Proposed Reforms Of The Small Business Investment Company Program

Author : United States; Congress; House; Committee on Small Business
Publisher : Forgotten Books
ISBN 13 : 9781330358047
Total Pages : 132 pages
Book Rating : 4.3/5 (58 download)

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Download or read book Proposed Reforms of the Small Business Investment Company Program written by United States; Congress; House; Committee on Small Business and published by Forgotten Books. This book was released on 2015-06-25 with total page 132 pages. Available in PDF, EPUB and Kindle. Book excerpt: Excerpt from Proposed Reforms of the Small Business Investment Company Program: Hearing Before the Committee on Small Business, House of Representatives, One Hundred Fourth Congress, Second Session, Washington, DC, June 6, 1996 The Committee met, pursuant to notice, at 10 a.m. in room 2359, Rayburn House Office Building, Hon. Jan Meyers, (chair of the Committee) presiding. Chair Meyers. Good morning. The Committee will come to order. Today the Committee on Small Business meets to discuss proposed reforms of the Small Business Administration's Small Business Investment Company Program. Recently our colleagues in the Senate marked up a bill that makes a number of substantive and necessary changes to the SBIC Program. We will be discussing this legislation along with other proposals in the course of this hearing. In previous hearings, this Committee has heard disturbing testimony regarding the status of the SBIC Program. To the SBA's credit, some of these problems have been remedied, as reflected by the quality of new applicants that are being attracted to the program. Also, we were pleased to hear of the return on the SBA's participating security investment through health care, with other distributions expected shortly. This is heartening, but we should not get carried away. That represents a $260,000 return and repayment of principal, but there are still $300 million of participating securities outstanding. This program has a long way yet to go and I hope to move it to an era of stability and prosperity. With that in mind, I must applaud some of the Senate's efforts. The most important reform in the Senate's bill is an increase in the capital requirements of the program to a minimum of $5 million of private capital. That change reflects the current regulatory atmosphere at the SBA, and I believe that's a valuable move toward increasing the stability of this program. The Senate also increases the funding fees on SBIC's growing new membership. This will improve the substantive rate of the program, though the administration has requested a larger increase to increase payment. While I'm sympathetic to the SBA's position, I want to be sure that we won't be dealing with the serious problem facing the subsidy rates for the 7(a) and 504 Programs where we charge rates and fees that seem to lower the subsidy rate and then suddenly we got hit with a much higher subsidy rate. The last thing we want is to be caught short by an OMB reestimation for fiscal year 1998. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.