University of Baltimore Law Review Volume 3 Article 2 Issue 2 Spring 1974 1974 Venture Capital for Small Business Eric Weinmann Small Business Administration Follow this and additional works at: http://scholarworks.law.ubalt.edu/ublr Part of the Business Administration, Management, and Operations Commons, and the Law Commons Recommended Citation Weinmann, Eric (1974) "Venture Capital for Small Business," University of Baltimore Law Review: Vol. 3: Iss. 2, Article 2. Available at: http://scholarworks.law.ubalt.edu/ublr/vol3/iss2/2 This Article is brought to you for free and open access by ScholarWorks@University of Baltimore School of Law. It has been accepted for inclusion in University of Baltimore Law Review by an authorized administrator of ScholarWorks@University of Baltimore School of Law. For more information, please contact
[email protected]. VENTURE CAPITAL FOR SMALL BUSINESS* Eric Weinmannt To close the "equity gap" for small business, Congress enacted the Small Business Investment Act of 1958. Under this Act, the Small Business Administration licenses, regulates and finances investment companies which assist small concerns. The author describes how the Small Business Administration does this under a revised set of regulations, published in late 1973. BACKGROUND In 1958, Congress established a program to be administered by the Small Business Administration ("SBA"), by enacting the Small Business Investment Act of 1958 ("SBIAct").' Its purpose was to close the 2 "equity gap" which was found to affect small business adversely. The term "equity gap" denotes that area in the capital markets that lies between the banks and other institutional lenders, which are not geared to make equity or long-term investments; the SBA's programs of financial assistance to small concerns; and the public securities markets which do not favor the smaller and smallest business concerns.