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Full-Text Articles in Law
The Small Business Investment Incentive Act Of 1980 And Venture Capital Financing, Richard G. Tashjian
The Small Business Investment Incentive Act Of 1980 And Venture Capital Financing, Richard G. Tashjian
Fordham Urban Law Journal
The small business community is a diverse component of the national economy and if very often the leader of developing new technology, products and services. Traditionally, small businesses do not raise capital in the conventional public markets; rather, they generally receive their capital from the venture capital industry. Once a venture capital company becomes publicly held or reaches a certain size, however, it becomes subject to detailed regulation under the Investment Company Act of 1940. The venture capital industry has consistently maintained that it cannot operate and function efficiently under the 1940 Act, and the result has been a lack …
Royalty Financing As A Tool For Economic Development, Michael Katovitz
Royalty Financing As A Tool For Economic Development, Michael Katovitz
Fordham Urban Law Journal
Venture capital funding is the segment of the capital market most oriented toward financing new, high-risk companies. Since 1970, however, fewer firms have been able to go public, decreasing the importance of venture capital as a mechanism for financing new firms. Because many new firms have been unable to go public, venture capitalists have to seek other methods of investments. These alternate methods have proven unacceptable and have contributed to a decrease in the use of venture capital as a source for financing new firms. This Note will first discuss the role that government has played in providing adequate financing …
A Model For Small Business Financing: The Canada Development Corporation, Marshall A. Heinberg
A Model For Small Business Financing: The Canada Development Corporation, Marshall A. Heinberg
Fordham Urban Law Journal
Development finance institutions which provide equity capital have been used to stimulate economic growth worldwide. The potential uses for equity development finance organizations in the United States have been recognized. Probably the most dramatic use, and one with broad economic ramifications is the establishment of an equity development finance institution to correct imperfections in the private capital market system of this country. One of the major flaws of the American capital market has been that the supply of capital for new small sized businesses has been artificially scarce. The focus of this Note will be , first to examine the …
Debt-Equity Financing Guidelines: Capital Problems For Closely Held Businesses, Donald R. Ames
Debt-Equity Financing Guidelines: Capital Problems For Closely Held Businesses, Donald R. Ames
Fordham Urban Law Journal
Section 385 of the Internal Revenue Code authorized the Treasury to prescribe regulations to help both courts and taxpayers determine whether an interest in a corporation qualified as debt or equity for federal income tax purposes. On December 29, 1980, Treasury Decision 7747 was issued stating the final regulations for determining whether certain interests in a corporation should be treated as stock or indebtedness. The regulations are intended to provide certainty through objective tests for an area heretofore plagued by confusion. The new rules will generally apply to certain interests in small, closely held corporations created after April 30, 1980. …
Insider Loans: How Restricted Is The Banker?, Patricia A. Murphy
Insider Loans: How Restricted Is The Banker?, Patricia A. Murphy
Fordham Urban Law Journal
This article examines the Federal Institutions Regulatory and Interest Rate Control Act of 1978 ("FIRA"), bank reform legislation that imposed stricter controls on insider lending transactions that Congress had seen as one of the primary threats to the successful operations of banks. It highlights the differences between state and federally chartered banks, illustrating that state chartered banks are not subject to federal banking provisions unless they become a member of the Federal Reserve System. It argues that FIRA provides the safeguards necessary to control bank insider abuses by imposing a myriad of lending limitations and reporting mechanisms. It discusses and …