usc:us:15:685

text: U.S.C. Title 15 - COMMERCE AND TRADE 15 U.S.C. United States Code, 2024 Edition 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 From the U.S. Government Publishing Office, www.gpo.gov §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, §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.) Editorial Notes 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". Statutory Notes and Related Subsidiaries 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.