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

(a) Participating Securities. You must have Regulatory Capital of at least $10,000,000 in order to apply for Participating Securities, unless you demonstrate to SBA's satisfaction that you can be financially viable over the long term with a lower amount. You are not permitted under any circumstances to apply for Participating Securities if your Regulatory Capital is less than $5,000,000.

(b) Debentures. If you are licensed after January 31, 1996, you must have Regulatory Capital of at least $5,000,000 in order to apply for Debentures, unless you demonstrate to SBA's satisfaction that you can be financially viable over the long term with a lower amount.

(c) Companies licensed before October 2, 1990. If § 107.210(c) applies to you and your Regulatory Capital (excluding commitments from investors) is below $2,500,000 (for a Section 301(c) Licensee) or $1,500,000 (for a Section 301(d) Licensee):

(1) You are eligible for Leverage (other than refinancing) only if you can demonstrate to SBA's satisfaction that you have been profitable for three out of your last four fiscal years before applying for Leverage and, on the average, have been profitable for all such fiscal years.

(2) Even if you do not satisfy paragraph (c)(1) of this section, you may apply for Leverage needed to refinance any Debenture outstanding on October 2, 1990, one time only, for a term to be determined by SBA.