97-8431. Small Business Investment Company; Computation of Alternative Maximum Annual Cost of Money to Small Businesses

[Federal Register Volume 62, Number 64 (Thursday, April 3, 1997)]
[Notices]
[Page 15951]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-8431]


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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 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, 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 8.38 
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 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: March 28, 1997.
Don A. Christensen,
Associate Administrator for Investment.
[FR Doc. 97-8431 Filed 4-2-97; 8:45 am]
BILLING CODE 8025-01-P