Ana Small Business Investments, Inc. v. Small Business Administration of the United States of America

Proceeding under section 309(e) of the Small Business Investment Act of 1958 (Act), 72 Stat. 689 , as amended, 75 Stat. 753 (1961), 15 U.S.C. § 687a(e) (1964), ANA Small Business Investments, Inc. (ANA), appeals from an order of the Small Business Administration (SBA), entered on July 21, 1966.

SBA is an agency of the federal government. On November 20, 1960, it licensed ANA to do business as a small business investment company (SBIC) under the Act. The agency order in question, entered as a result of show cause proceedings instituted by SBA, directed ANA to divest itself of 37,500 shares of Lease-Lite Corporation (Lease-Lite) and eleven percent of the capital stock of Tydeman Machine Works (Tydeman), and relinquish control over two other corporations, Granelli Construction Company, Inc. (Granelli), and R. W. Sperr Co. (Sperr). The order also suspended ANA’s license until it complied with the order.

The hearing examiner found that ANA’s purchase of the Lease-Lite and Tydeman stocks from individual shareholders, rather than the issuing corporation, was a violation of section 304(a) of the Act, 72 Stat. 693 (1958), as amended, 15 U.S.C. § 684 (a) (1964), and SBA’s regulation, 13…