Non-Recourse Loans to Limited Partnership Small Business Investment Companies

The former Acting Administrator of the Small Business Administration (SBA) requested concurrence in the opinion that SBA has the authority to make nonrecourse loans to small business investment companies established as limited partnerships. There is no statutory prohibition on SBA legal authority to make such loans, and SBA has specific authority under the Small Business Act to make loans to small business investment companies on such terms and conditions as it deems appropriate.