13 CFR § 108.1830 - NMVC Company's Capital Impairment definition and general requirements.

---
identifier: "/us/cfr/t13/s108.1830"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "13 CFR § 108.1830 - NMVC Company's Capital Impairment definition and general requirements."
title_number: 13
title_name: "Business Credit and Assistance"
section_number: "108.1830"
section_name: "NMVC Company's Capital Impairment definition and general requirements."
chapter_name: "SMALL BUSINESS ADMINISTRATION"
part_number: "108"
part_name: "NEW MARKETS VENTURE CAPITAL (“NMVC”) PROGRAM"
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. 689-689q."
regulatory_source: "66 FR 28609, May 23, 2001, unless otherwise noted."
cfr_part: "108"
---


# 108.1830 NMVC Company's Capital Impairment definition and general requirements.

(a) *Significance of Capital Impairment condition.* If you have a condition of Capital Impairment, you are not in compliance with the terms of your Leverage. As a result, SBA has the right to impose the applicable remedies for noncompliance in § 108.1810(g).

(b) *Definition of Capital Impairment condition.* You have a condition of Capital Impairment if your Capital Impairment Percentage, as computed in § 108.1840, exceeds 70 percent.

(c) *Quarterly computation requirement and procedure.* You must determine whether you have a condition of Capital Impairment as of the end of each fiscal quarter. You must notify SBA promptly if you are capitally impaired.

(d) *SBA's right to determine NMVC Company's Capital Impairment condition.* SBA may make its own determination of your Capital Impairment condition at any time.