§ 107.440. Standards governing prior SBA approval for a proposed transfer of Control.
125 words·~1 min read·
/us/cfr/t13/s§ 107.440·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
SBA approval is contingent upon full disclosure of the real parties in interest, the source of funds for the new owners' interest, and other data requested by SBA. As a condition of approving a proposed transfer of control, SBA may:
(a)Require an increase in your Regulatory Capital;
(b)Require the new owners or the transferee's Control Person(s) to assume, in writing, personal liability for your Leverage, effective only in the event of their direct or indirect participation in any transfer of Control not approved by SBA; or
(c)Require compliance with any other conditions set by SBA, including compliance with the requirements for minimum capital and management-ownership diversity as in effect at such time for new license applicants. \[61 FR 3189, Jan. 31, 1996\]