You must obtain SBA's prior written approval to reduce your Regulatory Capital by more than two percent in any fiscal year, unless otherwise permitted under §§107.1560 and 107.1570, provided however, that if you are an Early Stage SBIC, you must obtain SBA's prior written approval for any reduction of your Regulatory Capital, including any reduction pursuant to a Distribution under §107.1180 of this part. At all times, you must retain sufficient Regulatory Capital to meet the minimum capital requirements in the Act and §107.210, and sufficient Leverageable Capital to avoid having excess Leverage in violation of section 303 of the Act and §§107.1150 through 107.1170.

[61 FR 3189, Jan. 31, 1996, as amended at 77 FR 25052, Apr. 27, 2012]