What are the minimum capital requirements for SBLCs?

CFR · 2024-01-01 · US · Title 13

(a) (2) Any SBLC approved on or after January 4, 2021, including in the event of a change of ownership or control, must maintain the minimum capital requirement set forth in paragraph (a)(1) of this section. (3) Unless subject to paragraph (a)(1) or (2) of this section, an SBLC must comply with the minimum capital requirements that were in effect on January 3, 2021. (4) A Community Advantage SBLC must maintain a minimum amount of capital as determined at the discretion of the Administrator in consultation with SBA's Associate Administrator for the Office of Capital Access (AA/OCA), or their designee(s). The minimum capital amount as published in Loan Program Requirements will ensure sufficient risk protection for SBA and lenders while not burdening smaller lenders with large capital requirements. (5) Community Advantage SBLCs must maintain a loan loss reserve account as determined at the discretion of the Administrator in consultation with SBA's Associate Administrator for the Office of Capital Access (AA/OCA), or their designee(s) as published in Loan Program Requirements. (b) (1) Common stock; (2) Preferred stock that is noncumulative as to dividends and does not have a maturity date; (3) Unrestricted net assets (for non-profit corporations); (4) Additional paid-in capital representing amounts paid for stock in excess of the par value; (5) Retained earnings of the business; and/or (6) For limited liability companies and limited partnerships, capital contributions must not b

official document · source cfr-2024 · id 13:§ 120.471