United States · Bill · S
S. 1784 (104th)
Small Business Investment Company Improvement Act of 1996
Introduced
20 May 1996
Last action
26 July 1996 · Floor
Status
Referred to the House Committee on Small Business.
Sponsors
Sen. Bond, Christopher S. [R-MO]
Subjects
Discovery layer
Source updated
7 April 2025
Summary
Small Business Investment Company Improvement Act of 1996 - Amends the Small Business Investment Act of 1958 to revise and add definitions. (Sec. 3) Includes as a small business investment company (SBIC) a limited liability company organized and operated in accordance with a State statute approved by the Small Business Administration (SBA). Requires each SBIC license applicant to apply to the SBA Administrator. Requires the Administrator to provide a status report to such applicant within 90 days and to act on such application within a reasonable time. Specifies matters to be considered. Provides application approval procedures for certain applicants with private capital of not less than $3 million. Repeals a provision authorizing the organization and chartering of SBICs formed to provide financing to socially or economically disadvantaged persons. (Sec. 4) Increases the private capital requirement of SBICs to: (1) $5 million; or (2) $10 million, for applicants seeking authority to issue participating securities to be purchased or guaranteed by the SBA (with an exception in special circumstances and for good cause). Requires the Administrator to determine the adequacy of the private capital of each licensee. Authorizes the Administrator to exempt from the private capital requirements licensees: (1) with private capital of not less than $2.5 million; (2) that certify that at least 50 percent of such financings will be provided to smaller enterprises; and (3) that have a record of profitable operations and that have not committed any serious or continuing violations of Federal or State law. Authorizes the Administrator to reduce the private capital requirement in special circumstances and for good cause. Directs the Administrator to ensure that the management of each SBIC licensee is sufficiently diversified from and unaffiliated with licensee ownership. (Sec. 5) Requires the Administrator to: (1) prohibit a licensee having outstanding leverage (debentures or securities guaranteed by the SBA) from incurring third party debt that creates or contributes to an unreasonable risk of default or loss to the Government; and (2) permit such licensees to incur third party debt only on established terms and conditions. Directs the Administrator: (1) to require each licensee, as a condition of approval of an application for leverage, to certify that not less than 20 percent of its financings will be provided to smaller enterprises; and (2) before approving such applications, to determine to what extent the applicant's private capital has been impaired. Provides, with respect to SBIC debentures or securities purchased and guaranteed by the SBA, for: (1) a revised equity investment requirement; (2) a leverage fee; and (3) calculation of the appropriate subsidy rate. (Sec. 7) Allows qualified private sector entities to assist the Investment Division of the SBA in the examination of SBICs. Requires each SBIC licensee to submit semiannual valuations of its loans and investments, except that licensees with no outstanding leverage shall submit such valuations annually. Requires a licensee to notify the Administrator quarterly of material adverse changes in its loans, investments, or operations. Provides independent certification and audit requirements for SBICs. Requires valuation criteria to be established or approved by the Administrator. (Sec. 8) Provides for the appointment of principal receivers and agents upon the Administrator's appointment as a trustee or receiver over an SBIC licensee. Directs the SBA to contract with private sector entities for the orderly liquidation of all licensee assets in SBA receivership or trust. (Sec. 9) States that nothing in the Act shall prohibit the utilization of a book entry or other electronic form of registration for trust certificates. (Sec. 11) Amends the Small Business Act to increase the authorization of appropriations for the guarantee of debentures.
This text is taken from the official record. PoliticalRepo does not editorialize.
Timeline
20 May 1996
Introduced
Read twice and referred to the Committee on Small Business.
Source: IntroReferral
20 May 1996
Introduced
Sponsor introductory remarks on measure. (CR S5379-5380)
Source: IntroReferral
20 May 1996
Introduced
Introduced in Senate
Source: IntroReferral
22 May 1996
Reported
Committee on Small Business. Ordered to be reported with an amendment in the nature of a substitute favorably.
Source: Committee
25 June 1996
Calendars
Placed on Senate Legislative Calendar under General Orders. Calendar No. 455.
Source: Calendars
25 June 1996
Reported
Committee on Small Business. Reported to Senate by Senator Bond with an amendment in the nature of a substitute. Without written report.
Source: Committee
25 June 1996
Reported
Committee on Small Business. Reported to Senate by Senator Bond with an amendment in the nature of a substitute. Without written report.
Source: Committee
25 July 1996
Floor
Measure laid before Senate by unanimous consent. (consideration: CR S8931-8936)
Source: Floor
25 July 1996
Passed
Passed/agreed to in Senate: Passed Senate with an amendment by Unanimous Consent.
Source: Floor
26 July 1996
Introduced
Referred to the House Committee on Small Business.
Source: IntroReferral
26 July 1996
Floor
Message on Senate action sent to the House.
Source: Floor
26 July 1996
Floor
Received in the House.
Source: Floor
Votes
No vote records are attached yet.
Versions
- Referred in House · 26 July 1996 · Download file
- Engrossed in Senate · 25 July 1996 · Download file
- Reported to Senate · 25 June 1996 · Download file
- Introduced in Senate · 20 May 1996 · Download file
Documents
10 official files
Referred in House (text)
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Referred in House (text)
Referred in House · EN · 26 July 1996
Referred in House (PDF)
Referred in House · EN · 26 July 1996
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Engrossed in Senate (text)
Engrossed in Senate · EN · 25 July 1996
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Engrossed in Senate (PDF)
Engrossed in Senate · EN · 25 July 1996
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Passed Senate amended
summary · EN · 25 July 1996
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Reported to Senate (text)
Reported to Senate · EN · 25 June 1996
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Reported to Senate (PDF)
Reported to Senate · EN · 25 June 1996
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Introduced in Senate (text)
Introduced in Senate · EN · 20 May 1996
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Introduced in Senate (PDF)
Introduced in Senate · EN · 20 May 1996
ViewDownloadOpen at official source
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Introduced in Senate
summary · EN · 20 May 1996
Leesvertaling
Vertaal dit document naar jouw taal. PoliticalRepo bewaart geen aparte kopie per EU-taal.
Documentvertaling op verzoek met downloadbare PDF (logo + link naar de officiële bron). Het bronbestand blijft leidend.
Sponsors
- Sen. Bond, Christopher S. [R-MO] · R · Sponsor
- · hssm00 · Standing
- · sssb00 · Standing
Related records
Sources
PoliticalRepo is an index and interpretation layer, not the authoritative legal source.
- Official source: https://www.congress.gov/bill/104th-congress/senate-bill/1784
- Open data entity: https://api.congress.gov/v3/bill/104/s/1784
- us · 104-s-1784 · source updated 7 April 2025