Small Business Investment Company Reform Act of 1996

[AI summary unavailable — showing source text] Small Business Investment Company Reform Act of 1996 - Amends the Small Business Investment Act of 1958 to revise and add definitions. (Sec. 3) Includes as a small business investment company (SBIC) a limited liability company organized and operated in accordance with a State statute approved by the Small Business Administration (SBA). Requires each SBIC license applicant to apply to the SBA Administrator. Requires the Administrator to provide a status report to such applicant within 90 days and to act on such application within a reasonable time. Specifies matters to be considered. Provides application approval procedures for certain applicants with private capital of not less than $3 million. Repeals a provision authorizing the organization and chartering of SBICs formed to provide financing to socially or economically disadvantaged persons. (Sec. 4) Increases the private capital requirement of SBICs to: (1) $5 million; or (2) $10 million, for applicants seeking authority to issue participating securities to be purchased or guaranteed by the SBA (with an exception in special circumstances and for good cause). Requires the Administrator to determine the adequacy of the private cap…