GroundRules
13 CFR 108.740: Portfolio diversification (“overline” limitation).
Where this section sits in the code
- Title 13—Business Credit and Assistance
- CHAPTER I—SMALL BUSINESS ADMINISTRATION
- PART 108—NEW MARKETS VENTURE CAPITAL (“NMVC”) PROGRAM
- Subpart I—Financing of Small Businesses by NMVC Companies
(a) Without SBA's prior written approval, you may provide Financing or a Commitment to a Small Business only if the resulting amount of your aggregate outstanding Financings and Commitments to such Small Business and its Affiliates does not exceed 10 percent of the sum of:
(1) Your Regulatory Capital as of the date of the Financing or Commitment; plus
(2) The total amount of leverage projected in your participation agreement with SBA; plus
(3) Any permitted Distribution(s) you made during the five years preceding the date of the Financing or Commitment which reduced your Regulatory Capital.
(b) For the purposes of paragraph (a) of this section, you must measure each outstanding Financing at its current cost plus any amount of the Financing that was previously written off.
Collected 2026-08-27T02:24:18Z. Source file · JSON