long-term loans to small-business concerns

long-term loans to small-business concerns Sec. 305. (a) Each company is authorized to make loans, in the manner and subject to the conditions described in this section, to incorporated and unincorporated small-business concerns in order to provide such concerns with funds needed for sound financing, growth, modernization, and expansion. (b) Loans made under this section may be made directly or in cooperation with other lending institutions through agreements to participate on an immediate or deferred basis. In agreements to participate in loans on a deferred basis under this subsection, the participation by the company shall not be in excess of 90 per centum of the balance of the loan outstanding at the time of disbursement. (c) The maximum rate of interest for the company’s share of any72 Stat. 694 loan made under this section shall be determined by the Administration. (d) Any loan made under this section shall have a maturity not exceeding twenty years. (e) Any loan made under this section shall be of such sound value, or so secured, as reasonably to assure repayment. (f) Any company which has made a loan to a small-business concern under this section is authorized to extend the maturity of or renew such loan for additional periods, not exceeding ten years, if the company finds that such extension or renewal will aid in the orderly liquidation of such loan.