Title 13

PART 108

Part 108 - New Markets Venture Capital (“nmvc”) Program

PART 108 - NEW MARKETS VENTURE CAPITAL (“NMVC”) PROGRAM Authority:15 U.S.C. 689-689q. Source:66 FR 28609, May 23, 2001, unless otherwise noted.

13:1.0.1.1.8.1SUBPART A
Subpart A - Introduction to Part 108
13:1.0.1.1.8.1.88.1SECTION 108.10
   108.10 Description of the New Markets Venture Capital Program.
13:1.0.1.1.8.1.88.2SECTION 108.20
   108.20 Legal basis and applicability of this part 108.
13:1.0.1.1.8.1.88.3SECTION 108.30
   108.30 Amendments to Act and regulations.
13:1.0.1.1.8.1.88.4SECTION 108.40
   108.40 How to read this part 108.
13:1.0.1.1.8.2SUBPART B
Subpart B - Definition of Terms Used in This Part 108
13:1.0.1.1.8.2.88.1SECTION 108.50
   108.50 Definition of terms.
13:1.0.1.1.8.3SUBPART C
Subpart C - Qualifications for the NMVC Program
13:1.0.1.1.8.3.88SUBJGRP 88
   Organizing a NMVC Company
13:1.0.1.1.8.3.88.1SECTION 108.100
   108.100 Business form.
13:1.0.1.1.8.3.88.2SECTION 108.110
   108.110 Qualified management.
13:1.0.1.1.8.3.88.3SECTION 108.120
   108.120 Economic development primary mission.
13:1.0.1.1.8.3.88.4SECTION 108.130
   108.130 Identified Low Income Geographic Areas.
13:1.0.1.1.8.3.88.5SECTION 108.140
   108.140 SBA approval of initial Management Expenses.
13:1.0.1.1.8.3.88.6SECTION 108.150
   108.150 Management and ownership diversity requirement.
13:1.0.1.1.8.3.88.7SECTION 108.160
   108.160 Special rules for NMVC Companies formed as limited partnerships.
13:1.0.1.1.8.3.89SUBJGRP 89
   Capitalizing a NMVC Company
13:1.0.1.1.8.3.89.8SECTION 108.200
   108.200 Adequate capital for NMVC Companies.
13:1.0.1.1.8.3.89.9SECTION 108.210
   108.210 Minimum capital requirements for NMVC Companies.
13:1.0.1.1.8.3.89.10SECTION 108.230
   108.230 Private Capital for NMVC Companies.
13:1.0.1.1.8.4SUBPART D
Subpart D - Application and Approval Process for NMVC Company Designation
13:1.0.1.1.8.4.90.1SECTION 108.300
   108.300 When and how to apply for designation as a NMVC Company.
13:1.0.1.1.8.4.90.2SECTION 108.310
   108.310 Contents of application.
13:1.0.1.1.8.4.90.3SECTION 108.320
   108.320 Contents of comprehensive business plan.
13:1.0.1.1.8.4.90.4SECTION 108.330
   108.330 Grant issuance fee.
13:1.0.1.1.8.5SUBPART E
Subpart E - Evaluation and Selection of NMVC Companies
13:1.0.1.1.8.5.90.1SECTION 108.340
   108.340 Evaluation and selection - general.
13:1.0.1.1.8.5.90.2SECTION 108.350
   108.350 Eligibility and completeness.
13:1.0.1.1.8.5.90.3SECTION 108.360
   108.360 Evaluation criteria.
13:1.0.1.1.8.5.90.4SECTION 108.370
   108.370 Conditional approval.
13:1.0.1.1.8.5.90.5SECTION 108.380
   108.380 Final approval as a NMVC Company.
13:1.0.1.1.8.6SUBPART F
Subpart F - Changes in Ownership, Structure, or Control
13:1.0.1.1.8.6.90SUBJGRP 90
   Changes in Control or Ownership of NMVC Company
13:1.0.1.1.8.6.90.1SECTION 108.400
   108.400 Changes in ownership of 10 percent or more of NMVC Company but no change of Control.
13:1.0.1.1.8.6.90.2SECTION 108.410
   108.410 Changes in Control of NMVC Company (through change in ownership or otherwise).
13:1.0.1.1.8.6.90.3SECTION 108.420
   108.420 Prohibition on exercise of ownership or Control rights in NMVC Company before SBA approval.
13:1.0.1.1.8.6.90.4SECTION 108.430
   108.430 Notification to SBA of transactions that may change ownership or Control.
13:1.0.1.1.8.6.90.5SECTION 108.440
   108.440 Standards governing prior SBA approval for a proposed transfer of Control.
13:1.0.1.1.8.6.90.6SECTION 108.450
   108.450 Notification to SBA of pledge of NMVC Company's shares.
13:1.0.1.1.8.6.91SUBJGRP 91
   Restrictions on Common Control or Ownership of Two or More NMVC Companies
13:1.0.1.1.8.6.91.7SECTION 108.460
   108.460 Restrictions on Common Control or ownership of two (or more) NMVC Companies.
13:1.0.1.1.8.6.92SUBJGRP 92
   Change in Structure of NMVC Company
13:1.0.1.1.8.6.92.8SECTION 108.470
   108.470 SBA approval of merger, consolidation, or reorganization of NMVC Company.
13:1.0.1.1.8.7SUBPART G
Subpart G - Managing the Operations of a NMVC Company
13:1.0.1.1.8.7.93SUBJGRP 93
   General Requirements
13:1.0.1.1.8.7.93.1SECTION 108.500
   108.500 Lawful operations under the Act.
13:1.0.1.1.8.7.93.2SECTION 108.502
   108.502 Representations to the public.
13:1.0.1.1.8.7.93.3SECTION 108.503
   108.503 NMVC Company's adoption of an approved valuation policy.
13:1.0.1.1.8.7.93.4SECTION 108.504
   108.504 Equipment and office requirements.
13:1.0.1.1.8.7.93.5SECTION 108.506
   108.506 Safeguarding the NMVC Company's assets/Internal controls.
13:1.0.1.1.8.7.93.6SECTION 108.507
   108.507 Violations based on false filings and nonperformance of agreements with SBA.
13:1.0.1.1.8.7.93.7SECTION 108.509
   108.509 Employment of SBA officials.
13:1.0.1.1.8.7.94SUBJGRP 94
   Management and Compensation
13:1.0.1.1.8.7.94.8SECTION 108.510
   108.510 SBA approval of NMVC Company's Investment Adviser/Manager.
13:1.0.1.1.8.7.94.9SECTION 108.520
   108.520 Management Expenses of a NMVC Company.
13:1.0.1.1.8.7.95SUBJGRP 95
   Cash Management by a NMVC Company
13:1.0.1.1.8.7.95.10SECTION 108.530
   108.530 Restrictions on investments of idle funds by NMVC Companies.
13:1.0.1.1.8.7.96SUBJGRP 96
   Borrowing by NMVC Companies From Non-SBA Sources
13:1.0.1.1.8.7.96.11SECTION 108.550
   108.550 Prior approval of secured third-party debt of NMVC companies.
13:1.0.1.1.8.7.97SUBJGRP 97
   Voluntary Decrease in Regulatory Capital
13:1.0.1.1.8.7.97.12SECTION 108.585
   108.585 Voluntary decrease in NMVC Company's Regulatory Capital.
13:1.0.1.1.8.8SUBPART H
Subpart H - Recordkeeping, Reporting, and Examination Requirements for NMVC Companies
13:1.0.1.1.8.8.98SUBJGRP 98
   Recordkeeping Requirements for NMVC Companies
13:1.0.1.1.8.8.98.1SECTION 108.600
   108.600 General requirement for NMVC Company to maintain and preserve records.
13:1.0.1.1.8.8.98.2SECTION 108.610
   108.610 Required certifications for Loans and Investments.
13:1.0.1.1.8.8.98.3SECTION 108.620
   108.620 Requirements to obtain information from Portfolio Concerns.
13:1.0.1.1.8.8.99SUBJGRP 99
   Reporting Requirements for NMVC Companies
13:1.0.1.1.8.8.99.4SECTION 108.630
   108.630 Requirement for NMVC companies to file financial statements and supplementary information with SBA (SBA Form 468).
13:1.0.1.1.8.8.99.5SECTION 108.640
   108.640 Requirement to file portfolio financing reports (SBA Form 1031).
13:1.0.1.1.8.8.99.6SECTION 108.650
   108.650 Requirement to report portfolio valuations to SBA.
13:1.0.1.1.8.8.99.7SECTION 108.660
   108.660 Other items required to be filed by NMVC Company with SBA.
13:1.0.1.1.8.8.99.8SECTION 108.680
   108.680 Reporting changes in NMVC Company not subject to prior SBA approval.
13:1.0.1.1.8.8.100SUBJGRP 100
   Examinations of NMVC Companies by SBA for Regulatory Compliance
13:1.0.1.1.8.8.100.9SECTION 108.690
   108.690 Examinations.
13:1.0.1.1.8.8.100.10SECTION 108.691
   108.691 Responsibilities of NMVC Company during examination.
13:1.0.1.1.8.8.100.11SECTION 108.692
   108.692 Examination fees.
13:1.0.1.1.8.9SUBPART I
Subpart I - Financing of Small Businesses by NMVC Companies
13:1.0.1.1.8.9.101SUBJGRP 101
   Determining the Eligibility of a Small Business for NMVC Financing
13:1.0.1.1.8.9.101.1SECTION 108.700
   108.700 Compliance with size standards in part 121 of this chapter as a condition of Assistance.
13:1.0.1.1.8.9.101.2SECTION 108.710
   108.710 Requirement to finance Low-Income Enterprises.
13:1.0.1.1.8.9.101.3SECTION 108.720
   108.720 Small Businesses that may be ineligible for financing.
13:1.0.1.1.8.9.101.4SECTION 108.730
   108.730 Financings which constitute conflicts of interest.
13:1.0.1.1.8.9.101.5SECTION 108.740
   108.740 Portfolio diversification (“overline” limitation).
13:1.0.1.1.8.9.101.6SECTION 108.760
   108.760 How a change in size or activity of a Portfolio Concern affects the NMVC Company and the Portfolio Concern.
13:1.0.1.1.8.9.102SUBJGRP 102
   Structuring NMVC Company's Financing of Eligible Small Businesses
13:1.0.1.1.8.9.102.7SECTION 108.800
   108.800 Financings in the form of equity interests.
13:1.0.1.1.8.9.102.8SECTION 108.820
   108.820 Financings in the form of guarantees.
13:1.0.1.1.8.9.102.9SECTION 108.825
   108.825 Purchasing securities from an underwriter or other third party.
13:1.0.1.1.8.9.103SUBJGRP 103
   Limitations on Disposition of Assets
13:1.0.1.1.8.9.103.10SECTION 108.885
   108.885 Disposition of assets to NMVC Company's Associates.
13:1.0.1.1.8.9.104SUBJGRP 104
   Management Services and Fees
13:1.0.1.1.8.9.104.11SECTION 108.900
   108.900 Fees for management services provided to a Small Business by a NMVC Company or its Associate.
13:1.0.1.1.8.10SUBPART J
Subpart J - SBA Financial Assistance for NMVC Companies (Leverage)
13:1.0.1.1.8.10.105SUBJGRP 105
   General Information About Obtaining Leverage
13:1.0.1.1.8.10.105.1SECTION 108.1100
   108.1100 Type of Leverage and application procedures.
13:1.0.1.1.8.10.105.2SECTION 108.1120
   108.1120 General eligibility requirement for Leverage.
13:1.0.1.1.8.10.105.3SECTION 108.1130
   108.1130 Leverage fees payable by NMVC Company.
13:1.0.1.1.8.10.105.4SECTION 108.1140
   108.1140 NMVC Company's acceptance of SBA remedies under § 108.1810.
13:1.0.1.1.8.10.106SUBJGRP 106
   Maximum Amount of Leverage for Which a NMVC Company Is Eligible
13:1.0.1.1.8.10.106.5SECTION 108.1150
   108.1150 Maximum amount of Leverage for a NMVC Company.
13:1.0.1.1.8.10.107SUBJGRP 107
   Conditional Commitments by SBA To Reserve Leverage for a NMVC Company
13:1.0.1.1.8.10.107.6SECTION 108.1200
   108.1200 SBA's Leverage commitment to a NMVC Company - application procedure, amount, and term.
13:1.0.1.1.8.10.107.7SECTION 108.1220
   108.1220 Requirement for NMVC Company to file financial statements at the time of request for a draw.
13:1.0.1.1.8.10.107.8SECTION 108.1230
   108.1230 Draw-downs by NMVC Company under SBA's Leverage commitment.
13:1.0.1.1.8.10.107.9SECTION 108.1240
   108.1240 Funding of NMVC Company's draw request through sale to third-party.
13:1.0.1.1.8.10.108SUBJGRP 108
   Funding Leverage by use of SBA Guaranteed Trust Certificates (“TCs”)
13:1.0.1.1.8.10.108.10SECTION 108.1600
   108.1600 SBA authority to issue and guarantee Trust Certificates.
13:1.0.1.1.8.10.108.11SECTION 108.1610
   108.1610 Effect of prepayment or early redemption of Leverage on a Trust Certificate.
13:1.0.1.1.8.10.108.12SECTION 108.1620
   108.1620 Functions of agents, including Central Registration Agent, Selling Agent and Fiscal Agent.
13:1.0.1.1.8.10.108.13SECTION 108.1630
   108.1630 SBA regulation of Brokers and Dealers and disclosure to purchasers of Leverage or Trust Certificates.
13:1.0.1.1.8.10.108.14SECTION 108.1640
   108.1640 SBA access to records of the CRA, Brokers, Dealers and Pool or Trust assemblers.
13:1.0.1.1.8.10.109SUBJGRP 109
   Miscellaneous
13:1.0.1.1.8.10.109.15SECTION 108.1700
   108.1700 Transfer by SBA of its interest in a NMVC Company's Leverage security.
13:1.0.1.1.8.10.109.16SECTION 108.1710
   108.1710 SBA authority to collect or compromise its claims.
13:1.0.1.1.8.10.109.17SECTION 108.1720
   108.1720 Characteristics of SBA's guarantee.
13:1.0.1.1.8.11SUBPART K
Subpart K - NMVC Company's Noncompliance With Terms of Leverage
13:1.0.1.1.8.11.110SUBJGRP 110
   Computation of NMVC Company's Capital Impairment
13:1.0.1.1.8.11.110.1SECTION 108.1810
   108.1810 Events of default and SBA's remedies for NMVC Company's noncompliance with terms of Debentures.
13:1.0.1.1.8.11.110.2SECTION 108.1830
   108.1830 NMVC Company's Capital Impairment definition and general requirements.
13:1.0.1.1.8.11.110.3SECTION 108.1840
   108.1840 Computation of NMVC Company's Capital Impairment Percentage.
13:1.0.1.1.8.12SUBPART L
Subpart L - Ending Operations as a NMVC Company
13:1.0.1.1.8.12.111.1SECTION 108.1900
   108.1900 Termination of participation as a NMVC Company.
13:1.0.1.1.8.13SUBPART M
Subpart M - Miscellaneous
13:1.0.1.1.8.13.111.1SECTION 108.1910
   108.1910 Non-waiver of SBA's rights or terms of Leverage security.
13:1.0.1.1.8.13.111.2SECTION 108.1920
   108.1920 NMVC Company's application for exemption from a regulation in this part 108.
13:1.0.1.1.8.13.111.3SECTION 108.1930
   108.1930 Effect of changes in this part 108 on transactions previously consummated.
13:1.0.1.1.8.13.111.4SECTION 108.1940
   108.1940 Procedures for designation of additional Low-Income Geographic Areas
13:1.0.1.1.8.14SUBPART N
Subpart N - Requirements and Procedures for Operational Assistance Grants to NMVC Companies and SSBICs
13:1.0.1.1.8.14.111.1SECTION 108.2000
   108.2000 Operational Assistance Grants to NMVC Companies and SSBICs.
13:1.0.1.1.8.14.111.2SECTION 108.2001
   108.2001 When and how SSBICs may apply for Operational Assistance grants.
13:1.0.1.1.8.14.111.3SECTION 108.2002
   108.2002 Eligibility of SSBICs to apply for Operational Assistance grants.
13:1.0.1.1.8.14.111.4SECTION 108.2003
   108.2003 Grant issuance fee for SSBICs.
13:1.0.1.1.8.14.111.5SECTION 108.2004
   108.2004 Contents of application submitted by SSBICs.
13:1.0.1.1.8.14.111.6SECTION 108.2005
   108.2005 Contents of plan submitted by SSBICs.
13:1.0.1.1.8.14.111.7SECTION 108.2006
   108.2006 Evaluation and selection of SSBICs.
13:1.0.1.1.8.14.111.8SECTION 108.2007
   108.2007 Grant award to SSBICs.
13:1.0.1.1.8.14.111.9SECTION 108.2010
   108.2010 Restrictions on use of Operational Assistance grant funds.
13:1.0.1.1.8.14.111.10SECTION 108.2020
   108.2020 Amount of Operational Assistance grant.
13:1.0.1.1.8.14.111.11SECTION 108.2030
   108.2030 Matching requirements.
13:1.0.1.1.8.14.111.12SECTION 108.2040
   108.2040 Reporting and recordkeeping requirements.