15 U.S. Code § 685 - Long-term loans to small-business concerns
Each company is authorized to make loans, in the manner and subject to the conditions described in this section, to incorporated and unincorporated small-business concerns in order to provide such concerns with funds needed for sound financing, growth, modernization, and expansion.
(b) Direct loans; loans on participation basis
Loans made under this section may be made directly or in cooperation with other lenders, incorporated or unincorporated, through agreements to participate on an immediate or deferred basis.
(c) Maximum rate of interest
The maximum rate of interest for the company’s share of any loan made under this section shall be determined by the Administration: Provided, That the Administration also shall permit those companies which have issued debentures pursuant to this chapter to charge a maximum rate of interest based upon the coupon rate of interest on the outstanding debentures, determined on an annual basis, plus such other expenses of the company as may be approved by the Administration.
(e) Soundness of loan; security
Any loan made under this section shall be of such sound value, or so secured, as reasonably to assure repayment.
(f) Extension or renewal
Any company which has made a loan to a small-business concern under this section is authorized to extend the maturity of or renew such loan for additional periods, not exceeding ten years, if the company finds that such extension or renewal will aid in the orderly liquidation of such loan.
Source(Pub. L. 85–699, title III, § 305,Aug. 21, 1958, 72 Stat. 693; Pub. L. 87–341, § 6,Oct. 3, 1961, 75 Stat. 753; Pub. L. 94–305, title I, § 105,June 4, 1976, 90 Stat. 666; Pub. L. 102–366, title IV, § 411,Sept. 4, 1992, 106 Stat. 1018.)
References in Text
For definition of “this chapter”, referred to in subsec. (c), see References in Text note set out under section 661 of this title.
1992—Subsec. (c). Pub. L. 102–366inserted before period at end “: Provided, That the Administration also shall permit those companies which have issued debentures pursuant to this chapter to charge a maximum rate of interest based upon the coupon rate of interest on the outstanding debentures, determined on an annual basis, plus such other expenses of the company as may be approved by the Administration”.
1976—Subsec. (b). Pub. L. 94–305struck out provision that in agreements to participate in loans on a deferred basis, the participation by the company shall not be in excess of 90 percentum of the balance of the loan outstanding at the time of disbursement.
1961—Subsec. (b). Pub. L. 87–341substituted “other lenders, incorporated or unincorporated” for “other lending institutions”.
Effect of Small Business Equity Enhancement Act of 1992 on Securities Laws