Portfolio diversification (“overline” limitation).

CFR · 2024-01-01 · US · Title 13

(a) (1) Your Regulatory Capital as of the date of the Financing or Commitment; plus (2) Any Distribution(s) you made under § 107.1570(b), during the five years preceding the date of the Financing or Commitment, which reduced your Regulatory Capital; plus (3) Any Distribution(s) you made under § 107.585, during the five years preceding the date of the Financing or Commitment, which reduced your Regulatory Capital by no more than two percent or which SBA approves for inclusion in the sum determined in this paragraph (a). (b) (1) 20 percent if the plan contemplates one tier of Leverage. (2) 25 percent if the plan contemplates 1.5 tiers of Leverage. (c) Outstanding Financings. For the purposes of paragraphs (a) and (b) of this section, you must measure each outstanding Financing at its original cost (including any amount of the Financing that was previously written off).

official document · source cfr-2024 · id 13:§ 107.740