Page:United States Statutes at Large Volume 75.djvu/792

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[75 Stat. 752]
[75 Stat. 752]
PUBLIC LAW 87-000—MMMM. DD, 1961

752

PUBLIC LAW 87-341-OCT. 3, 1961

Public Law 87-341 October 3, 1961 [S. 902]

Small B u s i n e s s Investment Act Amendments of 1961. 72 Stat. 690. IS u s e 662.

Definitions.

15 USC 681. Debentures. 15 USC 682.

Borrowing power. 15 USC 683.

74 Stat. 196. 15 USC 684. Equity capital.

[75

ST AT.

'

AN ACT To amend the Small Business Investment Act of 1958, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Small Business Investment Act Amendments of 1961. SEC. 2. Section 103 of the Small Business Investment Act of 1958 is amended— (1) by striking out paragraph (3) and inserting in lieu thereof the following: "(3) the terms 'small business investment company', 'company', and 'licensee' mean a company approved by the Administration to operate under the provisions of this Act and issued a license as provided in section 301(c);"; and (2) by striking out "and" at the end of paragraph (5), by striking out the period at the end of paragraph (6) and inserting in lieu thereof "; and", and by adding after paragraph (6) the following new paragraph: " (7) the term 'license'^means a license issued by the Administration as provided in section 301(c)." SEC. 3. (a) Section 302(a) of the Small Business Investment Act of 1958 is amended by striking out the second sentence and inserting in lieu thereof the following: "In order to facilitate the formation and growth of small business investment companies, the Administration is hereby authorized, notwithstanding any other provisions of law (but only to the extent that the necessary funds are not available to the company involved from private sources on reasonable terms), to purchase the debentures of any such company in an amount not to exceed the lesser of $400,000 or the amount of the paid-in capital and surplus of the company from other sources; but debentures of a small business investment company may be purchased by the Administration under this subsection only during such period (m no case ending more than three years after the date of the issuance of its license under section 301(c) or the date of the enactment of the Small Business Investment Act Amendments of 1961, whichever is later) as may be fixed by the Administration." (b) Section 302(b) of such Act is amended by striking out "1 percent of its capital and surplus" and inserting in lieu thereof "2 percent of its capital and surplus". SEC. 4. (a) The first sentence of section 303(b) of the Small Business Investment Act of 1958 is amended by inserting after "is authorized" the following: "(but only to the extent that the necessary funds are not available to the company involved from private sources on reasonable terms)". (b) Tho, second sentence of section 303(b) of such Act is amended to read as follows: "The total amount of obligations of any one company which may be purchased and outstanding at any one time by the Administration under this subsection (including commitments to purchase such obligations) shall not exceed 50 percent of the paid-in capital and surplus of such compan^/^ or $4,000,000, whichever is less." (c) Section 303 (bj of such Act is further amended by adding at the end thereof the lollowing new sentence: "All loans made by the Administration under this subsection shall be of such sound va,lue as reasonably to assure repayment." SEC. 5. Section 304 of the Small Business Investment Act of 1958 is amended by adding at the end thereof the following new subsection: " (d) Equity capital provided to incorporated small business concerns under this section may be provided directly or in cooperation