15 U.S.C. § 684

Equity capital for small-business concerns

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(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) ConditionsBefore 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securing the approval of the company and giving the company the first opportunity to finance such indebtedness.(c) Repealed.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, § 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, § 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.)Editorial NotesAmendments

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 L. 90–104 repealed subsec.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).

Statutory Notes and Related SubsidiariesEffective 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.

Notes of Decisions

Cited in 9 cases, 1965–1995 · leading case: United States v. Fid. Capital Corp., a Georgia Corp., Commonwealth Mortg. Corp. of Am., Intervenor-Appellee, 920 F.2d 827 (11th Cir. 1991).

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United States v. Fid. Capital Corp., a Georgia Corp., Commonwealth Mortg. Corp. of Am., Intervenor-Appellee, 920 F.2d 827 (11th Cir. 1991). “15 U.S.C. §§ 684 (a), 685(a); 13 C.F.R. §§ 107.”

Inner City Broad. Corp. v. James C. Sanders, Adm'r, U.S. Small Bus. Admin., Fed. R.R. Admin., 733 F.2d 154 (D.C. Cir. 1984). “15 U.S.C. § 684 (1982). Although licensed and regulated by the SBA, the SBICs are privately-owned, privately-managed credit institutions.”

Sw. Marine, Inc. v. United States, 926 F. Supp. 142 (N.D. Cal. 1995). “1993) (contractor could bring equitable lien action against the Small Business Administration under the “sue and be sued” *146 provision of the Small Business Act, 15 U.S.C. § 684 (b)(1)). Thus, under the reasoning of Concrete Tie and Wright , a contractor is apparently free to…”

H. & G. Indus., Inc. & Subsidiaries v. Comm'r of Internal Revenue, 495 F.2d 653 (3rd Cir. 1974). “196 (1960), 15 U.S.C. § 684 . 3 . In the four fiscal years during which the stock was outstanding, the taxpayer paid $16,000, $18,307, $24,717, and $19,025, respectively.”

Raitport v. Chase Manhattan Capital Corp., 388 F. Supp. 1095 (S.D.N.Y. 1975). “15 U.S.C. § 684 (a). As set forth in the regulations, the principal limitations are that the funds may only be invested in small business concerns and only when there is evidence that the desired credit is not otherwise available on reasonable terms, 13 C.”

United States v. Coleman Capital Corp., 295 F. Supp. 1016 (N.D. Ill. 1969). “15 U.S.C. §§ 684 , 685 and 686; 1958 U.S.”

Anderson v. Charleston Capital Corp. (In Re D.A. Kennerly), 90 B.R. 781 (Bankr. D.S.C. 1987). “In applying that definition to Southeastern Fairfax and Southeastern Bishopville, it should be noted that, as a Small Business Investment Company, one of Charleston Capital Corporation’s functions is “to provide a source of equity capital for incorporated and unincorporated…”

Ana Small Bus. Investments, Inc. v. Small Bus. Admin. of the United States of Am., 391 F.2d 739 (9th Cir. 1968). · cites it 2× “693 (1958), as amended, 15 U.S.C. § 684 (a) (1964), and SBA’s regulation, 13 CFR § 107.”

Small Bus. Admin. v. Barron, 240 F. Supp. 434 (W.D.S.C. 1965). “Sections 304 and 305 of the Act ( 15 U.S.C. §§ 684 , 685) permit small business investment companies to finance small business concerns only for the above stated purposes.”

Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.