99-27028. Small Business Investment Company; Computation of Alternative Maximum Annual Cost of Money to Small Businesses

[Federal Register Volume 64, Number 200 (Monday, October 18, 1999)]
[Notices]
[Pages 56239-56240]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-27028]


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SMALL BUSINESS ADMINISTRATION


Small Business Investment Company; Computation of Alternative 
Maximum Annual Cost of Money to Small Businesses

    13 CFR 107.855 limits the maximum annual Cost of Money (as defined 
in 13 CFR 107.50) that may be imposed upon a Small Business in 
connection with Financing by means of Loans or through the purchase of 
Debt Securities. The cited regulation incorporates the term ``Debenture 
Rate'', which is defined in 13 CFR 107.50 as the interest rate, as 
published from time to time in the Federal Register by SBA, for ten 
year debentures issued by Licensees and funded through public sales of 
certificates bearing SBA's guarantee.
    Accordingly, Licensees are hereby notified that effective the date 
of publication of this Notice, and until further notice, the Debenture 
Rate, plus the 1 percent annual fee which is added to this Rate to 
determine a base rate for computation of maximum Cost of Money, is 8.22 
percent per annum.
    13 CFR 107.855 does not supersede or preempt any applicable law 
imposing an interest ceiling lower than the ceiling imposed by its own 
terms. Attention is directed to Section 308(i) of the Small

[[Page 56240]]

Business Investment Act of 1958, as amended, regarding that law's 
Federal override of State usury ceilings, and to its forfeiture and 
penalty provisions.

(Catalog of Federal Domestic Assistance Program No. 59.011, small 
business investment companies)

    Dated: October 7, 1999.
Don A. Christensen,
Associate Administrator for Investment.
[FR Doc. 99-27028 Filed 10-15-99; 8:45 am]
BILLING CODE 8025-01-P