Part 107 — Small Business Investment Companies
Subpart A — Introduction to Part 107
Subpart B — Definition of Terms Used in Part 107
Subpart C — Qualifying for an SBIC License
- § 107.100— Organizing a Section 301(c) Licensee.
- § 107.115— 1940 Act and 1980 Act Companies.
- § 107.130— Requirement for qualified management.
- § 107.140— SBA approval of initial Management Expenses.
- § 107.150— Management-ownership diversification requirement.
- § 107.160— Special rules for Licensees formed as limited partnerships.
- § 107.200— Adequate capital for Licensees.
- § 107.210— Minimum capital requirements for Licensees.
- § 107.230— Permitted sources of Private Capital for Licensees.
- § 107.240— Limitations on including non-cash capital contributions in Private Capital.
- § 107.300— License application form and fee.
- § 107.305— Evaluation of license applicants.
- § 107.320— Leverage portfolio diversification.
Subpart D — Changes in Ownership, Control, or Structure of Licensee; Transfer of License
- § 107.400— Changes in ownership of 10 percent or more of Licensee but no change of Control.
- § 107.410— Changes in Control of Licensee (through change in ownership or otherwise).
- § 107.420— Prohibition on exercise of ownership or Control rights in Licensee before SBA approval.
- § 107.430— Notification to SBA of transactions that may change ownership or Control.
- § 107.440— Standards governing prior SBA approval for a proposed transfer of Control.
- § 107.450— Notification to SBA of pledge of Licensee's shares.
- § 107.470— SBA approval of merger, consolidation, or reorganization of Licensee.
- § 107.475— Transfer of license.
Subpart E — Managing the Operations of a Licensee
- § 107.500— Lawful operations under the Act.
- § 107.501— Identification.
- § 107.502— Representations to the public.
- § 107.503— Licensee's adoption of an approved valuation policy.
- § 107.504— Equipment and office requirements.
- § 107.506— Safeguarding Licensee's assets/Internal controls.
- § 107.507— Violations based on false filings and nonperformance of agreements with SBA.
- § 107.509— Employment of SBA officials.
- § 107.510— SBA approval of Licensee's Investment Adviser/Manager.
- § 107.520— Management Expenses of a Licensee.
- § 107.530— Restrictions on investments of idle funds by leveraged Licensees.
- § 107.550— Prior approval of secured third-party debt of Leveraged Licensees.
- § 107.560— Subordination of SBA's creditor position.
- § 107.565— Restrictions on third-party debt of Early Stage SBICs.
- § 107.585— Distributions and reductions in Regulatory Capital.
- § 107.590— Licensee's requirement to maintain active operations.
Subpart F — Recordkeeping, Reporting, and Examination Requirements for Licensees
- § 107.600— General requirement for Licensee to maintain and preserve records.
- § 107.610— Required certifications for Loans and Investments.
- § 107.620— Requirements to obtain information from Portfolio Concerns.
- § 107.630— Requirement for Licensees to file financial statements with SBA (Form 468).
- § 107.640— Requirement to file Portfolio Financing Reports (SBA Form 1031).
- § 107.650— Requirement to report portfolio valuations to SBA.
- § 107.660— Other items required to be filed by Licensee with SBA.
- § 107.665— Civil penalties.
- § 107.670— Application for exemption from civil penalty for late filing of reports.
- § 107.680— Reporting changes in Licensee not subject to prior SBA approval.
- § 107.690— Examinations.
- § 107.691— Responsibilities of Licensee during examination.
- § 107.692— Examination fees.
Subpart G — Financing of Small Businesses by Licensees
- § 107.700— Compliance with size standards in part 121 of this chapter as a condition of Assistance.
- § 107.710— Requirement to finance smaller enterprises.
- § 107.720— Small Businesses that may be ineligible for financing.
- § 107.730— Financings which constitute conflicts of interest.
- § 107.740— Portfolio diversification (“Overline” limitation).
- § 107.750— Conditions for financing a change of ownership of a Small Business.
- § 107.760— How a change in size or activity of a Portfolio Concern affects the Licensee and the Portfolio Concern.
- § 107.800— Financings in the form of Equity Securities.
- § 107.810— Financing in the form of Loans.
- § 107.815— Financings in the form of Debt Securities.
- § 107.820— Financings in the form of guarantees.
- § 107.825— Purchasing securities from an underwriter or other third party.
- § 107.830— Duration/term of financing.
- § 107.850— Restrictions on redemption of Equity Securities.
- § 107.855— Interest rate ceiling and limitations on fees charged to Small Businesses (“Cost of Money”).
- § 107.860— Financing fees and expense reimbursements a Licensee may receive from a Small Business.
- § 107.865— Control of a Small Business by a Licensee.
- § 107.880— Assets acquired in liquidation of Portfolio securities.
- § 107.885— Disposition of assets to Licensee's Associates or to competitors of Portfolio Concern.
- § 107.900— Management fees for services provided to a Small Business by Licensee or its Associate.
Subpart H — Non-leveraged Licensees—Exceptions to Regulations
Subpart I — SBA Financial Assistance for Licensees (Leverage)
- § 107.1100— Types of Leverage and application procedures.
- § 107.1120— General eligibility requirements for Leverage.
- § 107.1130— Leverage fees and Annual Charges.
- § 107.1150— Maximum amount of Leverage.
- § 107.1180— Required distributions to SBA by Early Stage SBICs.
- § 107.1181— Interest reserve requirements for Early Stage SBICs.
- § 107.1182— Valuation requirements for Early Stage SBICs based on Capital Impairment Percentage.
- § 107.1200— SBA's Leverage commitment to a Licensee—application procedure, amount, and term.
- § 107.1210— Payment of leverage fee upon receipt of commitment.
- § 107.1220— Requirement for Licensee to file quarterly financial statements.
- § 107.1230— Draw-downs by Licensee under SBA's Leverage commitment.
- § 107.1240— Funding of Licensee's draw request through sale to short-term investor.
- § 107.1500— General description of Participating Securities.
- § 107.1505— Liquidity requirements for Licensees issuing Participating Securities.
- § 107.1510— How a Licensee computes Earmarked Profit (Loss).
- § 107.1520— How a Licensee computes and allocates Prioritized Payments to SBA.
- § 107.1530— How a Licensee computes SBA's Profit Participation.
- § 107.1540— Distributions by Licensee—Prioritized Payments and Adjustments.
- § 107.1550— Distributions by Licensee—permitted “tax Distributions” to private investors and SBA.
- § 107.1560— Distributions by Licensee—required Distributions to private investors and SBA.
- § 107.1570— Distributions by Licensee—optional Distribution to private investors and SBA.
- § 107.1575— Distributions on other than Payment Dates.
- § 107.1580— Special rules for In-Kind Distributions by Licensees.
- § 107.1600— SBA authority to issue and guarantee Trust Certificates.
- § 107.1610— Effect of prepayment or early redemption of Leverage on a Trust Certificate.
- § 107.1620— Functions of agents, including Central Registration Agent, Selling Agent and Fiscal Agent.
- § 107.1630— SBA regulation of Brokers and Dealers and disclosure to purchasers of Leverage or Trust Certificates.
- § 107.1640— SBA access to records of the CRA, Brokers, Dealers and Pool or Trust assemblers.
- § 107.1700— Transfer by SBA of its interest in Licensee's Leverage security.
- § 107.1710— SBA authority to collect or compromise its claims.
- § 107.1720— Characteristics of SBA's guarantee.
Subpart J — Licensee's Noncompliance
- § 107.1800— Licensee's agreement to terms and conditions in §§ 107.1810 and 107.1820.
- § 107.1810— Events of default and SBA's remedies for Licensee's noncompliance with terms of Debentures.
- § 107.1820— Conditions affecting issuers of Preferred Securities and/or Participating Securities.
- § 107.1830— Licensee's Capital Impairment—definition and general requirements.
- § 107.1840— Computation of Licensee's Capital Impairment Percentage.
- § 107.1845— Determination of Capital Impairment Percentage for Early Stage SBICs.
- § 107.1850— Watchlist.