Title 13, Part 108 — New Markets Venture Capital (“Nmvc”) Program

Description of the New Markets Venture Capital Program.

Legal basis and applicability of this part 108.

Amendments to Act and regulations.

How to read this part 108.

Definition of terms.

Business form.

Qualified management.

Economic development primary mission.

Identified Low Income Geographic Areas.

SBA approval of initial Management Expenses.

Management and ownership diversity requirement.

Special rules for NMVC Companies formed as limited partnerships.

Adequate capital for NMVC Companies.

Minimum capital requirements for NMVC Companies.

Private Capital for NMVC Companies.

When and how to apply for designation as a NMVC Company.

Contents of application.

Contents of comprehensive business plan.

Grant issuance fee.

Evaluation and selection—general.

Eligibility and completeness.

Evaluation criteria.

Conditional approval.

Final approval as a NMVC Company.

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

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

Prohibition on exercise of ownership or Control rights in NMVC Company before SBA approval.

Notification to SBA of transactions that may change ownership or Control.

Standards governing prior SBA approval for a proposed transfer of Control.

Notification to SBA of pledge of NMVC Company's shares.

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

SBA approval of merger, consolidation, or reorganization of NMVC Company.

Lawful operations under the Act.

Representations to the public.

NMVC Company's adoption of an approved valuation policy.

Equipment and office requirements.

Safeguarding the NMVC Company's assets/Internal controls.

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

Employment of SBA officials.

SBA approval of NMVC Company's Investment Adviser/Manager.

Management Expenses of a NMVC Company.

Restrictions on investments of idle funds by NMVC Companies.

Prior approval of secured third-party debt of NMVC companies.

Voluntary decrease in NMVC Company's Regulatory Capital.

General requirement for NMVC Company to maintain and preserve records.

Required certifications for Loans and Investments.

Requirements to obtain information from Portfolio Concerns.

Requirement for NMVC companies to file financial statements and supplementary information with SBA (SBA Form 468).

Requirement to file portfolio financing reports (SBA Form 1031).

Requirement to report portfolio valuations to SBA.

Other items required to be filed by NMVC Company with SBA.

Reporting changes in NMVC Company not subject to prior SBA approval.

Examinations.

Responsibilities of NMVC Company during examination.

Examination fees.

Compliance with size standards in part 121 of this chapter as a condition of Assistance.

Requirement to finance Low-Income Enterprises.

Small Businesses 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 NMVC Company and the Portfolio Concern.

Financings in the form of equity interests.

Financings in the form of guarantees.

Purchasing securities from an underwriter or other third party.

Disposition of assets to NMVC Company's Associates.

Fees for management services provided to a Small Business by a NMVC Company or its Associate.

Type of Leverage and application procedures.

General eligibility requirement for Leverage.

Leverage fees payable by NMVC Company.

NMVC Company's acceptance of SBA remedies under § 108.1810.

Maximum amount of Leverage for a NMVC Company.

SBA's Leverage commitment to a NMVC Company—application procedure, amount, and term.

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

Draw-downs by NMVC Company under SBA's Leverage commitment.

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

SBA 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.

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

SBA access to records of the CRA, Brokers, Dealers and Pool or Trust assemblers.

Transfer by SBA of its interest in a NMVC Company's Leverage security.

SBA authority to collect or compromise its claims.

Characteristics of SBA's guarantee.

Events of default and SBA's remedies for NMVC Company's noncompliance with terms of Debentures.

NMVC Company's Capital Impairment definition and general requirements.

Computation of NMVC Company's Capital Impairment Percentage.

Termination of participation as a NMVC Company.

Non-waiver of SBA's rights or terms of Leverage security.

NMVC Company's application for exemption from a regulation in this part 108.

Effect of changes in this part 108 on transactions previously consummated.

Procedures for designation of additional Low-Income Geographic Areas

Operational Assistance Grants to NMVC Companies and SSBICs.

When and how SSBICs may apply for Operational Assistance grants.

Eligibility of SSBICs to apply for Operational Assistance grants.

Grant issuance fee for SSBICs.

Contents of application submitted by SSBICs.

Contents of plan submitted by SSBICs.

Evaluation and selection of SSBICs.

Grant award to SSBICs.

Restrictions on use of Operational Assistance grant funds.

Amount of Operational Assistance grant.

Matching requirements.

Reporting and recordkeeping requirements.