13 CFR § 107.320 - Leverage portfolio diversification.

---
identifier: "/us/cfr/t13/s107.320"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "13 CFR § 107.320 - Leverage portfolio diversification."
title_number: 13
title_name: "Business Credit and Assistance"
section_number: "107.320"
section_name: "Leverage portfolio diversification."
chapter_name: "SMALL BUSINESS ADMINISTRATION"
part_number: "107"
part_name: "SMALL BUSINESS INVESTMENT COMPANIES"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "15 U.S.C. 662, 681-687, 687b-h, 687k-m."
regulatory_source: "61 FR 3189, Jan. 31, 1996, unless otherwise noted."
cfr_part: "107"
---


# 107.320 Leverage portfolio diversification.

To minimize “cost” as defined in section 502(5)(A) of the Federal Credit Reform Act of 1990, SBA reserves the right to maintain broad diversification to mitigate concentration of investment risk in approving Leverage commitments for Leveraged Licensees with respect to:

(a) The year in which they commence operations;

(b) The geographic location (giving first priority to applicants from Underlicensed States with below median SBIC Financing dollars per State); and

(c) The asset class and investment strategy.

[88 FR 46009, July 18, 2023]