Small Business: SBA's Preferred Stock Repurchase Program (Fact Sheet,
08/18/95, GAO/RCED-95-249FS).

The Small Business Administration (SBA) formerly provided investment
capital to Specialized Small Business Investment Companies (SSBIC) by
purchasing their three-percent preferred stock. In 1989, Congress
authorized SBA to allow SSBIC to repurchase that stock. Following a
pilot program, SBA began allowing SSBIC to buy back their stock at 35
percent of the price paid by SBA. Accrued unpaid dividends were either
forgiven or were written off over a five-year period. In May 1995, GAO
reported (GAO/RCED-95-146FS) that 17 SSBIC had repurchased their stock
under the program. Since then, another four of the current 90 SSBIC have
repurchased their stock. This fact sheet provides information on each
SSBIC participating in the stock repurchase program, including (1) the
repurchase price paid, unpaid dividends forgiven or allowed to be
amortized, and the method used to finance the repurchase; (2) the
company's private capital, SBA financing, and capital impairment at the
time of the stock repurchase; and (3) the company's investments in small
businesses during the last five years and the value of the investment
portfolio at the time of the company's most recent report to SBA

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  RCED-95-249FS
     TITLE:  Small Business: SBA's Preferred Stock Repurchase Program
      DATE:  08/18/95
   SUBJECT:  Small business assistance
             Small business investment companies
             Investments
             Securities
             Capital
             Small business loans
             Business development loans
IDENTIFIER:  SBA Specialized Small Business Investment Companies Program
             SBA Three Percent Preferred Stock Repurchase Program
             
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