Small Business Investment Act Law and Legal Definition

The Small Business Investment Act (Act) is a federal legislation providing regulations for the formation of investment companies. It was enacted in 1958 and is codified in 15 USCS prec § 661. The Act also provides license to supply long-term equity capital to small businesses. The Act provides loan facilities to new and small business establishments. The Act makes capital borrowed from the U.S. government available to small businesses through banks and non-bank lending institutions. The Act ensures fair proportion of government contracts and sales of surplus property to small businesses. The Act also provides for assistance in the development of small businesses owned and operated by individuals who are socially and economically disadvantaged.