Small Business Investment Company program—Continued
GAO review of-Continued

Management control system, summary.
Problem cases, increase in.......

Recommended improvements--.

SBA examinations of SBIC's, inadequacies of

SBA's responsibilities----.

Licenses in force and companies reporting, comparison of---.

Licensing:

Activity by fiscal year..

Freeze on_-

Investigation of applicants_

Procedures inadequate-

Standards____

Page

58, 59

56, 57

60, 61

59, 60, 71, 72

55, 56

249

5, 22

9, 18

40, 41

253,254

252

5

281

7

Liquidation procedures__

Maximum amount an SBIC may borrow....

8, 14, 214, 250, 252, 253

267, 268
48-50

29, 30

273, 274
21, 27, 53

52
25, 26

8, 48, 49
259, 269
255, 256

27

5

8

6, 14,

6, 14

19-21, 27, 28, 31-36, 42-46, 240–247, 250-253, 256, 264–266, 272, 292
Capital in, private and Government..

Losses, estimated___ 6, 19-21, 31, 32, 43, 45, 46, 240–243, 245, 265, 266, 292
Nonviable

Small Business Investment Company program-Continued

Reporting SBIC's with Government funds, percent deficit to private Page

capital

SBA Deputy Administrator responsible for----

SBA disbursement of debentures and loans, by fiscal year--
Selected financial data of reporting companies....
Special discretionary portfolio_.

Tax incentives defective and inadequate..
Violators of regulations, prosecution of__
Write-off of losses by SBA___.

243-246, 292

11

18

15-17

270

249

10, 274-276
267, 268

Small Business Subcommittee of the Senate Committee on Banking and
Currency

Staats, Elmer B___

Comptroller General of the United States___

61, 219, 255, 297

Fees and salaries allowed SBIC officers and employees, study not
made of

General Accounting Office (GAO) review of SBIC program:

54-61, 65, 67, 68, 71-73

55

72

55

64

63

63, 64

62

61, 62, 65

72

62, 63

56

57, 58

57, 71

58, 59

56, 57

60, 61

59, 60, 71, 72

55, 56
279

117, 141-143, 288, 289

T

155, 157, 178, 228, 287
62, 70, 72, 73

70

71

62, 63

279

Management control system, summary of

Problem cases, increase in__

Recommended improvements_

SBA examinations of SBIC's, inadequacies of_.

SBA's responsibilities-

Stults, Walter B

Sturdevant, H. Raymond---

81, 83-86, 94-96, 98, 100, 106, 111-131, 133, 135, 136, 151, 157, 166,
167, 171, 180, 181, 182, 188, 194-210, 218, 227, 231, 241-246, 271, 280,
282.

AMCAP Co--.

Bloomington Small Business Investment Co.:

Borrowed funds, purchased with

Chatham Bank loan to---

207

196, 208
208, 209, 291

Walsh, John J.-Continued

Bloomington Small Business Investment Co.-Continued
Dixieland Insurance Agency transactions with....
Government funds advanced to:

Page

205, 206, 291

196, 207, 291
196, 291
196.

196

Jefferson County Development Co. transaction with------- 204, 205, 291
Licensed by SBA as an SBIC, May 1, 1959–
Loss to Government, estimated__

196

197, 198, 209, 291

Michigan City Land Development Co. transaction with__
Mutual Development Corp., transactions with___.
Mutual Mortgage Service, Inc., transactions with_.
Mutual Sanitation Corp., transactions with_--
Private capital in-----

196, 197

Rust, Lawrence, original owner_-.

Self-serving loans made after August 1, 1961, to companies owned
or controlled by Huette and Koehl___.

199-207, 291

Tinley Park Savings & Loan Association loans to purchasers
of_-_-

Bootstrap financing-

Chatham Bank__.

196, 197, 208-
74, 115

203, 204, 208, 209

Coin-Meter, Inc., stock of, purchased by Frontiers Capital Corp.---- 96, 97
Economic Security Corp.:

Frontiers Capital Corp., transactions between__.
Lunar Enterprises stock purchased by‒‒‒

Levenson, Franklyn, owner_.

Straw Corporation-----

ETA, Inc, loan from Frontiers Capital Corp. for purchase of Admiral
Motor Hotel stock_-_.

Exchange Bank of Hollywood, S.C., stock of, purchased by Franklin
Levenson

Frontiers Capital Corp.:

Cash acquired by new owners at time of purchase_--

87,95

87, 95

Construction Facilities Inc., loan from, for benefit of Messrs.
Gordon and Levenson___

85,98

Economic Security Corp., loans from----

87,95

Merchandise National Bank of Chicago loan of $277,000 to buyers
of

Rockville, Md., corporation---.

SBA denied owners permission to reduce size_--

Sale of, by Milton Hammer and Associates to Milton Gordon and
Franklyn Levenson:

Zimmerman, S. Mort, loan of $70,000 to buyers of.
Growth Industry Corp., financial impairment of---
Huck, L. C., financial statements of---
Overline loans_-_.

Cross Roads Motel, Inc.; Cross Roads Industrial Park, Inc.; and

Walsh, John J.-Continued

Putnam Investors, Inc.-Continued

Officers to serve without compensation__.
Owners and officers___

Check signing procedures of--

Funds used for personal purposes.
Salaries

Self-dealing loans and investments traced to companies owned

or controlled by---.

Stock transfers between_

Pitt, Inc., loans.

Private capital___.

Proposal to operate as SBIC_

SBA denied loan request_.

SBA licensed__.

Stock pledged for personal loans by owners--

VAL Corp., loans_-

Small Business Administration:

Page

157

112

114, 115, 128

121-124, 289

119, 120

124–131, 161, 167, 290

113, 114

130, 131, 290

112, 113

112, 113, 287

112

112

113, 114

130, 290

Reporting SBIC's with Government funds, percent deficit to pri-

Frontiers Capital Corp.'s transfer of $115,000 to Economic Security
Corp. for purchase of Lunar Enterprises stock, agent in_-_- 92-95, 97
Reluctant to testify__
Ungerleider, Harold, counsel_.

Small Business Administration, violations of regulations of, han-
dling of

36, 37

Zimmerman, S. Mort_

86

Zumas, Nicholas‒‒‒‒‒‒‒ 132, 138, 149, 150, 154, 155, 157, 160, 162, 166, 172, 173, 175