Small business investment companies: Computation of alternative maximum annual cost of money; debenture rate,
[Federal Register: October 18, 1999 (Volume 64, Number 200)]
[Notices]
[Page 56239-56240]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18oc99-104]
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. 99-27028Filed10-15-99; 8:45 am]
BILLING CODE 8025-01-P
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