
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: 15USC685]

 
                      TITLE 15--COMMERCE AND TRADE
 
             CHAPTER 14B--SMALL BUSINESS INVESTMENT PROGRAM
 
              SUBCHAPTER III--INVESTMENT DIVISION PROGRAMS
 
               Part A--Small Business Investment Companies
 
Sec. 685. Long-term loans to small-business concerns


(a) Authorization

    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.

(d) Maturity

    Any loan made under this section shall have a maturity not exceeding 
twenty years.

(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.

(Pub. L. 85-699, title III, Sec. 305, Aug. 21, 1958, 72 Stat. 693; Pub. 
L. 87-341, Sec. 6, Oct. 3, 1961, 75 Stat. 753; Pub. L. 94-305, title I, 
Sec. 105, June 4, 1976, 90 Stat. 666; Pub. L. 102-366, title IV, 
Sec. 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.


                               Amendments

    1992--Subsec. (c). Pub. L. 102-366 inserted 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. 94-305 struck 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. 87-341 substituted ``other lenders, 
incorporated or unincorporated'' for ``other lending institutions''.


 Effect of Small Business Equity Enhancement Act of 1992 on Securities 
                                  Laws

    Nothing in amendment by Pub. L. 102-366 to be construed to affect 
applicability of securities laws or to otherwise supersede or limit 
jurisdiction of Securities and Exchange Commission, see section 418 of 
Pub. L. 102-366, set out as a note under section 661 of this title.
