§ 686. Aggregate limitations on amount of assistance to any single enterprise

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1958

   Pub. L. 85–699 title III § 306 · 72 Stat. 689

   Enacted · 15 U.S.C. § 686

   Pub. L. 85–699, title III, § 306, Aug. 21, 1958, 72 Stat. 694

   Source evidence

   Code source credit
   Pub. L. 85–699, title III, § 306, Aug. 21, 1958, 72 Stat. 694

   Enacted provision · exact public law section
   Sec. 306. aggregate limitations Without the approval of the Administration, the aggregate amount of obligations and securities acquired and for which commitments may be issued by any small business investment company under the provisions of this Act for any single enterprise shall not exceed 20 percent of the combined capital and surplus of such small business investment company authorized by this Act.

2. 1961

   Small Business Investment Act Amendments of 1961

   Pub. L. 87–341 § 7(a) · 75 Stat. 752

   Inserted · 15 U.S.C. § 686

   Pub. L. 87–341 inserted “or (2) $500,000, whichever is the lesser”

   Source evidence

   Code amendment note
   Pub. L. 87–341 inserted “or (2) $500,000, whichever is the lesser”.

   Enacted provision · exact public law section
   (a) Section 306 of the Small Business Investment Act of Limitation. 15 USC 686. 1958 is amended by striking out the matter following “exceed” and inserting in lieu thereof the following: “(1) 20 per centum of the combined capital and surplus of such small business investment company authorized by this Act, or (2) $500,000, whichever is the lesser.”

3. 1964

   Small Business Investment Act Amendments of 1963

   Pub. L. 88–273 § 4 · 78 Stat. 146

   Struck · 15 U.S.C. § 686

   Pub. L. 88–273 struck out the $500,000 limitation on amount of assistance to any single enterprise

   Source evidence

   Code amendment note
   Pub. L. 88–273 struck out the $500,000 limitation on amount of assistance to any single enterprise.

   Enacted provision · exact public law section
   Sec. 4. Section 306 of the Small Business Investment Act of 1958 is amended to read as follows: “Sec. 306. “aggregate limitations Without the approval of the Administration, the aggregate amount of obligations and securities acquired and for which commitments may be issued by any small business investment company under the provisions of this Act for any single enterprise shall not exceed 20 per centum of the combined capital and surplus of such small business investment company authorized by this Act.”

4. 1967

   Pub. L. 90–104 title II § 207 · 81 Stat. 268

   Substituted · 15 U.S.C. § 686(a)

   Pub. L. 90–104 substituted “paid-in capital and paid-in surplus of such company” for “capital and surplus of such small business investment company authorized by this chapter”

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 90–104 substituted “paid-in capital and paid-in surplus of such company” for “capital and surplus of such small business investment company authorized by this chapter”.

   Enacted provision · exact public law section
   Sec. 207. Section 306 of the Small Business Investment Act of 1958 is amended to read as follows: 74 Stat. 196. 15 USC 684. Obligations and commitments, limitations. 78 Stat. 146. 15 USC 686. “Sec. 306. (a) Without the approval of the Administration, the aggregate amount of obligations and securities acquired and for which commitments may be issued by any small business investment company under the provisions of this Act for any single enterprise shall not exceed 20 percent of the combined paid-in capital and paid-in surplus of such company. “(b) For the purpose of this section, the combined paid-in capital and paid-in surplus of any company licensed prior to January 1, 1968, shall consist of (1) the paid-in capital and paid-in surplus of such company and (2) the following portions of the funds outstanding from the Administration through the issuance of subordinated debentures as of the effective date of the Small Business Investment Act Amendments of 1967, or on January 1 of each of the following calendar years, Post, p. 272. whichever is less: (A) 100 percent, during 1968; (B) 75 percent, during 1969; (C) 50 percent, during 1970; (D) 25 percent, during 1971; and (E) zero, during 1972 and thereafter. “(c) With respect to obligations or securities acquired prior to the effective date of the Small Business Investment Act Amendments of 1967, and with respect to legally binding commitments issued prior to such date, the provisions of this section as in effect immediately prior to such effective date shall continue to apply.”

   Effective date note
   Amendment by Pub. L. 90–104 effective Jan. 1, 1968, see section 211 of Pub. L. 90–104, set out as a note under section 681 of this title.

5. 1967

   Pub. L. 90–104 title II § 207 · 81 Stat. 268

   Added · 15 U.S.C. § 686(b); 15 U.S.C. § 686(c)

   Pub. L. 90–104 added subsecs. (b) and (c)

   Source evidence

   Code amendment note
   Subsecs. (b), (c). Pub. L. 90–104 added subsecs. (b) and (c).

   Enacted provision · exact public law section
   Sec. 207. Section 306 of the Small Business Investment Act of 1958 is amended to read as follows: 74 Stat. 196. 15 USC 684. Obligations and commitments, limitations. 78 Stat. 146. 15 USC 686. “Sec. 306. (a) Without the approval of the Administration, the aggregate amount of obligations and securities acquired and for which commitments may be issued by any small business investment company under the provisions of this Act for any single enterprise shall not exceed 20 percent of the combined paid-in capital and paid-in surplus of such company. “(b) For the purpose of this section, the combined paid-in capital and paid-in surplus of any company licensed prior to January 1, 1968, shall consist of (1) the paid-in capital and paid-in surplus of such company and (2) the following portions of the funds outstanding from the Administration through the issuance of subordinated debentures as of the effective date of the Small Business Investment Act Amendments of 1967, or on January 1 of each of the following calendar years, Post, p. 272. whichever is less: (A) 100 percent, during 1968; (B) 75 percent, during 1969; (C) 50 percent, during 1970; (D) 25 percent, during 1971; and (E) zero, during 1972 and thereafter. “(c) With respect to obligations or securities acquired prior to the effective date of the Small Business Investment Act Amendments of 1967, and with respect to legally binding commitments issued prior to such date, the provisions of this section as in effect immediately prior to such effective date shall continue to apply.”

   Effective date note
   Amendment by Pub. L. 90–104 effective Jan. 1, 1968, see section 211 of Pub. L. 90–104, set out as a note under section 681 of this title.

6. 1972

   Small Business Investment Act Amendments of 1972

   Pub. L. 92–595 § 2(f)(1) · 86 Stat. 1314

   Substituted · 15 U.S.C. § 686(a)

   Pub. L. 92–595, § 2(f)(1), substituted “combined private paid-in capital” for “combined paid-in capital”

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 92–595, § 2(f)(1), substituted “combined private paid-in capital” for “combined paid-in capital”.

   Enacted provision · exact public law section
   (f) Section 306 is amended (1) by inserting the word “private” in subsection (a) thereof to read “combined private paid-in capital and paid-in surplus” and (2) by repealing subsection (b) thereof.

7. 1972

   Small Business Investment Act Amendments of 1972

   Pub. L. 92–595 § 2(f)(2) · 86 Stat. 1314

   Repealed · 15 U.S.C. § 686(b)

   Pub. L. 92–595, § 2(f)(2), repealed subsec. (b) which enumerated the items making up the combined paid-in capital and paid-in surplus of companies licensed prior to January 1, 1968

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 92–595, § 2(f)(2), repealed subsec. (b) which enumerated the items making up the combined paid-in capital and paid-in surplus of companies licensed prior to January 1, 1968.

   Enacted provision · exact public law section
   (f) Section 306 is amended (1) by inserting the word “private” in subsection (a) thereof to read “combined private paid-in capital and paid-in surplus” and (2) by repealing subsection (b) thereof.

8. 1992

   Small Business Equity Enhancement Act of 1992

   Pub. L. 102–366 title IV § 408(a) · 106 Stat. 986

   Amended · 15 U.S.C. § 686(a)

   Pub. L. 102–366 amended subsec. (a) generally. Prior to amendment, subsec. (a) read as follows: “Without the approval of the Administration, the aggregate amount of obligations and securities acquired and for which commitments may be issued by any small business investment company under the provisions of this chapter for any single enterprise shall not exceed 20 percent of the combined private paid-in capital and paid-in surplus of such company.”

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 102–366 amended subsec. (a) generally. Prior to amendment, subsec. (a) read as follows: “Without the approval of the Administration, the aggregate amount of obligations and securities acquired and for which commitments may be issued by any small business investment company under the provisions of this chapter for any single enterprise shall not exceed 20 percent of the combined private paid-in capital and paid-in surplus of such company.”

   Enacted provision · exact public law section
   (a) Investment Limitation.— Section 306(a) of the Small Business Investment Act of 1958 (15 U.S.C. 686(a)) is amended to read as follows: “(a) If any small business investment company has obtained financing from the Administration and such financing remains outstanding, the aggregate amount of obligations and securities acquired and for which commitments may be issued by such company under the provisions of this title for any single enterprise shall not exceed 20 per centum of the private capital of such company, without the approval of the Administration.”.

9. 2009

   American Recovery and Reinvestment Act of 2009

   Pub. L. 111–5 div. A title V § 505(b) · 123 Stat. 115

   Amended · 15 U.S.C. § 686(a)

   Pub. L. 111–5 amended subsec. (a) generally. Prior to amendment, text read as follows: “If any small business investment company has obtained financing from the Administration and such financing remains outstanding, the aggregate amount of obligations and securities acquired and for which commitments may be issued by such company under the provisions of this subchapter for any single enterprise shall not exceed 20 per centum of the private capital of such company, without the approval of the Administration.”

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 111–5 amended subsec. (a) generally. Prior to amendment, text read as follows: “If any small business investment company has obtained financing from the Administration and such financing remains outstanding, the aggregate amount of obligations and securities acquired and for which commitments may be issued by such company under the provisions of this subchapter for any single enterprise shall not exceed 20 per centum of the private capital of such company, without the approval of the Administration.”

   Enacted provision · exact public law section
   (b) Simplified Aggregate Investment Limitations.— Section 306(a) of the Small Business Investment Act of 1958 (15 U.S.C. 686(a)) is amended to read as follows: “(a) Percentage Limitation on Private Capital.— If any small business investment company has obtained financing from the Administrator and such financing remains outstanding, the aggregate amount of securities acquired and for which commitments may be issued by such company under the provisions of this title for any single enterprise shall not, without the approval of the Administrator, exceed 10 percent of the sum of— “(1) the private capital of such company; and “(2) the total amount of leverage projected by the company in the company’s business plan that was approved by the Administrator at the time of the grant of the company’s license.” .

9 of 9 references resolved to an enrolled provision