15 USC 681 - Organization

U.S Code last checked for updates: Nov 26, 2024

§ 681.

Organization

(a)

Incorporation and charter under State law, period of succession; area of operations

(b)

Articles of incorporation; approval

(c)

Issuance of license

(1)

Submission of application

(2)

Procedures

(A)

Status

(B)

Approval or disapproval

Within a reasonable time after receiving a completed application submitted in accordance with this subsection and in accordance with such requirements as the Administrator may prescribe by regulation, the Administrator shall—

(i)

approve the application and issue a license for such operation to the applicant if the requirements of this section are satisfied; or

(ii)

disapprove the application and notify the applicant in writing of the disapproval.

(3)

Matters considered

In reviewing and processing any application under this subsection, the Administrator—

(A)

shall determine whether—

(i)

the applicant meets the requirements of subsections (a) and (c) of section 682 of this title; and

(ii)

the management of the applicant is qualified and has the knowledge, experience, and capability necessary to comply with this chapter;

(B)

shall take into consideration—

(i)

the need for and availability of financing for small business concerns in the geographic area in which the applicant is to commence business;

(ii)

the general business reputation of the owners and management of the applicant; and

(iii)

the probability of successful operations of the applicant, including adequate profitability and financial soundness;

(C)

shall not take into consideration any projected shortage or unavailability of leverage; and

(D)

shall give first priority to an applicant that is located in an underlicensed State with below median financing, as determined by the Administrator.

(4)

Exception

(A)

In general

Notwithstanding any other provision of this chapter, the Administrator may, in the discretion of the Administrator and based on a showing of special circumstances and good cause, approve an application and issue a license under this subsection with respect to any applicant that—

(i)

has private capital of not less than $3,000,000;

(ii)

would otherwise be issued a license under this subsection, except that the applicant does not satisfy the requirements of section 682(a) of this title; and

(iii)

has a viable business plan reasonably projecting profitable operations and a reasonable timetable for achieving a level of private capital that satisfies the requirements of section 682(a) of this title.

(B)

Leverage

An applicant licensed pursuant to the exception provided in this paragraph shall not be eligible to receive leverage as a licensee until the applicant satisfies the requirements of section 682(a) of this title, unless the applicant—

(i)

is located in a State that—

(I)

is not served by a licensee; or

(II)

is an underlicensed State; and

(ii)

agrees to be limited to 1 tier of leverage available under section 682(b) of this title, until the applicant meets the requirements of section 682(a) of this title.

(d)

Repealed. Pub. L. 104–208, div. D, title II, § 208(b)(3)(A), Sept. 30, 1996, 110 Stat. 3009–742

(e)

Fees

(1)

In general

(2)

Use of amounts

Fees collected under this subsection—

(A)

shall be deposited in the account for salaries and expenses of the Administration; and

(B)

are authorized to be appropriated solely to cover the costs of licensing examinations.

(Pub. L. 85–699, title III, § 301, Aug. 21, 1958, 72 Stat. 691; Pub. L. 86–502, § 4, June 11, 1960, 74 Stat. 196; Pub. L. 87–341, § 11(a), (b), Oct. 3, 1961, 75 Stat. 756; Pub. L. 90–104, title II, § 202, Oct. 11, 1967, 81 Stat. 269; Pub. L. 92–595, § 2(b), Oct. 27, 1972, 86 Stat. 1314; Pub. L. 94–305, title I, § 106(b)–(d), June 4, 1976, 90 Stat. 666; Pub. L. 95–507, title I, § 104, Oct. 24, 1978, 92 Stat. 1758; Pub. L. 100–590, title I, § 105, Nov. 3, 1988, 102 Stat. 2993; Pub. L. 104–208, div. D, title II, § 208(b)(1)–(3)(A), Sept. 30, 1996, 110 Stat. 3009–741, 3009–742; Pub. L. 105–135, title II, §§ 212, 214, Dec. 2, 1997, 111 Stat. 2601; Pub. L. 115–333, § 2(2), Dec. 19, 2018, 132 Stat. 4488.)

cite as: 15 USC 681