Małe firmy · 09/02/1999

Small Business Investment Companies

In order to encourage small business investment companies (SBICs) to invest in inner cities and rural areas and in businesses that serve such areas, the Small Business Administration (SBA) is proposing to introduce a new SBIC investment category called low and moderate income investments (LMI Investments). For each SBIC financing that qualifies as an LMI Investment, SBA proposes to modify its regulations on control of the small business, ``cost of money'' of the financing, and term of the financing. SBA is also proposing to make available a patient form of debenture leverage that could be issued only by SBICs that make LMI Investments. These incentives would apply only to LMI Investments made after the effective date of a final rule.