Development Companies and Business Loans; Passive Business

Özet

This proposed rule would allow certain passive businesses to be eligible for SBA financial assistance under both the SBA's development company and 7(a) business loan programs if the real estate (or personal property) it holds would be used by an eligible small business concern in which any owner of at least 20 percent of the passive business owns at least 20 percent of the small business concern. The proposed rule would eliminate many requirements and restrictions which presently limit the use of real estate holding entities in SBA's business loan and development company programs.