Special rules for companies licensed on or before March 31, 1993.

CFR · 2024-01-01 · US · Title 13

This section applies to companies licensed on or before March 31, 1993 that apply to issue Participating Securities. (a) (1) The proceeds of your first issuance of Participating Securities are not used to refinance outstanding Debentures (see § 107.1585(a)). SBA will consider payment or prepayment of any outstanding Debenture to be a refinancing unless you demonstrate to SBA's satisfaction that you can pay the Debenture principal without relying on the proceeds of the Participating Securities. (2) SBA, in its sole discretion, approves the exclusion. (b) (c) (1) For each of your Loans and Investments, you must submit: (i) The most recent annual report (or fiscal year-end financial statements) and the most recent interim financial statements of the Small Business; and (ii) Your valuation reports on the Small Business, prepared as of the end of each of your last three fiscal years. If you have applied for Participating Securities on the basis of interim financial statements, you must also submit a valuation report as of your interim financial statement date. (2) If you have negative Undistributed Net Realized Earnings and/or a net Unrealized Loss on Securities Held, SBA may require you to undergo a quasi-reorganization in accordance with generally accepted accounting principles. (3) If your financial statements accompanying the Participating Securities application are for an interim period, you must have your SBA-approved independent public accountant perform a limited-scope aud

official document · source cfr-2024 · id 13:§ 107.1590