching Government funds provision to $700,000 and eliminated a previous restriction relating to the maximum amount an SBIC might invest in any one small business conern. Public Law 88-273 also added to the statute a direction to the Small Business Administration that it adopt effective regulations dealing with the matter of conflicts of interest. Public Law 89-779, approved November 6, 1966, further amended the statute to give the Small Business Administration broad, new enforcement and supervisory powers including the power to revoke licenses of SBIC's and to remove or suspend directors and officers of licensees. These and all other changes made in the Act are detailed in the following pages, where the Select Committee on Small Business of the United States Senate sets out the full text of the Small Business Investment Act of 1958 as it stands today, together with the related provisions of our tax laws and regulations. These changes in the law afford concrete evidence of the continuing interest of the Congress in the SBIC program and its determination to provide those statutory tools necessary to the realization of the program's mission "to stimulate and supplement the flow of private equity capital and long-term loan funds which small business concerns need for the sound financing of their business. operations and for their growth, expansion and modernization." GEORGE A. SMATHERS, Chairman, Select Committee on Small Business, April 1, 1967. III TEXT OF ACT SMALL BUSINESS INVESTMENT ACT OF 1958 (Public Law 699, 85th Cong., 2d sess., as amended) AN ACT To make equity capital and long-term credit more readily available for smallbusiness concerns, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, TITLE I-SHORT TITLE, STATEMENT OF POLICY, AND DEFINITIONS SHORT TITLE SEC. 101. This Act, divided into titles and sections according to the following table of contents, may be cited as the "Small Business investment Act of 1958 " TABLE OF CONTENTS TITLE I-SHORT TITLE, STATEMENT OF POLICY, AND DEFINITIONS Sec. 101. Short title. Sec. 102. Statement of policy. Sec. 103. Definitions. TITLE II-SMALL BUSINESS INVESTMENT DIVISION OF THE SMALL BUSINESS ADMINISTRATION Sec. 201. Establishment of Small Business Investment Division. Sec. 202. Provision and purposes of funds. [Omitted as no longer current.] TITLE III-SMALL BUSINESS INVESTMENT COMPANIES Sec. 301. Organization of small business investment companies. Sec. 302. Capital stock and subordinated debentures. Sec. 303. Borrowing power. Sec. 304. Provision of equity capital for small-business concerns. Sec. 305. Long-term loans to small-business concerns. Sec. 306. Aggregate limitations. Sec. 307. Exemptions. Sec. 308. Miscellaneous. Sec. 309. Revocation and suspension of licenses; cease and desist orders.1 Sec. 310. Examinations and investigations.2 Sec. 311. Injunctions and other orders.3 Sec. 312. Conflicts of interest.* Sec. 313. Removal or suspension of directors and officers of licensees.5 Sec. 314. Unlawful acts and omissions by officers, directors, employees, or agents; breach of fiduciary duty.5 Sec. 315. Penalties and forfeitures.5 Sec. 316. Jurisdiction and service of process.5 1 Previous sec. 309 repealed by sec. 11(e) of Public Law 87-341 and new sec. 309 added by sec. 9 of Public Law 87-341 Heading amended by sec. 9(a) of Public Law 89-779. Added by sec. 9 of Public Law 87-341. Heading amended by sec. 9(a) of Public Law 89-779. Added by sec. 9 of Public Law 87-341. 4 Added by Public Law 88-273. Section and section title added by secs. 7 and 9(a) of Public Law 89–779. 1 “འི ི་མ་ ཏུ་བཞུས ང་ ང ད ད ་ལོན་ ག |