94-31788. Computation of Alternative Maximum Annual Cost of Money to Small Business Concerns

[Federal Register Volume 59, Number 247 (Tuesday, December 27, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-31788]


[[Page Unknown]]

[Federal Register: December 27, 1994]


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SMALL BUSINESS INVESTMENT COMPANY

 

Computation of Alternative Maximum Annual Cost of Money to Small 
Business Concerns

    13 CFR 107.302 limits maximum annual Cost of Money (as defined in 
13 CFR 107.3) that may be imposed upon a Small Concern 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 elsewhere in 13 CFR 107.3 in terms that 
require SBA to publish, from time to time, the rate charged on ten-year 
debentures sold by Licensees to the public.
    Accordingly, Licensees are hereby notified that effective the date 
of publication of this Notice, and until further notice, the Debenture 
Rate for computation of maximum cost of money pursuant to 13 CFR 
107.302 is 8.50 percent per annum.
    13 CFR 107.302 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 Business 
Investment Act of 1958, as amended, to 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: December 20, 1994.
Robert D. Stillman,
Associate Administrator for Investment.
[FR Doc. 94-31788 Filed 12-23-94; 8:45 am]
BILLING CODE 8025-01-M