It is not the intention of the Legislature by this chapter to provide loans for the capitalization of small business concerns when such funds are reasonably available from private banks or other financial institutions, public or private; however, it is the Legislature's intention to promote and encourage such banks and financial institutions to make loans on a risk basis after giving consideration to the technical and managerial assistance to be provided to loan applicants under the provisions of this chapter.

Finally, the Legislature finds that the programs and activities established and authorized by this chapter are in the public interest; and they are intended to maintain and strengthen the over-all economy of the United States Virgin Islands and to promote the general welfare of its citizens.

HISTORY: --Added Aug. 27, 1969, No. 2530, § 1, Sess. L. 1969, p. 244.

NOTES:

HISTORY

Revision notes.

Pursuant to Section 1 of Act 6753, §§ 1251-1265 of this chapter were placed under the newly designated Subchapter I.

Substituted "United States Virgin Islands" for "Virgin Islands" for purposes of conformity with V.I.C. style pursuant to section 14 of Title 1.

ANNOTATIONS
1. Prerequisite to loan. 2. Purpose of loan.

1. Prerequisite to loan.

Prerequisite to a business receiving a loan from the Small Business Development Agency is that the business has made an effort to and also failed to secure a loan from the private sector or from other governmental sources.  9 V.I.Op.A.G. 16.

2. Purpose of loan.

It was never the intent of Legislature that recipient of Small Business Development Agency loan be used as a conduit to acquire funds and for such funds to be used to benefit another independent business concern or to liquidate the indebtedness of such other business concerns.  9 V.I.Op.A.G. 16.

For Small Business Development Agency to award a loan to a business, knowing that a large portion of the loan proceeds, if not all of it, will be used to liquidate the indebtedness of another corporation, to which the business owes no indebtedness, is a violation of the intent, purpose, objective, as well as the spirit, and letter of the law and closely borders on illegality.  9 V.I.Op.A.G. 16.