13 CFR § 107.800 - Financings in the form of Equity Securities.

---
identifier: "/us/cfr/t13/s107.800"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "13 CFR § 107.800 - Financings in the form of Equity Securities."
title_number: 13
title_name: "Business Credit and Assistance"
section_number: "107.800"
section_name: "Financings in the form of Equity Securities."
chapter_name: "SMALL BUSINESS ADMINISTRATION"
part_number: "107"
part_name: "SMALL BUSINESS INVESTMENT COMPANIES"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
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"
---


# 107.800 Financings in the form of Equity Securities.

(a) You may purchase the Equity Securities of a Small Business. You may not, inadvertently or otherwise:

(1) Become a general partner in any unincorporated business; or

(2) Become jointly or severally liable for any obligations of an unincorporated business.

(b) *Definition.* Equity Securities means stock of any class in a corporation, stock options, warrants, limited partnership interests in a limited partnership, membership interests in a limited liability company, or joint venture interests. If the Financing agreement contains debt-type acceleration provisions or includes redemption provisions, other than those permitted under § 107.850, the security will be considered a Debt Security for purposes of § 107.855 and § 107.1150(c)(1).

[61 FR 3189, Jan. 31, 1996, as amended at 74 FR 33915, July 14, 2009]