Loans to state and local development companies--Small Business Administration. Proposed rulemaking.
SBA proposes to amend 13 CFR 108.503--4(c) to limit SBA participation with tax-exempt financing under the program authorized by section 503 of the Small Business Investment Act, 15 U.S.C. 697. Under the proposed rule, SBA would participate in the financing of a project which is also financed by tax-exempt obligations provided the repayment of the proceeds of SBA guaranteed financing is not subordinate to the repayment of the tax-exempt financing. This amendment would be in accordance with existing Federal policy which prohibits Federal agencies from directly or indirectly providing a guarantee to tax-exempt obligations.
D002202:Capital Financing / Q000331:legislation & jurisprudence; D007449:Investments / Q000331:legislation & jurisprudence*; D014481:United States