Title 7, Part 4290 — Rural Business Investment Company (“Rbic”) Program

Description of the Rural Business Investment Company Program.

Leveraged and Non-leveraged Rural Business Investment Companies.

Legal basis and applicability of this part 4290.

Amendments to Act and regulations.

How to read this part 4290.

Responsibility for implementing this part 4290.

Definition of terms.

Business form.

Qualified management.

Plan to invest in Rural Areas.

Identified Rural Areas.

Approval of initial Management Expenses.

Management and ownership diversity requirement.

Special rules for Partnership RBICs and LLC RBICs.

Obligations of Control Persons.

Adequate capital for RBICs.

Minimum capital requirements for RBICs.

Private Capital for RBICs.

Limitations on non-cash capital contributions in Private Capital.

When and how to apply for a RBIC License.

Contents of application.

Contents of comprehensive business plan.

Guarantee fee.

Evaluation and selection—general.

Eligibility and completeness.

Initial review of Applicant's management team's qualifications.

Evaluation criteria.

Selection.

Licensing as a RBIC.

Changes in ownership of 10 percent or more of RBIC but no change of Control.

Changes in Control of RBIC (through change in ownership or otherwise).

Prohibition on exercise of ownership or Control rights in RBIC before approval.

Notification of transactions that may change ownership or Control.

Standards governing prior approval for a proposed transfer of Control.

Notification of pledge of RBIC's shares.

Restrictions on Common Control or ownership of two (or more) RBICs.

Prior approval of merger, consolidation, or reorganization of RBIC.

Prior approval of changes to RBIC's business plan.

Lawful operations under the Act.

Representations to the public.

RBIC's adoption of an approved valuation policy.

Equipment of USDA or SBA officials.

Safeguarding the RBIC's assets/Internal controls.

Violations based on false filings and nonperformance of agreements with the Agency or SBA.

Compliance with non-discrimination laws and regulations applicable to federally-assisted programs.

Employment of USDA or SBA officials.

Approval of RBIC's Investment Adviser/Manager.

Management Expenses of a RBIC.

Restrictions on investments of idle funds by RBICs.

Prior approval of secured third-party debt of RBICs.

Voluntary decrease in RBIC's Regulatory Capital.

General requirement for RBIC to maintain and preserve records.

Required certifications for Loans and Investments.

Requirements to obtain information from Portfolio Concerns.

Requirement for RBICs to file financial statements and supplementary information with the Agency.

Requirement to file portfolio financing reports with the Agency.

Requirement to report portfolio valuations to the Agency

Other items required to be filed by RBIC with the Agency.

Reporting changes in RBIC not subject to prior approval.

Examinations.

Responsibilities of RBIC during examination.

Examination fees.

Requirements concerning types of enterprises to receive financing.

Enterprises that may be ineligible for Financing.

Financings which constitute conflicts of interest.

Portfolio diversification (“overline” limitation).

How a change in size or activity of a Portfolio Concern affects the RBIC and the Portfolio Concern.

Financings in the form of Equity Securities.

Financings in the form of Loans.

Financings in the form of Debt Securities.

Financings in the form of guarantees.

Purchasing securities from an underwriter or other third party.

Minimum term of Financing.

Exceptions to minimum term of Financing.

Maximum term of Financing.

Maximum rate of amortization on Loans and Debt Securities.

Restrictions on redemption of Equity Securities.

Financing fees and expense reimbursements a RBIC may receive from an Enterprise.

Assets acquired in liquidation of Portfolio securities.

Disposition of assets to RBIC's Associates or to competitors of Portfolio Concerns.

Management fees for services provided to an Enterprise by RBIC or its Associate.

Type of Leverage and application procedures.

General eligibility requirements for Leverage.

Leverage fees payable by RBIC.

RBIC's acceptance of remedies under § 4290.1810.

Maximum amount of Leverage for a RBIC.

Leverage commitment to a RBIC—application procedure, amount, and term.

Requirement for RBIC to file financial statements at the time of request for a draw.

Draw-downs by RBIC under Leverage commitment.

Funding of RBIC's draw request through sale to third-party.

Restrictions on distributions to RBIC investors while RBIC has outstanding Leverage.

Agency's authority to issue and guarantee Trust Certificates.

Effect of prepayment or early redemption of Leverage on a Trust Certificate.

Functions of agents, including Central Registration Agent, Selling Agent and Fiscal Agent.

Regulation of Brokers and Dealers and disclosure to purchasers of Leverage or Trust Certificates.

Agency's access to records of the CRA, Brokers, Dealers and Pool or Trust assemblers.

Agency's transfer of interest in a RBIC's Leverage security.

Agency's authority to collect or compromise claims.

Characteristics of Agency's guarantee.

Events of default and the Agency's remedies for RBIC's noncompliance with terms of Debentures.

RBIC's Capital Impairment definition and general requirements.

Computation of RBIC's Capital Impairment Percentage.

Termination of participation as a RBIC.

Non-waiver of rights or terms of Leverage security.

RBIC's application for exemption from a regulation in this part 4290.

Effect of changes in this part 4290 on transactions previously consummated.

Integration of this part with other regulations applicable to USDA's programs.

Operational Assistance Grants to RBICs.

Non-leveraged RBICs—General.

§§ 4290.3001-4290.3002 [Reserved]

Responsibilities for implementing Non-leveraged RBICs.

[Reserved]

Qualifications for the Non-leveraged RBIC Program.

§§ 4290.3006-4290.3009 [Reserved]

Application and Approval Process for RBIC licensing without Leverage.

§§ 4290.3011-4290.3014 [Reserved]

Evaluation and selection of Non-leveraged RBICs.

§§ 4290.3016-4290.3019 [Reserved]

Changes in Ownership, Structure, or Control.

§§ 4290.3021-4290.3024 [Reserved]

Managing the Operations of a RBIC.

§§ 4290.3026-4290.3029 [Reserved]

Financing of Enterprises by RBICs.

§§ 4290.3031-4290.3034 [Reserved]

Recordkeeping, Reporting, and Examination Requirements for RBICs.

§§ 4290.3036-4290.3039 [Reserved]

Financial Assistance for RBICs.

Events of default and the Agency's remedies for RBIC's noncompliance with terms of licensure.

§§ 4290.3042-4290.3044 [Reserved]

Computation of RBIC's Capital Impairment.

§§ 4290.3046-4290.3049 [Reserved]

Operational Assistance Grants for RBICs.

§§ 4290.3051-4290.3099 [Reserved]