Specialized Small Business Investment Companies

SMALL BUSINESS ADMINISTRATION

Specialized Small Business Investment Companies

AGENCY: Small Business Administration.

ACTION: Notice.

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SUMMARY: The Small Business Administration (SBA) implemented its 3%

Preferred Stock Repurchase Program, effective April 1, 1994, for Small

Business Investment Companies licensed under the former section 301(d)

of the Small Business Investment Act (Specialized SBICs or SSBICs).

This notice is to extend the period of availability of the Repurchase

Program.

DATES: This Notice is effective on July 22, 1997. Written comments on

this notice must be received no later than August 21, 1997.

ADDRESSES: Written comments should be sent to Don A. Christensen,

Associate Administrator for Investment, U.S. Small Business

Administration, Suite 6300, 409 Third Street, S.W., Washington, DC

20416. Copies of the April 1, 1994, Notice implementing the Repurchase

Program and SBA Policy and Procedural Release #2021 are available upon

request.

FOR FURTHER INFORMATION CONTACT: Ronald C. Cibolski, Director, Office

of SBIC Operations, Investment Division; telephone (202) 205-6519.

[[Page 39295]]

SUPPLEMENTARY INFORMATION: On June 19, 1992, SBA published a notice in

the Federal Register (the pilot notice) announcing the commencement of

the 3% Preferred Stock Repurchase Pilot Program for Small Business

Investment Companies licensed under section 301(d) of the Small

Business Investment Act of 1958, as amended. See 57 FR 27503. On April

1, 1994, SBA published a notice in the Federal Register fully

implementing the 3% Repurchase Program to allow each eligible SSBIC the

opportunity to apply for the repurchase of its 3% preferred stock held

by SBA. See 59 FR 15491. On June 14, 1994, SBA Policy and Procedural

Release #2021 was issued notifying all licensed SSBICs that the period

of availability for the 3% Repurchase Program would be for three (3)

years following that date. Further, SBA Policy and Procedural Release

#2021 delineated the procedures for applying to repurchase the 3%

preferred stock and set forth the general conditions related to such a

repurchase. Since its implementation, only 58% of the SSBICs with

outstanding 3% preferred stock have participated in the Repurchase

Program. To allow each eligible SSBIC additional time to take advantage

of this opportunity, SBA is extending the period of availability of the

3% Repurchase Program by four (4) years to June 14, 2001. All other

program descriptions and conditions set forth in the April 1, 1994

Notice implementing the Repurchase Program, as well as those delineated

in SBA Policy and Procedural Release #2021, remain unchanged.

Authority: Title III of the Small Business Investment Act 15

U.S.C. 681 et seq.; 15 U.S.C. 683, 687(c), 687b, 687d, 687g, and

687m; as amended by Pub. L. 104-208.

Dated: July 11, 1997.

Aida Alvarez,

Administrator.

[FR Doc. 97-19134 Filed 7-21-97; 8:45 am]

BILLING CODE 8025-01-P