15 U.S. Code § 684 - Equity capital for small-business concerns
(a) Function of investment companies
It shall be a function of each small business investment company to provide a source of equity capital for incorporated and unincorporated small-business concerns, in such manner and under such terms as the small business investment company may fix in accordance with the regulations of the Administration.
Before any capital is provided to a small-business concern under this section—
(1) the company may require such concern to refinance any or all of its outstanding indebtedness so that the company is the only holder of any evidence of indebtedness of such concern; and
Source(Pub. L. 85–699, title III, § 304,Aug. 21, 1958, 72 Stat. 693; Pub. L. 86–502, § 6,June 11, 1960, 74 Stat. 196; Pub. L. 87–341, § 5,Oct. 3, 1961, 75 Stat. 752; Pub. L. 90–104, title II, § 206,Oct. 11, 1967, 81 Stat. 271; Pub. L. 92–595, § 2(e),Oct. 27, 1972, 86 Stat. 1316.)
1972—Subsec. (a). Pub. L. 92–595extended the function of small business investment companies to provide a source of equity capital to unincorporated business concerns.
1967—Subsec. (c). Pub. L. 90–104repealed subsec. (c) which authorized purchase of stock of investment companies by small-business concerns in an amount equal to 5 per centum of capital provided.
1961—Subsec. (d). Pub. L. 87–341added subsec. (d).
1960—Subsec. (a). Pub. L. 86–502struck out “primary” before “function”, and substituted “a source of equity capital for incorporated small-business concerns, in such manner and under such terms as the small business investment company may fix in accordance with the regulations of the Administration” for “a source of needed equity capital for small-business concerns in the manner and subject to the conditions described in this section”.
Subsec. (b). Pub. L. 86–502redesignated subsec. (c) as (b), and repealed former subsec. (b) which required capital to be secured only through the purchase of debenture bonds.
Subsecs. (c), (d). Pub. L. 86–502redesignated subsec. (d) as (c), and substituted “such concern shall have the right, exercisable in whole or in such part as such concern may elect, to become a stockholder-proprietor by investing in the capital stock of the company 5 per centum” for “such concern shall be required to become a stockholder-proprietor of the company by investing in the capital stock of the company, in an amount equal to not less than 2 percent nor more than 5 percent”. Former subsec. (c) redesignated (b).
Effective Date of 1967 Amendment