Title 15, Commerce and TradeRelease 119-110

§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 Sep 22, 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 the report is late, unless it shows the delay was for a good reason and not because it ignored the rule. The penalties go to the United States, and the Administration can sue to collect them. Before a missed filing, the Administration can, by rule or if a company asks, excuse a small business investment company entirely or partly from these penalties. The Administration must give notice and a chance for a hearing first. It can set conditions, time limits, or other steps instead, if doing so does not conflict with the public interest or its need to protect the Administration.

Full Legal Text

Title 15, §687g

Commerce and Trade, Source: USLM XML via OLRC

(a)Report violations

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)Exemption from reporting requirements

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

Sep 22, 2026

Release point: 119-110