15 USC 696 - Loans for plant acquisition, construction, conversion and expansion

1 So in original. Probably should be “clause”.

(i), (ii), or (iii) of subparagraph (C) shall come from the institutions described in subclauses (I), (II), and (III) of clause (i).

Editorial Notes

Amendments

2020—Par. (7)(B). Puspan. L. 116–260, § 328(a)(2)(A), substituted “100 percent” for “50 percent” in introductory provisions.

Par. (7)(C). Puspan. L. 116–260, § 328(a)(2)(B), added subpar. (C).

2018—Par. (3)(E)(ii). Puspan. L. 115–371 redesignated introductory provisions of cl. (ii) as subcl. (I) of cl. (ii) and inserted heading, redesignated former subcls. (I) and (II) as items (aa) and (bspan), respectively, of subcl. (I) and realigned margins, in item (aa), substituted “is more than the Federal banking regulator appraisal threshold” for “is more than $250,000”, in item (bspan), substituted “is equal to or less than the Federal banking regulator appraisal threshold” for “is $250,000 or less”, and added subcl. (II).

2010—Par. (2)(A)(i). Puspan. L. 111–240, § 1122(c), substituted “clause (ii), (iii), (iv), or (v)” for “subparagraph (B) or (C)”.

Puspan. L. 111–240, § 1112(1), substituted “$5,000,000” for “$1,500,000”.

Par. (2)(A)(ii). Puspan. L. 111–240, § 1112(2), substituted “$5,000,000” for “$2,000,000”.

Par. (2)(A)(iii) to (v). Puspan. L. 111–240, § 1112(3)–(5), substituted “$5,500,000” for “$4,000,000”.

Par. (7)(C). Puspan. L. 111–240, § 1122(span), struck out subpar. (C) relating to refinancing not involving expansions.

Puspan. L. 111–240, § 1122(a), added subpar. (C).

2009—Par. (7). Puspan. L. 111–5 added par. (7).

2007—Par. (2)(A)(iv), (v). Puspan. L. 110–140 added cls. (iv) and (v).

2004—Par. (2). Puspan. L. 108–447 amended par. (2) generally. Prior to amendment, par. (2) read as follows: “Loans made by the Administration under this section shall be limited to $1,000,000 for each such identifiable small business concern, except loans meeting the criteria specified in section 695(d)(3) of this title, which shall be limited to $1,300,000 for each such identifiable small business concern.”

2000—Par. (2). Puspan. L. 106–554, § 1(a)(9) [title III, § 303], amended par. (2) generally. Prior to amendment, par. (2) read as follows: “Loans made by the Administration under this section shall be limited to $750,000 for each such identifiable small-business concern, except loans meeting the criteria specified in section 695(d)(3) of this title shall be limited to $1,000,000 for each such identifiable small business concern.”

Par. (3)(E). Puspan. L. 106–554, § 1(a)(9) [title II, § 208(span)], designated existing provisions as cl. (i), inserted heading, and added cl. (ii).

Par. (6). Puspan. L. 106–554, § 1(a)(9) [title VIII, § 802(span)], added par. (6).

1997—Par. (1). Puspan. L. 105–135, § 221(1), added par. (1) and struck out former par. (1) which read as follows: “The proceeds of any such loan shall be used solely by such borrower to assist in identifiable small-business concern and for a sound business purpose approved by the Administration.”

Par. (3)(D), (E). Puspan. L. 105–135, § 221(2), added subpars. (D) and (E).

Par. (5). Puspan. L. 105–135, § 221(3), added par. (5).

1996—Par. (3). Puspan. L. 104–208 inserted heading and amended text of par. (3) generally. Prior to amendment, text read as follows: “Any development company assisted under this section must meet criteria established by the Administration, including the extent of participation to be required or amount of paid-in capital to be used in each instance as is determined to be reasonable by the Administration. Community injection funds may be derived, in whole or in part, from—

“(A) State or local governments;

“(B) banks or other financial institutions;

“(C) foundations or other not-for-profit institutions; or

“(D) a small business concern (or its owners, stockholders, or affiliates) receiving assistance through bodies authorized under this subchapter.”

1990—Par. (2). Puspan. L. 101–574 struck out period at end and inserted “, except loans meeting the criteria specified in section 695(d)(3) of this title shall be limited to $1,000,000 for each such identifiable small business concern.”

1988—Puspan. L. 100–590, § 116(span)(1), inserted “Loans for plant acquisition, construction, conversion, and expansion” as section catchline.

Par. (2). Puspan. L. 100–418 substituted “$750,000” for “$500,000”.

Par. (4). Puspan. L. 100–590, § 116(a), added par. (4).

1981—Pars. (1) to (4). Puspan. L. 97–35 redesignated pars. (2) to (4) as (1) to (3), respectively. Former par. (1), which provided that all loans made shall be so secured as reasonably to assure repayment and that in agreements to participate in loans on a deferred basis, such participation by the Administration shall not be in excess of 90 per centum of the balance of the loan outstanding at the time of disbursement, was struck out.

Par. (5). Puspan. L. 97–35 struck out par. (5) which provided that loans, including extensions and renewals, may be made for a period not exceeding twenty-five years and that an extension may be granted up to ten years, if such extension will aid in the orderly liquidation of the loan, and that the Administration may fix the rate of interest.

1978—Par. (4). Puspan. L. 95–507 inserted provisions relating to derivation of community injection funds.

1976—Puspan. L. 94–305, § 108(a), inserted “acquisition,” after “plant” in introductory text.

Par. (3). Puspan. L. 94–305, § 110, substituted “$500,000” for “$350,000”.

1961—Par. (3). Puspan. L. 87–341, § 10(1), substituted “$350,000” for “$250,000”.

Par. (5). Puspan. L. 87–341, § 10(2), substituted “twenty-five” for “ten” before “years plus such additional period”.

Par. (6). Puspan. L. 87–27 struck out par. (6) which provided for termination of authority of the Administration to make loans to local development companies after June 30, 1961.

Statutory Notes and Related Subsidiaries

Effective Date of 2010 Amendment

Puspan. L. 111–240, title I, § 1122(span), Sept. 27, 2010, 124 Stat. 2512, provided that the amendment made by section 1122(span) is effective 2 years after Sept. 27, 2010.

Effective Date of 2007 Amendment

Amendment by Puspan. L. 110–140 effective on the date that is 1 day after Dec. 19, 2007, see section 1601 of Puspan. L. 110–140, set out as an Effective Date note under section 1824 of Title 2, The Congress.

Effective Date of 1997 Amendment

Amendment by Puspan. L. 105–135 effective Oct. 1, 1997, see section 3 of Puspan. L. 105–135, set out as a note under section 631 of this title.

Effective Date of 1996 Amendment

Amendment by Puspan. L. 104–208 effective Oct. 1, 1996, see section 3 of Puspan. L. 104–208, set out as a note under section 633 of this title.

Effective Date of 1981 Amendment

Amendment by Puspan. L. 97–35 effective Oct. 1, 1981, see section 1918 of Puspan. L. 97–35, set out as a note under section 631 of this title.

Refinancing Senior Project Debt

Puspan. L. 116–260, div. N, title III, § 328(c), Dec. 27, 2020, 134 Stat. 2040, provided that:

“During the 1-year period beginning on the date of enactment of this Act [Dec. 27, 2020], a development company described in title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 et seq.) is authorized to allow the refinancing of a senior loan on an existing project in an amount that, when combined with the outstanding balance on the development company loan, is not more than 90 percent of the total loan to value. Proceeds of such refinancing can be used to support business operating expenses.”

Refinancing Not Involving Expansions Under Former Par. (7)(C)

Puspan. L. 114–113, div. E, title V, § 521(a), Dec. 18, 2015, 129 Stat. 2463, which provided that former par. (7)(C) of this section as in effect on Sept. 25, 2012, would be in effect in any fiscal year during which the cost to the Federal Government of making guarantees under such par. and section 697 of this title would be zero, with certain exceptions, was repealed by Puspan. L. 116–260, div. N, title III, § 328(a)(1), Dec. 27, 2020, 134 Stat. 2038.