PUBLIC LAW 96-477—OCT. 21, 1980
94 STAT. 2275
Public Law 96-477 96th Congress An Act To amend the Federal securities laws to provide incentives for small business investment, and for other purposes.
Oct. 21, 1980 [H.R. 7554]
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be Small Business cited as the "Small Business Investment Incentive Act of 1980". J j ^ S f Act of 1980
TITLE I—AMENDMENTS TO THE INVESTMENT COMPANY ACT OF 1940
15 USC 80a-5i "ote.
DEFINITIONS
SEC. 101. Section 2(a) of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)) is amended by adding at the end thereof the following new paragraphs: "(46) 'Eligible portfolio company' means any issuer which— "(A) is organized under the laws of, and has its principal place of business in, any State or States; "(B) is neither an investment company as defined in section 3 is use 80a-3. (other than a small business investment company which is licensed by the Small Business Administration to operate under the Small Business Investment Act of 1958 and which is a wholly- 15 USC 66I note. owned subsidiary of the business development company) nor a company which would be an investment company except for the exclusion from the definition of investment company in section 3(C); and
Post, pp. 2276,
"(C) satisfies one of the following: ^295. "(i) it does not have any class of securities with respect to which a member of a national securities exchange, broker, or dealer may extend or maintain credit to or for a customer pursuant to rules or regulations adopted by the Board of Governors of the Federal Reserve System under section 7 of the Securities Exchange Act of 1934; 15 USC 78g. "(ii) it is controlled by a business development company, either alone or as part of a group acting together, and such business development company in fact exercises a controlling influence over the management or policies of such eligible portfolio company and, as a result of such control, has an affiliated person who is a director of such eligible portfolio company; or "(iii) it meets such other criteria as the Commission may, by rule, establish as consistent with the public interest, the protection of investors, and the purposes fairly intended by the policy and provisions of this title. "(47) 'Making available significant managerial assistance' by a business development company means— "(A) any arrangement whereby a business development company, through its directors, officers, employees, or general part-
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