Permitted sources of Private Capital for Licensees.

CFR · 2024-01-01 · US · Title 13

Private Capital means the contributed capital of a Licensee, plus unfunded binding commitments by Institutional Investors (including commitments evidenced by a promissory note) to contribute capital to a Licensee. (a) (b) (1) Funds borrowed by a Licensee from any source. (2) Funds obtained through the issuance of Leverage. (3) Funds obtained directly or indirectly from any Federal, State, or local government agency or instrumentality, except for: (i) Funds invested by a public pension fund; (ii) Funds obtained from the business revenues (excluding any governmental appropriation) of any federally chartered or government-sponsored corporation established before October 1, 1987, to the extent that such revenues are reflected in the retained earnings of the corporation; and (iii) “Qualified Non-private Funds” as defined in paragraph (d) of this section. (4) Any portion of a commitment from an Institutional Investor with a net worth of less than $10 million that exceeds 10 percent of such Institutional Investor's net worth and is not backed by a letter of credit from a State or National bank acceptable to SBA. (c) (d) (1) Funds directly or indirectly invested in any Licensee on or before August 16, 1982 by any Federal agency except SBA, under a statute explicitly mandating the inclusion of such funds in “Private Capital”; (2) Funds directly or indirectly invested in any Licensee by any Federal agency under a statute that is enacted after September 4, 1992, explicitly mandating the

official document · source cfr-2024 · id 13:§ 107.230