H.R.5687 - Corporation for Small Business Investment Charter Act98th Congress (1983-1984)
|Sponsor:||Rep. Mitchell, Parren J. [D-MD-7] (Introduced 05/21/1984)(by request)|
|Committees:||House - Small Business|
|Latest Action:||House - 05/31/1984 Referred to Subcommittee on SBA & SBIC Authority, Minority Enterprise, and General Small Business Problems. (All Actions)|
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Summary: H.R.5687 — 98th Congress (1983-1984)All Information (Except Text)
Introduced in House (05/21/1984)
Corporation for Small Business Investment Charter Act - Amends the Small Business Investment Act of 1958 to provide that references to small business investment companies operating under the Act shall be deemed to refer to small business investment companies operating under the provisions of this Act.
Includes in the term "small business investment company" any organization which is qualified to conduct business with the Corporation for Small Business Investment. Requires small business investment companies to provide a source of equity capital for incorporated and unincorporated small businesses under such terms as the small business investment company may fix in accordance with the rules of the Corporation. (Currently, such capital is provided by small business investment companies in accordance with the regulations of the Small Business Administration.)
Provides that small business investment companies may provide to small businesses: (1) equity investments and loans on a participation or guaranteed basis; and (2) consulting and advisory services on a fee basis.
Establishes the Corporation for Small Business Investment. Authorizes the Corporation to: (1) make loans to small business investment companies; (2) purchase preferred securities, debentures, and guarantee debentures issued by such companies; and (3) act as issuer of such securities.
Requires the Corporation to establish criteria for the qualification of: (1) small business investment companies to conduct business with such corporation; and (2) small business investment companies whose investments will be made solely in small businesses which will help facilitate the ownership in such businesses by persons who have been hampered by social or economic disadvantages.
Permits the purchase of stock in small business investment companies by national banks.
Authorizes small business investment companies to: (1) purchase stock issued by the Corporation; (2) borrow money; and (3) issue its debenture bonds, promissory notes, or other obligations under conditions as prescribed by the Corporation.
Authorizes and directs the Corporation and the Small Business Administration (SBA) to enter into an agreement in which the Corporation will acquire title to preferred securities and debentures issued by small business investment companies whose policy is to facilitate small business ownership by socially and economically disadvantaged persons, and held by the SBA. Sets forth the conditions under which the Corporation shall hold such securities and debentures.
Directs the Corporation, before the beginning of each fiscal year, to transmit to the President and the Congress its estimate of funds that will be necessary for it to purchase small business investment securities. Requires such funds to be appropriated annually to the Treasury.
Authorizes the Corporation to: (1) enter into agreements regarding the operation of small business investment companies; and (2) issue common and preferred stock. Authorizes the Secretary of the Treasury to purchase obligations issued by the Corporation. Exempts from the securities laws of the United States all stock and obligations issued by the Corporation.
Requires the Corporation to adopt rules on conflicts of interest which may be detrimental to: (1) small businesses; (2) small business investment companies; or (3) the Corporation.
Requires the accounts of the Corporation to be audited annually. Requires a report of each such audit to be: (1) furnished to the Secretary; and (2) made by the Secretary to the President and the Small Business Committees of the Congress not later than six months following the close of each fiscal year.
Requires the Corporation, after the end of each fiscal year, to transmit to the President, the Small Business Committees of the Congress, and the Administrator a report of its operations and activities during each year.
Exempts from State usury laws all business loans made by a small business investment company pursuant to this Act.
Transfers to the Corporation all title to small business investment company securities that are guaranteed by the SBA and held by the Federal Financing Bank.