Title 15 — Commerce and TradeRelease 119-73not60

§687g Penalties and Forfeitures

Title 15 › Chapter 14B— SMALL BUSINESS INVESTMENT PROGRAM › Subchapter III— INVESTMENT DIVISION PROGRAMS › Part A— Small Business Investment Companies › § 687g

Last updated Apr 3, 2026|Official source

Summary

If a licensee fails to file a required regular or special report, it must pay up to $100 for each day it keeps missing the report, unless it proves the missed filing was for reasonable cause and not willful neglect. The money belongs to the U.S. government, and the agency can sue to collect the penalties. Before any missed filing happens, the agency can, after notice and a chance for a hearing or if the company asks, grant a full or partial exemption to a small business investment company. The agency can set conditions, time limits, and different rules instead of the usual filing if it finds doing so is consistent with the public interest and agency protection.

Full Legal Text

Title 15, §687g

Commerce and Trade — Source: USLM XML via OLRC

(a)Except as provided in subsection (b) of this section, a licensee which violates any regulation or written directive issued by the Administrator, requiring the filing of any regular or special report pursuant to section 687b(b) of this title, shall forfeit and pay to the United States a civil penalty of not more than $100 for each and every day of the continuance of the licensee’s failure to file such report, unless it is shown that such failure is due to reasonable cause and not due to willful neglect. The civil penalties provided for in this section shall accrue to the United States and may be recovered in a civil action brought by the Administration.

(b)The Administration may by rules and regulations, or upon application of an interested party, at any time previous to such failure, by order, after notice and opportunity for hearing, exempt in whole or in part, any small business investment company from the provisions of subsection (a) of this section, upon such terms and conditions and for such period of time as it deems necessary and appropriate, if the Administration finds that such action is not inconsistent with the public interest or the protection of the Administration. The Administration may for the purposes of this section make any alternative requirements appropriate to the situation.

Reference

Citations & Metadata

Citation

15 U.S.C. § 687g

Title 15 — Commerce and Trade

Last Updated

Apr 3, 2026

Release point: 119-73not60