SBA will evaluate an Early Stage SBIC license applicant based on the same factors applicable to other license applicants, as set forth in §107.305, with particular emphasis on managers' skills and experience in evaluating and investing in early stage companies. In addition, SBA reserves the right to maintain diversification among Early Stage SBICs with respect to:

(a) The year in which they commence operations, and

(b) Their geographic location.

[77 FR 25052, Apr. 27, 2012]