Licensee's requirement to maintain active operations.

CFR · 2024-01-01 · US · Title 13

(a) (1) During the eighteen months preceding your most recent fiscal year end, you made Financings totaling at least 20 percent of your Regulatory Capital; or (2) Your idle funds did not exceed 20 percent of your total assets (at cost) at your most recent fiscal year end. (b) (1) Your excess idle funds are the result of the receipt, within the previous nine months, of realized gains, repayments, additional capital contributions, or Leverage. (2) It is necessary for you to maintain excess idle funds to conduct your operations because: (i) Your unfunded commitments from investors are no more than 20 percent of your Regulatory Capital; and (ii) You cannot receive additional Leverage, solely because SBA has insufficient funds available. (3) You have not made sufficient Financings because of a lack of available funds, evidenced by Loans and Investments (at cost) equal to at least 90 percent of your Combined Capital as of your most recent fiscal year end. (4) You have not made sufficient Financings solely because SBA has restricted your ability to make investments. (c) (1) The remaining number of years you expect to operate. (2) For each of your Loans and Investments, the expected liquidation date and anticipated proceeds. (3) The timing of your repayment of obligations to SBA. (4) The timing and amount of any planned reductions in your Management Expenses. (d) (2)

official document · source cfr-2024 · id 13:§ 107.590