Management-ownership diversification requirement.

CFR · 2024-01-01 · US · Title 13

(a) (1) In order to obtain an SBIC license (unless you do not plan to obtain Leverage), (2) If at the time you were licensed you did not plan to obtain Leverage, but you now wish to be eligible for Leverage, or (3) If SBA so requires as a condition of approval of your transfer of Control under § 107.440. (b) (2) (i) The degree to which the managers of the firm are unrelated to and unaffiliated with the investors in the firm or non-profit entity. (ii) Whether the managers of the firm are authorized and motivated to make investments that, in their independent judgment, are likely to produce significant returns to all investors in the firm or non-profit entity. (iii) Whether the firm or non-profit entity serving as the management company of a for-profit SBIC benefits from the use of the SBIC through the financial performance of the SBIC. (iv) Other related factors. (c) (i) Entities whose overall activities are regulated and periodically examined by state, Federal or other governmental authorities satisfactory to SBA; (ii) Entities listed on the New York Stock Exchange; (iii) Entities that are publicly-traded and that meet both the minimum numerical listing standards and the corporate governance listing standards of the New York Stock Exchange; (iv) Public or private employee pension funds; (v) Trusts, foundations, or endowments, but only if exempt from Federal income taxation; and (vi) Other Institutional Investors satisfactory to SBA. (2) (d) (2) (e) (1) Notify SBA within 10 da

official document · source cfr-2024 · id 13:§ 107.150