Code of Federal Regulations (Last Updated: May 6, 2024) |
Title 13 - Business Credit and Assistance |
Chapter I - Small Business Administration |
Part 107 - Small Business Investment Companies |
Subpart G - Financing of Small Businesses by Licensees |
Structuring Licensee'S Financing of Eligible Small Businesses: Types of Financing |
§ 107.800 - Financings in the form of Equity Securities.
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§ 107.800 Financings in the form of Equity Securities.
(a) You may purchase the Equity Securities of a Small Business. You may not, inadvertently or otherwise:
(1) Become a general partner in any unincorporated business; or
(2) Become jointly or severally liable for any obligations of an unincorporated business.
(b) Definition. Equity Securities means stock of any class in a corporation, stock options, warrants, limited partnership interests in a limited partnership, membership interests in a limited liability company, or joint venture interests. If the Financing agreement contains debt-type acceleration provisions or includes redemption provisions, other than those permitted under § 107.850, the security will be considered a Debt Security for purposes of § 107.855 and § 107.1150(c)(1).
[61 FR 3189, Jan. 31, 1996, as amended at 74 FR 33915, July 14, 2009]