Business Development Company Act of 2006（商业发展公司的2006年）.pdf

Company Introduction The Department of Financial Institutions (“DFI”) recognized a prevailing need to stimulate small business, agriculture, community development and historic preservation in many local communities throughout Washington State. DFI also believed that it could overhaul and modernize an obscure and seldom-used industrial development company law to help meet these needs, while at the same time facilitating compliance with the Community Reinvestment Act by banks and thrifts serving Washington State. The result was the enactment by the Washington State Legislature of the Business Development Company Act of 2006 (“Act”) administered by DFI’s Division of Banks. Basics of the New Act The new Act facilitates an innovative type of financial institutions charter, which encourages banks, thrifts and/or credit unions, the investment community, private entrepreneurs, and even government-sponsored entities (GSEs) to form business development companies that will lend to or invest in small business, agriculture, community development and/or historical preservation. The new Act was designed to promote the financial integrity of banks and savings banks by making it easier for them to be in compliance with their Community Reinvestment Act obligations. Second, the Act helps assure banks and thrifts that the business development companies in which they invest abide by safe and sound practices. Third, the Act helps eliminate unfair barriers to entry for small business, agriculture and community development projects by improving access to credit and choice of financial products. And finally, by encouraging all of the above, the Act helps enhance the economic vitality of the state. DFI had four main goals in drafting the new Act: • “User-Friendliness”. The Act had to be user-friendly, in the sense that business development companies ought to be easier to charter, govern, rais