e-CFR data is current as of January 14, 2021
TITLE 13—Business Credit and Assistance
CHAPTER I—SMALL BUSINESS ADMINISTRATION PART 108—NEW MARKETS VENTURE CAPITAL (“NMVC”) PROGRAM
Subpart A—INTRODUCTION TO PART 108
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| Description of the New Markets Venture Capital Program. |
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| Legal basis and applicability of this part 108. |
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| Amendments to Act and regulations. |
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| How to read this part 108. |
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Subpart B—DEFINITION OF TERMS USED IN THIS PART 108
Subpart C—QUALIFICATIONS FOR THE NMVC PROGRAM
Organizing a NMVC Company
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| Economic development primary mission. |
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| Identified Low Income Geographic Areas. |
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| SBA approval of initial Management Expenses. |
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| Management and ownership diversity requirement. |
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| Special rules for NMVC Companies formed as limited partnerships. |
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Capitalizing a NMVC Company
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| Adequate capital for NMVC Companies. |
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| Minimum capital requirements for NMVC Companies. |
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| Private Capital for NMVC Companies. |
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Subpart D—APPLICATION AND APPROVAL PROCESS FOR NMVC COMPANY DESIGNATION
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| When and how to apply for designation as a NMVC Company. |
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| Contents of comprehensive business plan. |
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Subpart E—EVALUATION AND SELECTION OF NMVC COMPANIES
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| Evaluation and selection—general. |
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| Eligibility and completeness. |
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| Final approval as a NMVC Company. |
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Subpart F—CHANGES IN OWNERSHIP, STRUCTURE, OR CONTROL
Changes in Control or Ownership of NMVC Company
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| Changes in ownership of 10 percent or more of NMVC Company but no change of Control. |
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| Changes in Control of NMVC Company (through change in ownership or otherwise). |
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| Prohibition on exercise of ownership or Control rights in NMVC Company 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 NMVC Company's shares. |
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Restrictions on Common Control or Ownership of Two or More NMVC Companies
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| Restrictions on Common Control or ownership of two (or more) NMVC Companies. |
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Change in Structure of NMVC Company
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| SBA approval of merger, consolidation, or reorganization of NMVC Company. |
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Subpart G—MANAGING THE OPERATIONS OF A NMVC COMPANY
General Requirements
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| Lawful operations under the Act. |
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| Representations to the public. |
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| NMVC Company's adoption of an approved valuation policy. |
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| Equipment and office requirements. |
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| Safeguarding the NMVC Company'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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Management and Compensation
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| SBA approval of NMVC Company's Investment Adviser/Manager. |
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| Management Expenses of a NMVC Company. |
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Cash Management by a NMVC Company
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| Restrictions on investments of idle funds by NMVC Companies. |
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Borrowing by NMVC Companies From Non-SBA Sources
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| Prior approval of secured third-party debt of NMVC companies. |
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Voluntary Decrease in Regulatory Capital
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| Voluntary decrease in NMVC Company's Regulatory Capital. |
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Subpart H—RECORDKEEPING, REPORTING, AND EXAMINATION REQUIREMENTS FOR NMVC COMPANIES
Recordkeeping Requirements for NMVC Companies
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| General requirement for NMVC Company 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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Reporting Requirements for NMVC Companies
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| Requirement for NMVC companies to file financial statements and supplementary information with SBA (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 NMVC Company with SBA. |
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| Reporting changes in NMVC Company not subject to prior SBA approval. |
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Examinations of NMVC Companies by SBA for Regulatory Compliance
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| Responsibilities of NMVC Company during examination. |
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Subpart I—FINANCING OF SMALL BUSINESSES BY NMVC COMPANIES
Determining the Eligibility of a Small Business for NMVC Financing
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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 Low-Income 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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| How a change in size or activity of a Portfolio Concern affects the NMVC Company and the Portfolio Concern. |
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Structuring NMVC Company's Financing of Eligible Small Businesses
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| Financings in the form of equity interests. |
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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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Limitations on Disposition of Assets
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| Disposition of assets to NMVC Company's Associates. |
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Management Services and Fees
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| Fees for management services provided to a Small Business by a NMVC Company or its Associate. |
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Subpart J—SBA FINANCIAL ASSISTANCE FOR NMVC COMPANIES (LEVERAGE)
General Information About Obtaining Leverage
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| Type of Leverage and application procedures. |
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| General eligibility requirement for Leverage. |
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| Leverage fees payable by NMVC Company. |
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| NMVC Company's acceptance of SBA remedies under §108.1810. |
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Maximum Amount of Leverage for Which a NMVC Company Is Eligible
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| Maximum amount of Leverage for a NMVC Company. |
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Conditional Commitments by SBA To Reserve Leverage for a NMVC Company
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| SBA's Leverage commitment to a NMVC Company—application procedure, amount, and term. |
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| Requirement for NMVC Company to file financial statements at the time of request for a draw. |
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| Draw-downs by NMVC Company under SBA's Leverage commitment. |
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| Funding of NMVC Company's draw request through sale to third-party. |
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Funding Leverage by use of SBA Guaranteed Trust Certificates (“TCs”)
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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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Miscellaneous
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| Transfer by SBA of its interest in a NMVC Company'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 K—NMVC COMPANY'S NONCOMPLIANCE WITH TERMS OF LEVERAGE
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| Events of default and SBA's remedies for NMVC Company's noncompliance with terms of Debentures. |
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Computation of NMVC Company's Capital Impairment
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| NMVC Company's Capital Impairment definition and general requirements. |
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| Computation of NMVC Company's Capital Impairment Percentage. |
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Subpart L—ENDING OPERATIONS AS A NMVC COMPANY
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| Termination of participation as a NMVC Company. |
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Subpart M—MISCELLANEOUS
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| Non-waiver of SBA's rights or terms of Leverage security. |
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| NMVC Company's application for exemption from a regulation in this part 108. |
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| Effect of changes in this part 108 on transactions previously consummated. |
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| Procedures for designation of additional Low-Income Geographic Areas |
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Subpart N—REQUIREMENTS AND PROCEDURES FOR OPERATIONAL ASSISTANCE GRANTS TO NMVC COMPANIES AND SSBICS
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| Operational Assistance Grants to NMVC Companies and SSBICs. |
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| When and how SSBICs may apply for Operational Assistance grants. |
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| Eligibility of SSBICs to apply for Operational Assistance grants. |
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| Grant issuance fee for SSBICs. |
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| Contents of application submitted by SSBICs. |
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| Contents of plan submitted by SSBICs. |
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| Evaluation and selection of SSBICs. |
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| Restrictions on use of Operational Assistance grant funds. |
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| Amount of Operational Assistance grant. |
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| Reporting and recordkeeping requirements. |
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