How a Licensee computes SBA's Profit Participation.

CFR · 2024-01-01 · US · Title 13

This section tells you how to compute SBA's Profit Participation. Profit Participation is included in the Distributions you make to SBA under §§ 107.1550 and 107.1560. (a) (b) (c) (1) If the Base computed as of the end of your previous fiscal year (your “Previous Base”) was less than zero, your Unused Loss equals your Previous Base. (2) If your Previous Base was zero or greater, your Unused Loss equals zero, with the following exception: If you made an interim Distribution of Profit Participation during your previous fiscal year, and your Previous Base was lower than the interim Base on which your Distribution was computed, then your Unused Loss equals the difference (3) If you had no Participating Securities outstanding as of the end of your last fiscal year, you may request SBA's approval to treat your Undistributed Net Realized Loss, as reported on SBA Form 468 for that year, as Unused Loss. If you did not file SBA Form 468 because you were not yet licensed as of the end of your last fiscal year, you may request SBA's approval to treat pre-licensing losses as Unused Loss. (d) (e) (2) (i) Divide the highest dollar amount of Participating Securities you have ever had outstanding by your increased Leverageable Capital. (ii) If the result in paragraph (e)(2)(i) of this section is lower than your PLC ratio currently in effect, such result will become your new PLC ratio. (f) (g) (1) (2) (i) Compute an average of all such Treasury Rates, weighted to reflect the dollar amount of e

official document · source cfr-2024 · id 13:§ 107.1530