
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 15USC684]

 
                      TITLE 15--COMMERCE AND TRADE
 
             CHAPTER 14B--SMALL BUSINESS INVESTMENT PROGRAM
 
              SUBCHAPTER III--INVESTMENT DIVISION PROGRAMS
 
               Part A--Small Business Investment Companies
 
Sec. 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.

(b) Conditions

    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
        (2) except as provided in regulations issued by the 
    Administration, such concern shall agree that it will not thereafter 
    incur any indebtedness without first securing the approval of the 
    company and giving the company the first opportunity to finance such 
    indebtedness.

(c) Repealed. Pub. L. 90-104, title II, Sec. 206, Oct. 11, 1967, 81 
        Stat. 271

(d) Direct or cooperative provision of capital

    Equity capital provided to incorporated small business concerns 
under this section may be provided directly or in cooperation with other 
investors, incorporated or unincorporated, through agreements to 
participate on an immediate basis.

(Pub. L. 85-699, title III, Sec. 304, Aug. 21, 1958, 72 Stat. 693; Pub. 
L. 86-502, Sec. 6, June 11, 1960, 74 Stat. 196; Pub. L. 87-341, Sec. 5, 
Oct. 3, 1961, 75 Stat. 752; Pub. L. 90-104, title II, Sec. 206, Oct. 11, 
1967, 81 Stat. 271; Pub. L. 92-595, Sec. 2(e), Oct. 27, 1972, 86 Stat. 
1316.)


                               Amendments

    1972--Subsec. (a). Pub. L. 92-595 extended the function of small 
business investment companies to provide a source of equity capital to 
unincorporated business concerns.
    1967--Subsec. (c). Pub. L. 90-104 repealed subsec.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. 87-341 added subsec. (d).
    1960--Subsec. (a). Pub. L. 86-502 struck 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. 86-502 redesignated 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. 86-502 redesignated 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

    Amendment by Pub. L. 90-104 effective 90 days after Oct. 11, 1967, 
see section 211 of Pub. L. 90-104, set out as a note under section 681 
of this title.

                  Section Referred to in Other Sections

    This section is referred to in title 26 section 1243.
