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United States · Bill · S

S. 479 (103rd)

Small Business Incentive Act of 1993

openUnited States· United States Congress· EN

Introduced

2 March 1993

Last action

—

Status

Subcommittee Hearings Held.

Sponsors

—

Subjects

Discovery layer

Source updated

14 January 2025

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Summary

TABLE OF CONTENTS: Title I: Amendment to the Securities Act of 1933 Title II: Amendments to the Investment Company Act of 1940 Small Business Incentive Act of 1993 - Title I: Amendment to the Securities Act of 1933 - Amends the Securities Act of 1933 to increase from $5 million to $10 million the size of small business offerings that are exempt from the registration requirements of the Act. Title II: Amendments to the Investment Company Act of 1940 - Amends the Investment Company Act of 1940 to exclude from its definition of "investment company" any issuer all of whose securities are held by certain investors whom the Securities and Exchange Commission (SEC) has determined possess such financial sophistication, net worth, and other specified factors as not to need the protections of such Act. Empowers the SEC to define such "qualified purchasers." Sets forth conditions under which certain business and industrial development companies that are already subject to regulation by the State in which they are organized are exempt from the regulatory constraints of such Act. Increases to $10 million the maximum aggregate amount of proceeds that certain interstate closed-end investment companies may receive from the sale of their outstanding securities and still retain their exempt status under such Act. Expands the definition of "eligible portfolio company" to include any company which does not have total assets in excess of $4 million and capital and surpluses in excess of $2 million. Declares that a "business development company" is not required to make available significant managerial assistance with respect to any eligible portfolio company or any other company that meets certain SEC criteria. Permits a business development company to: (1) include within its mandatory asset threshold the securities of any eligible portfolio company; (2) acquire the securities of an eligible portfolio company from persons other than such portfolio company itself; (3) issue multiple classes of debt without restriction; and (4) issue warrants, options, or rights to subscribe or convert to voting securities either alone or accompanied by debt or equity securities. Provides conditions under which a business development company may: (1) have a minimum asset coverage of 110 percent; and (2) issue or sell any class of senior security representing indebtedness. Requires a business development company to file with the SEC a written evaluation of the risk factors involved in investment due to the nature of the company's capital structure.

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