An Act to amend the Small Business Investment Act of 1958, and for other purposes.
PL 86-502 (S.2611), enacted 06/11/1960

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PUBLIC LAW 86-502-JUNE 11, 1960 
[74 ST ATI 
15 u s e 681. 
Public Law 86-502 
June 11,1960 
AN ACT 
^^•^^^^^ 
To amend the Small Business Investment Act of 1958, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
in^fltm^^^Act 
United States of America in Congress assembled. That this Act may 
toeo."'^"'*"* ^ °^ ^^ cited as the "Small Business Investment Act Amendments of I960'. 
SEC. 2. As used in this Act, unless otherwise indicated, references 
to "the Act" are to the Small Business Investment Act of 1958, as 
notl. ^^^ ^^^ ^^ approved August 21,1958 (72 Stat. 689). 
1
5 use 662. 
SY.C. 3. Section 103 of the Act is amended by deleting the paragraph 
numbered (4) and inserting, in lieu thereof, the following: "the term 
'State' includes the several States, the Territories and possessions of 
the United States, the Commonwealth of Puerto Rico, and the District 
of Columbia." 
SEC. 4. Subsection 301(d) of the Act is amended by deleting the 
paragraph thereof numbered (9) ; and by respectively redesignating 
the paragraphs thereof numbered (10) and (11) as (9) and (10). 
15 use 682. 
g^c. 5. Subsection 302(b) of the Act is amended by deleting the first 
word and inserting in lieu thereof the following: "Notwithstanding 
the provisions of section 6(a) (1) of the Bank Holding Company Act 
70 st|t.- lll^ 
of 1956, shares". 
1
5 use 684. • 
SEC. 6. Section 304 of the Act is amended to read as follows: 
"PROVISION OF EQUITY CAPITAL FOR SMALL-BL'SINESS CONCERNS 
"SEC. 304. (a) It shall be a function of each small business invest-
ment company to provide 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. 
"(b) 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 Admin-
istration, 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) Whenever a company provides capital to a small-business 
concern under this section, such concern shall have the right, exer-
cisable in whole or in such part as such concern may elect, to become 
a stockholder-proprietor by investing in the capital stock of the com-
pany 5 per centum of the amount of the capital so provided, in accord-
ance with regulations prescribed by the Administrator." 
SEC. 7. Title 26, chapter 6, section 26-610 of the District of Colum-
37 Stat. 660. 
^|^ Code, 1951 edition, is amended by inserting after the word 
"associations" the following: ", small business investment companies 
licensed and operating under the Small Business Investment Act of 
1958". 
Approved June 11, 1960.