Subpart A - Introduction to Part 107

§ 107.20 - Legal basis and applicability of this part 107.

§ 107.25 - Severability.

§ 107.30 - Amendments to Act and regulations.

§ 107.40 - How to read this part 107.

Subpart B - Definition of Terms Used in Part 107

§ 107.50 - Definition of terms.

Subpart C - Qualifying for an SBIC License

Applying for an SBIC License

§ 107.300 - License application form and fee.

§ 107.305 - Evaluation of license applicants.

§ 107.310 - When and how to apply for licensing as an Early Stage SBIC.

§ 107.320 - Leverage portfolio diversification.

Capitalizing an SBIC

§ 107.200 - Adequate capital for Licensees.

§ 107.210 - Minimum capital requirements for Licensees.

§ 107.220 - Special minimum capital requirements for Licensees issuing Leverage.

§ 107.230 - Permitted sources of Private Capital for Licensees.

§ 107.240 - Limitations on including non-cash capital contributions in Private Capital.

§ 107.250 - Exclusion of stock options issued by Licensee from Management Expenses.

Organizing an SBIC

§ 107.100 - Organizing a Section 301(c) Licensee.

§ 107.110 - Organizing a Section 301(d) Licensee.

§ 107.115 - 1940 Act and 1980 Act Companies.

§ 107.120 - Special rules for a Section 301(d) Licensee owned by another Licensee.

§ 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.

Subpart D - Changes in Ownership, Control, or Structure of Licensee; Transfer of License

Change in Structure of Licensee

§ 107.470 - SBA approval of merger, consolidation, or reorganization of Licensee.

Changes in Control or Ownership of Licensee

§ 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.

Restrictions on Common Control or Ownership of Two or More Licensees

§ 107.460 - Restrictions on Common Control or ownership of two (or more) Licensees.

Transfer of License

§ 107.475 - Transfer of license.

Subpart E - Managing the Operations of a Licensee

Management and Compensation

§ 107.510 - SBA approval of Licensee's Investment Adviser/Manager.

§ 107.520 - Management Expenses of a Licensee.

Distributions and Reductions in Regulatory Capital

§ 107.585 - Distributions and reductions in Regulatory Capital.

Voluntary Decrease in Licensee'S Regulatory Capital

Requirement to Conduct Active Investment Operations

§ 107.590 - Licensee's requirement to maintain active operations.

Cash Management by a Licensee

§ 107.530 - Restrictions on investments of idle funds by leveraged Licensees.

Borrowing by Licensees from Non-SBA Sources

§ 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.

§ 107.570 - [Reserved]

General Requirements

§ 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.

§ 107.505 - Facsimile requirement.

§ 107.506 - Safeguarding Licensee's assets/Internal controls.

§ 107.507 - Violations based on false filings and nonperformance of agreements with SBA.

§ 107.508 - Accessible office.

§ 107.509 - Employment of SBA officials.

Subpart F - Recordkeeping, Reporting, and Examination Requirements for Licensees

Examinations of Licensees by SBA for Regulatory Compliance

§ 107.690 - Examinations.

§ 107.691 - Responsibilities of Licensee during examination.

§ 107.692 - Examination fees.

Recordkeeping 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.

Reporting Requirements for Licensees

§ 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.

Subpart G - Financing of Small Businesses by Licensees

Structuring Licensee'S Financing of an Eligible Small Business: Terms and Conditions of Financing

§ 107.830 - Minimum duration/term of financing.

§ 107.835 - Exceptions to minimum duration/term of Financing.

§ 107.840 - Maximum term of Financing.

§ 107.845 - Maximum rate of amortization on Loans and Debt Securities.

§ 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.

Management Services and Fees

§ 107.900 - Management fees for services provided to a Small Business by Licensee or its Associate.

Determining the Eligibility of a Small Business for SBIC Financing

§ 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.

Limitations on Disposition of Assets

§ 107.885 - Disposition of assets to Licensee's Associates or to competitors of Portfolio Concern.

Structuring Licensee'S Financing of Eligible Small Businesses: Types of Financing

§ 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.

Subpart H - Non-leveraged Licensees—Exceptions to Regulations

§ 107.1000 - Non-leveraged Licensees—exceptions to this part.

Subpart I - SBA Financial Assistance for Licensees (Leverage)

Participating Securities Leverage

§ 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.

§ 107.1585 - Exchange of Debentures for Participating Securities.

§ 107.1590 - Special rules for companies licensed on or before March 31, 1993.

Exchange of Outstanding Debentures for Participating or Preferred Securities—Section 301(d) Licensees

§ 107.1350 - Exchange by Section 301(d) Licensee of Debentures for Preferred or Participating Securities.

Conditional Commitments by SBA to Reserve Leverage for a Licensee

§ 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.

General Information About Obtaining Leverage

§ 107.1100 - Types of Leverage and application procedures.

§ 107.1110 - How to apply for Leverage.

§ 107.1120 - General eligibility requirements for Leverage.

§ 107.1130 - Leverage fees and Annual Charges.

§ 107.1140 - Licensee's acceptance of SBA remedies under §§ 107.1800 through 107.1820.

Preferred Securities Leverage - Section 301(D) Licensees

§ 107.1400 - Dividends or partnership distributions on 4 percent Preferred Securities.

§ 107.1410 - Requirement to redeem 4 percent Preferred Securities.

§ 107.1420 - Articles requirements for 4 percent Preferred Securities.

§ 107.1430 - Redeeming 4 percent Preferred Securities with proceeds of non-subsidized Debentures.

§ 107.1440 - Three percent preferred stock issued before November 21, 1989.

§ 107.1450 - Optional redemption of Preferred Securities.

Special Rules for Leverage Issued by an Early Stage SBIC

§ 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.

Miscellaneous

§ 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.

Maximum Amount of Leverage for Which a Licensee Is Eligible

§ 107.1150 - Maximum amount of Leverage.

§ 107.1160 - Maximum amount of Leverage for a Section 301(d) Licensee.

§ 107.1170 - Maximum amount of Participating Securities for any Licensee.

Preferred Securities Leverage—Section 301(d) Licensees

Funding Leverage by Use of SBA-Guaranteed Trust Certificates (“Tcs”)

§ 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.

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.

Computation of Licensee'S Capital Impairment

§ 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.

Subpart K - Ending Operations as a Licensee

§ 107.1900 - Surrender of license.

Subpart L - Miscellaneous

§ 107.1910 - Non-waiver of SBA's rights or terms of Leverage security.

§ 107.1920 - Licensee's application for exemption from a regulation in this part 107.

§ 107.1930 - Effect of changes in this part 107 on transactions previously consummated.