IS APPROVED. TWO SUCH PROGRAMS WERE INITIATED. A THIRD PROGRAM WAS INSTITUTED WHEREBY SBA SOLD SECTION 303 (B) LOANS FROM ITS PORTFOLIO WITH RECOURSE TO PRIVATE FINANCIAL INSTITUTIONS THROUGH THE MEDIUM OF A PRIVATE BROKERAGE FIRM. WE AGREED THAT THE PROGRAM WAS AUTHORIZED. WE HELD THAT THE SELLING OF THE DEBT INSTRUMENTS DISCUSSED THEREIN THROUGH THE FACILITIES OF A PRIVATE BROKERAGE CONCERN IS A...

SMALL BUSINESS ADMINISTRATION - LOANS - PARTICIPATION - AUTHORITY ALTHOUGH TWO PROPOSED PROGRAMS BY THE SMALL BUSINESS ADMINISTRATION TO SELL TO PRIVATE FINANCIAL INSTITUTIONS LOANS MADE DIRECTLY TO SMALL BUSINESS INVESTMENT COMPANIES AND TO GUARANTEE LOANS MADE ORIGINALLY BY PRIVATE FINANCIAL INSTITUTIONS TO SMALL BUSINESS INVESTMENT COMPANIES ARE NOT SPECIFICALLY AUTHORIZED THEY ARE WITHIN THE B...

ARE "LEASES" AS THAT TERM IS USED IN THE SBA LEASE GUARANTEE AUTHORITY. KLEPPE: THIS IS IN REPLY TO YOUR LETTER OF SEPTEMBER 11. ARE "LEASES" AS THAT TERM IS USED IN YOUR LEASE GUARANTEE AUTHORITY. GUARANTEE THE PAYMENT OF RENTALS UNDER LEASES OF COMMERCIAL AND INDUSTRIAL PROPERTY ENTERED INTO BY SMALL BUSINESS CONCERNS TO ENABLE SUCH CONCERNS TO OBTAIN SUCH LEASES. ***" THE INSTRUMENT ATTACHED TO...

IS AUTHORIZED FOR LOANS HAVING TERMS UP TO 15 YEARS. AS WELL AS THOSE THAT MATURE IN 5 OR 6 YEARS AND WHICH WERE APPROVED IN 44 COMP. ALTHOUGH MARKETING THE LOANS THROUGH PRIVATE BROKERAGE CONCERNS IS WITHIN THE SCOPE OF THE AUTHORITY PROVIDED IN 15 U.S.C. 671 FOR THE ADMINISTRATION OF THE LOAN PROGRAM. IS CHARGEABLE TO THE APPROPRIATION LIMITATIONS PRESCRIBED IN THE 1966 FISCAL YEAR APPROPRIATION...

REQUESTS OUR CONCURRENCE IN YOUR OPINION THAT THE SMALL BUSINESS ADMINISTRATION (SBA) IS AUTHORIZED UNDER SECTION 303 (B) OF THE SMALL BUSINESS INVESTMENT ACT (SBI ACT). PROVIDES THAT: "TO ENCOURAGE THE FORMATION AND GROWTH OF SMALL BUSINESS INVESTMENT COMPANIES THE ADMINISTRATION IS AUTHORIZED * * * TO PURCHASE. THE DEBENTURES OF ANY SUCH COMPANY. * * *" ALTHOUGH THE WORDS "OR DEFERRED (STANDBY)"...

ALTHOUGH LEGISLATIVE HISTORY OF STATUTE AUTHORIZING LICENSING OF LIMITED PARTNERSHIP SBICS IS INCONCLUSIVE. THERE IS NO STATUTORY PROHIBITION ON SBA'S LEGAL AUTHORITY IN THIS REGARD AND SBA DOES HAVE SPECIFIC AUTHORITY UNDER SMALL BUSINESS ACT TO MAKE LOANS TO SBICS ON SUCH TERMS AND CONDITIONS AS IT DEEMS APPROPRIATE. NON-RECOURSE LOANS TO LIMITED PARTNERSHIP SMALL BUSINESS INVESTMENT COMPANIES:...

HAS AUTHORITY TO ASSIGN AND SELL SECURITIES HELD BY IT UNDER THE ACT AND TO GUARANTEE SALES TO PRIVATE FINANCIAL INSTITUTIONS OF DEBENTURES ORIGINALLY PURCHASED BY SBA FROM SMALL BUSINESS INVESTMENT COMPANIES PROVIDED BUDGETED PROGRAM LEVELS ARE NOT EXCEEDED. THESE DEBENTURES WILL THEN BE IMMEDIATELY RESOLD TO PRIVATE INVESTORS BY MEANS OF AN UNDERWRITTEN PUBLIC OFFERING. THE DEBENTURES WILL BE GU...

YOU HAVE DEFINED LENDING INSTITUTIONS TO. TO THE EXTENT THAT DEBT IS CONVERTED TO EQUITY. THAT AUTHORITY FOR SBICS TO BE THE DISBURSING PARTICIPANT UNDER BOTH SECTIONS WILL BE FOUND IN THE SMALL BUSINESS INVESTMENT ACT. OTHER PERTINENT FACTS DISCLOSED BY YOUR LETTER ARE SET FORTH BELOW. THE SUBJECT PROPOSAL WILL CONSTITUTE A REVERSAL OF PAST POLICIES OF YOUR ADMINISTRATION. BECAUSE THE LEGISLATIVE...

SMALL BUSINESS ADMINISTRATION - INVESTMENT COMPANIES - PARTICIPATION IN GUARANTEED LOAN PROGRAMS SMALL BUSINESS INVESTMENT COMPANIES (SBICS) ARE NOT ELIGIBLE TO PARTICIPATE AS GUARANTEED LENDERS IN EITHER SMALL BUSINESS ADMINISTRATION'S (SBA) OR FARMERS HOME ADMINISTRATION'S (FMHA) LOAN PROGRAMS. 1977: THIS DECISION TO THE ADMINISTRATOR OF THE SMALL BUSINESS ADMINISTRATION (SBA) IS IN RESPONSE TO...

WHICH AUTHORIZES THE SMALL BUSINESS ADMINISTRATION TO LEND FUNDS TO SMALL BUSINESS INVESTMENT COMPANIES TO THE EXTENT FUNDS ARE UNAVAILABLE FROM PRIVATE SOURCES. IS NOT INCONSISTENT WITH THE INTENT OF THE SMALL BUSINESS INVESTMENT ACT. THE CONGRESS WITH KNOWLEDGE OF THE STANDBY PROGRAM WHEN SECTION 303 (B) WAS AMENDED HAVING NEITHER DEEMED AN EXPLICIT PROVISION OF LAW REQUIRED TO AUTHORIZE THE PRO...

The Small Business Administration (SBA) requested an interpretation of section 404 of the Small Business Investment Act of 1958. This section of the act authorizes a program under which the SBA guarantees payments by small business concerns due under qualified contracts for pollution control facilities. Solid waste disposal facilities for a trash hauling firm can be included within the program's b...

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YOU STATED THAT IT IS YOUR DESIRE. THE ADMINISTRATION IS AUTHORIZED (BUT ONLY TO THE EXTENT THAT THE NECESSARY FUNDS ARE NOT AVAILABLE TO THE COMPANY INVOLVED FROM PRIVATE SOURCES ON REASONABLE TERMS) TO LEND FUNDS TO SUCH COMPANIES EITHER DIRECTLY OR BY LOANS MADE OR EFFECTED IN COOPERATION WITH BANKS OR OTHER LENDING INSTITUTIONS THROUGH AGREEMENTS TO PARTICIPATE ON AN IMMEDIATE OR DEFERRED (STA...

OR OPERATING A SMALL BUSINESS CONCERN PURSUANT TO SECTION 7(G) OF THE SMALL BUSINESS ACT ARE NOT RESTRICTED TO THE 3 PER CENTUM PER ANNUM INTEREST RATE PRESCRIBED BY SECTION 7(G)(2) OF THE ACT. THEREFORE THE SBA MAY APPROVE AN INTEREST RATE WHICH IS "LEGAL AND REASONABLE" ON THE PARTICIPATION LOANS MADE BY LENDING INSTITUTIONS UNDER SECTION 7(G). EVEN THOUGH THE SBA ON ITS DIRECT OR PARTICIPATION...

1976: THIS DECISION TO THE ADMINISTRATOR OF THE SMALL BUSINESS ADMINISTRATION (SBA IS IN RESPONSE TO HIS REQUEST FOR OUR CONCURRENCE IN SBA'S INTERPRETATION OF THE TERM "VENTURE CAPITAL" AS THAT TERM APPEARS IN SECTION 303(B) OF THE SMALL BUSINESS INVESTMENT ACT. THE QUESTION IS WHETHER WE AGREE THAT THE TWO REQUIREMENTS ARE CONSISTENT. A QUESTION ABOUT THE VALIDITY OF THIS DETERMINATION WAS FIRST...

ALTHOUGH IT IS POSSIBLE. TO CONSTRUE THE TERM AS EXCLUDING FROM GUARANTEE BENEFITS BUSINESSES THAT HAVE NO POLLUTION PROBLEMS OF THEIR OWN. IT IS WITHIN SBA'S STATUTORILY GRANTED DISCRETION TO CHOOSE THAT INTERPRETATION WHICH MOST EFFECTIVELY WILL IMPLEMENT CONGRESSIONAL INTENT AND CARRY OUT THE PURPOSES OF THE PROGRAM. SBA GUARANTEES FOR POLLUTION CONTROL FACILITIES: THIS DECISION IS IN RESPONSE...

GAO provided an opinion on the eligibility of small business investment companies to participate as non-guaranteed lenders in loan programs administered by the Farmers Home Administration...

Interpretation was requested of the term "venture capital" under the Small Business Investment Act. Investments by small business investment companies (SBIC) in small business concerns do not lose their character as venture capital even though the SBIC-lender reserves the right to approve or disapprove future borrowings of the small business concern...

The Administrator of the Small Business Administration (SBA) requested a legal opinion as to the eligibility of small business investment companies (SBIC) to participate as guaranteed lenders in SBA's section 7(a) Guaranteed Loan program and the Farmers Home Administration's Business and Industrial Loan program. In the absence of authorizing legislation, it is impermissible for SBICs to participat...

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...

Clarification was requested concerning the Small Business Administration's (SBA's) authority to issue certificates to the Federal Financing Bank (FFB) evidencing ownership of a group of SBA loans and to sell direct disaster loans to FFB and guarantee payment of principal and interest at a rate which may be in excess of the rate paid to SBA by the borrower. SBA does have authority to issue the cert...

In 1978, Congress amended the Small Business Act to strengthen the assistance programs for minority-owned small businesses. A provision for periodic review of the programs by GAO was included in the amendments to the act. Meetings were held with the Small Business Administration's (SBA) Associate Administrator for Minority Business Development to keep abreast of SBA plans to implement the amendmen...

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