13 C.F.R. PART 107--SMALL BUSINESS INVESTMENT COMPANIES
TITLE 13--Business Credit and Assistance
CHAPTER I--SMALL BUSINESS ADMINISTRATION
PART 107--SMALL BUSINESS INVESTMENT COMPANIES
Subpart A--INTRODUCTION TO PART 107
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| Legal basis and applicability of this part 107.
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| Amendments to Act and regulations.
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| How to read this part 107.
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Subpart B--DEFINITION OF TERMS USED IN PART 107
Subpart C--QUALIFYING FOR AN SBIC LICENSE
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| Organizing a Section 301(c) Licensee.
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| 1940 Act and 1980 Act Companies.
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| Special rules for a Section 301(d) Licensee owned by another Licensee.
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| Requirement for qualified management.
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| SBA approval of initial Management Expenses.
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| Management-ownership diversity requirement.
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| Special rules for Licensees formed as limited partnerships.
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| Adequate capital for Licensees.
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| Minimum capital requirements for Licensees.
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| Permitted sources of Private Capital for Licensees.
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| Limitations on including non-cash capital contributions in Private Capital.
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| Exclusion of stock options issued by Licensee from Management Expenses.
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| License application form and fee.
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Subpart D--CHANGES IN OWNERSHIP, CONTROL, OR STRUCTURE OF LICENSEE; TRANSFER OF LICENSE
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| Changes in ownership of 10 percent or more of Licensee but no change of Control.
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| Changes in Control of Licensee (through change in ownership or otherwise).
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| Prohibition on exercise of ownership or Control rights in Licensee before SBA approval.
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| Notification to SBA of transactions that may change ownership or Control.
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| Standards governing prior SBA approval for a proposed transfer of Control.
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| Notification to SBA of pledge of Licensee's shares.
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| Restrictions on Common Control or ownership of two (or more) Licensees.
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| SBA approval of merger, consolidation, or reorganization of Licensee.
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Subpart E--MANAGING THE OPERATIONS OF A LICENSEE
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| Lawful operations under the Act.
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| Identification as a Licensee.
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| Representations to the public.
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| Licensee's adoption of an approved valuation policy.
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| Equipment and office requirements.
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| Safeguarding Licensee's assets/Internal controls.
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| Violations based on false filings and nonperformance of agreements with SBA.
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| Employment of SBA officials.
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| SBA approval of Licensee's Investment Adviser/Manager.
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| Management Expenses of a Licensee.
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| Restrictions on investments of idle funds by leveraged Licensees.
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| Prior approval of secured third-party debt of leveraged Licensees.
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| Subordination of SBA's creditor position.
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| Restrictions on third-party debt of issuers of Participating Securities.
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| Voluntary decrease in Licensee's Regulatory Capital.
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| Licensee's requirement to maintain active operations.
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Subpart F--RECORDKEEPING, REPORTING, AND EXAMINATION REQUIREMENTS FOR LICENSEES
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| General requirement for Licensee to maintain and preserve records.
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| Required certifications for Loans and Investments.
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| Requirements to obtain information from Portfolio Concerns.
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| Requirement for Licensees to file financial statements with SBA (Form 468).
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| Requirement to file Portfolio Financing Reports (SBA Form 1031).
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| Requirement to report portfolio valuations to SBA.
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| Other items required to be filed by Licensee with SBA.
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| Application for exemption from civil penalty for late filing of reports.
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| Reporting changes in Licensee not subject to prior SBA approval.
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| Responsibilities of Licensee during examination.
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Subpart G--FINANCING OF SMALL BUSINESSES BY LICENSEES
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| Compliance with size standards in part 121 of this chapter as a condition of Assistance.
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| Requirement to finance smaller enterprises.
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| Small Businesses that may be ineligible for financing.
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| Financings which constitute conflicts of interest.
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| Portfolio diversification (''overline'' limitation).
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| Conditions for financing a change of ownership of a Small Business.
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| How a change in size or activity of a Portfolio Concern affects the Licensee and the Portfolio Concern.
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| Financings in the form of Equity Securities.
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| Financings in the form of Loans.
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| Financings in the form of Debt Securities.
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| Financings in the form of guarantees.
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| Purchasing securities from an underwriter or other third party.
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| Minimum duration/term of financing.
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| Exceptions to minimum duration/term of Financing.
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| Maximum term of Financing.
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| Maximum rate of amortization on Loans and Debt Securities.
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| Restrictions on redemption of Equity Securities.
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| Interest rate ceiling and limitations on fees charged to Small Businesses (''Cost of Money'').
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| Financing fees and expense reimbursements a Licensee may receive from a Small Business.
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| Control of a Small Business by a Licensee.
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| Assets acquired in liquidation of Portfolio securities.
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| Disposition of assets to Licensee's Associates or to competitors of Portfolio Concern.
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| Management fees for services provided to a Small Business by Licensee or its Associate.
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Subpart H--NON-LEVERAGED LICENSEES--EXCEPTIONS TO REGULATIONS
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| Licensees without Leverage--exceptions to the regulations.
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Subpart I--SBA FINANCIAL ASSISTANCE FOR LICENSEES (LEVERAGE)
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| Types of Leverage and application procedures.
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| General eligibility requirements for Leverage.
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| Leverage fees and additional charges payable by Licensee.
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| Licensee's acceptance of SBA remedies under 107.1800 through 107.1820.
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| Maximum amount of Leverage for a Section 301(c) Licensee.
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| Maximum amount of Leverage for a Section 301(d) Licensee.
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| Maximum amount of Participating Securities for any Licensee.
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| SBA's Leverage commitment to a Licensee--application procedure, amount, and term.
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| Payment of leverage fee upon receipt of commitment.
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| Requirement for Licensee to file quarterly financial statements.
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| Draw-downs by Licensee under SBA's Leverage commitment.
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| Funding of Licensee's draw request through sale to short-term investor.
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| Dividends or partnership distributions on 4 percent Preferred Securities.
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| Requirement to redeem 4 percent Preferred Securities.
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| Articles requirements for 4 percent Preferred Securities.
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| Redeeming 4 percent Preferred Securities with proceeds of non-subsidized Debentures.
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| Three percent preferred stock issued before November 21, 1989.
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| Optional redemption of Preferred Securities.
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| General description of Participating Securities.
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| Liquidity requirements for Licensees issuing Participating Securities.
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| How a Licensee computes Earmarked Profit (Loss).
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| How a Licensee computes and allocates Prioritized Payments to SBA.
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| How a Licensee computes SBA's Profit Participation.
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| Distributions by Licensee--Prioritized Payments and Adjustments.
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| Distributions by Licensee--permitted ''tax Distributions'' to private investors and SBA.
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| Distributions by Licensee--required Distributions to private investors and SBA.
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| Distributions by Licensee--optional Distribution to private investors and SBA.
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| Distributions on other than Payment Dates.
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| Special rules for In-Kind Distributions by Licensees.
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| Exchange of Debentures for Participating Securities.
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| Special rules for companies licensed on or before March 31, 1993.
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| SBA authority to issue and guarantee Trust Certificates.
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| Effect of prepayment or early redemption of Leverage on a Trust Certificate.
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| Functions of agents, including Central Registration Agent, Selling Agent and Fiscal Agent.
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| SBA regulation of Brokers and Dealers and disclosure to purchasers of Leverage or Trust Certificates.
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| SBA access to records of the CRA, Brokers, Dealers and Pool or Trust assemblers.
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| Transfer by SBA of its interest in Licensee's Leverage security.
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| SBA authority to collect or compromise its claims.
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| Characteristics of SBA's guarantee.
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Subpart J--LICENSEE'S NONCOMPLIANCE WITH TERMS OF LEVERAGE
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| Licensee's agreement to terms and conditions in 107.1810 and 107.1820.
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| Events of default and SBA's remedies for Licensee's noncompliance with terms of Debentures.
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| Conditions affecting issuers of Preferred Securities and/or Participating Securities.
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| Licensee's Capital Impairment--definition and general requirements.
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| Computation of Licensee's Capital Impairment Percentage.
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| Exceptions to Capital Impairment provisions for Licensees with outstanding Participating Securities.
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Subpart K--ENDING OPERATIONS AS A LICENSEE
Subpart L--MISCELLANEOUS
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| Non-waiver of SBA's rights or terms of Leverage security.
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| Licensee's application for exemption from a regulation in this part 107.
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| Effect of changes in this part 107 on transactions previously consummated.
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