§ 107.210. Minimum capital requirements for Licensees.

265 words·~1 min read·/us/cfr/t13/s§ 107.210·

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(a)Companies licensed on or after October 1, 1996. A company licensed on or after October 1, 1996, must have Leverageable Capital of at least \$2,500,000 and must meet the applicable minimum Regulatory Capital requirement in this paragraph (a), unless lower Leverageable Capital and Regulatory Capital amounts are approved by SBA as part of a Wind-down Plan in accordance with § 107.590(c):

(1)Licensees other than Early Stage SBICs. Except for Early Stage SBICs, a Licensee must have Regulatory Capital of at least \$5,000,000. As an exception to the general rule in this paragraph (a)(1), SBA in its sole discretion and based on a showing of special circumstances and good cause, which includes applicants that are headquartered in an Underlicensed State, may license an applicant with Regulatory Capital of at least \$3,000,000, but only if the applicant:

(i)Has satisfied all licensing standards and requirements except the minimum capital requirement, as determined solely by SBA;

(ii)Has a viable business plan reasonably projecting profitable operations; and

(iii)Has a reasonable timetable for achieving Regulatory Capital of at least \$5,000,000.

(2)Early Stage SBICs. An Early Stage SBIC must have Regulatory Capital of at least \$20 million.

(b)Companies licensed before October 1, 1996. A company licensed before October 1, 1996 must meet the minimum capital requirements applicable to such company, as required by the regulations in effect on September 30, 1996. See § 107.1120(c)(2) for Leverage eligibility requirements. \[63 FR 5866, Feb. 5, 1998, as amended at 77 FR 25051, Apr. 27, 2012; 82 FR 39340, Aug. 18, 2017; 88 FR 46007, July 18, 2023\]

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§ 107.210

Minimum capital requirements for Licensees.

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