Loans to and other investments in small business concerns are extremely speculative. Most of such concerns are privately held. Even if a public market for the securities of such concerns exists, the loans and other securities purchased by the Company are often restricted from sale or other transfer for specified and significant periods of time. Thus, such loans and other investments have little, if any, liquidity, and the Company and you, as its shareholders, must bear significantly larger risks, including possible losses on such investments, than otherwise would be the case with traditional investment companies.

According to the U.S. S Administration (the "SBA")...