text:
15 U.S.C. 689-689q.
The New Markets Venture Capital ("NMVC") Program is a developmental venture capital program for the purpose of promoting economic development and the creation of wealth and job opportunities in low-income geographic areas and among individuals living in such areas. SBA selects and then enters into participation agreements with selected newly formed venture capital companies, and provides leverage in the form of debenture guarantees to such companies to allow them to make equity capital investments in smaller enterprises located in low-income geographic areas. SBA also awards grants to such companies and to Specialized Small Business Investment Companies so that they can provide operational assistance to such smaller enterprises in connection with such investments.
The regulations in this part implement Part B of Title III of the Small Business Investment Act of 1958, as amended (15 U.S.C. 661
A NMVC Company is subject to all provisions of the Act and parts 108 and 112 of title 13 of the Code of Federal Regulations.
(c) "
The following definitions apply to this part 108:
(1)(i) An officer, director, employee or agent of a Corporate NMVC Company;
(ii) A Control Person, employee or agent of a Partnership NMVC Company;
(iii) A managing member of a LLC NMVC Company;
(iv) An Investment Adviser/Manager of any NMVC Company, including any Person who contracts with a Control Person of a Partnership NMVC Company to be the Investment Adviser/Manager of such NMVC Company; or
(v) Any Person regularly serving a NMVC Company on retainer in the capacity of attorney at law.
(2) Any Person who owns or controls, or who has entered into an agreement to own or control, directly or indirectly, at least 10 percent of any class of stock of a Corporate NMVC Company or 10 percent of the membership interests of an LLC NMVC Company, or a limited partner's interest of at least 10 percent of the partnership capital of a Partnership NMVC Company. However, neither a limited partner in a Partnership NMVC Company nor a non-managing member in an LLC NMVC Company is considered an Associate if such Person is an entity Institutional Investor whose investment in the Partnership, including commitments, represents no more than 33 percent of the capital of the NMVC Company and no more than five percent of such Person's net worth.
(3) Any officer, director, partner (other than a limited partner), manager, agent, or employee of any Associate described in paragraph (1) or (2) of this definition.
(4) Any Person that directly or indirectly Controls, or is Controlled by, or is under Common Control with, a NMVC Company.
(5) Any Person that directly or indirectly Controls, or is Controlled by, or is under Common Control with, any Person described in paragraphs (1) and (2) of this definition.
(6) Any Close Relative of any Person described in paragraphs (1), (2), (4), and (5) of this definition.
(7) Any Secondary Relative of any Person described in paragraphs (1), (2), (4), and (5) of this definition.
(8) Any concern in which—
(i) Any person described in paragraphs (1) through (6) of this definition is an officer; general partner, or managing member; or
(ii) Any such Person(s) singly or collectively Control or own, directly or indirectly, an equity interest of at least 10 percent (excluding interests that such Person(s) own indirectly through ownership interests in the NMVC Company).
(9) Any concern in which any Person(s) described in paragraph (7) of this definition singly or collectively own (including beneficial ownership) a majority equity interest, or otherwise have Control. As used in this paragraph (9), "collectively" means together with any Person(s) described in paragraphs (1) though (7) of this definition.
(10) For the purposes of this definition, if any Associate relationship described in paragraphs (1) through (7) of this definition exists at any time within six months before or after the date that a NMVC Company provides Financing, then that Associate relationship is considered to exist on the date of the Financing.
(11) If any NMVC Company has any ownership interest in another NMVC Company, the two NMVC companies are Associates of each other.
(1) A current or former spouse;
(2) A father, mother, guardian, brother, sister, son, daughter; or
(3) A father-in-law, mother-in-law, brother-in-law, sister-in-law, son-in-law, or daughter-in-law.
(1) Has applied for participation as a NMVC Company, and
(2) SBA has conditionally approved to participate in the NMVC program for a specified period of time not to exceed two years, subject to the company fulfilling the requirements to be a NMVC Company within that specified period of time.
(1) A general partner of a Partnership NMVC Company;
(2) Any Person serving as the general partner, officer, director, or manager (in the case of a limited liability company) of any entity that controls a NMVC Company, either directly or through an intervening entity;
(3) Any Person that—
(i) Controls or owns, directly or through an intervening entity, at least 10 percent of a Partnership NMVC Company or any entity described in paragraphs (1) or (2) of this definition; and
(ii) Participates in the investment decisions of the general partner of such Partnership NMVC Company;
(4) Any Person that controls or owns, directly or through an intervening entity, at least 50 percent of a Partnership NMVC Company or any entity described in paragraphs (1) or (2) of this definition.
(1) Loans;
(2) Debt Securities;
(3) Equity Securities;
(4) Guarantees; or
(5) Purchases of securities of a Small Business through or from an underwriter (see § 108.825).
(i) A State or National bank, trust company, savings bank, or savings and loan association.
(ii) An insurance company.
(iii) A 1940 Act Investment Company or Business Development Company (each as defined in the Investment Company Act of 1940, as amended (15 U.S.C. 8a-1
(iv) A holding company of any entity described in paragraph (l)(i), (ii) or (iii) of this definition.
(v) An employee benefit or pension plan established for the benefit of employees of the Federal government, any State or political subdivision of a State, or any agency or instrumentality of such government unit.
(vi) An employee benefit or pension plan (as defined in the Employee Retirement Income Security Act of 1974, as amended (Public Law 93-406, 88 Stat. 829), excluding plans established under section 401(k) of the Internal Revenue Code of 1986 (26 U.S.C. 401(k)), as amended).
(vii) A trust, foundation or endowment exempt from Federal income taxation under the Internal Revenue Code of 1986, as amended.
(viii) A corporation, partnership or other entity with a net worth (exclusive of unfunded commitments from investors) of more than $10 million.
(ix) A State, a political subdivision of a State, or an agency or instrumentality of a State or its political subdivision.
(x) An entity whose primary purpose is to manage and invest non-Federal funds on behalf of at least three Institutional Investors described in paragraphs (l)(i) through (l)(ix) of this definition, each of whom must have at least a 10 percent ownership interest in the entity.
(xi) Any other entity that SBA determines to be an Institutional Investor.
(A) An individual who is an Accredited Investor (as defined in the Securities Act of 1933, as amended (15 U.S.C. 77a-77aa)) and whose commitment to the NMVC Company is backed by a letter of credit from a State or National bank acceptable to SBA.
(B) An individual whose personal net worth is at least $2 million and at least ten times the amount of his or her commitment to the NMVC Company. The individual's personal net worth must not include the value of any equity in his or her most valuable residence.
(C) An individual whose personal net worth, not including the value of any equity in his or her most valuable residence, is at least $10 million.
(ii) Any individual who is not a permanent resident of the United States but who otherwise satisfies paragraph (2)(i) of this definition provided such individual has irrevocably appointed an agent within the United States for the service of process.
(1) Any population census tract (or in the case of an area that is not tracted for population census tracts, the equivalent county division, as defined by the Bureau of the Census of the United States Department of Commerce for purposes of defining poverty areas), if—
(i) The poverty rate for that census tract is not less than 20 percent;
(ii) In the case of a tract—
(A) That is located within a metropolitan area, 50 percent or more of the households in that census tract have an income equal to less than 60 percent of the area median gross income; or
(B) That is not located within a metropolitan area, the median household
(C) As determined by the Administrator in accordance with § 108.1940 of this part, a substantial population of Low-Income Individuals reside, an inadequate access to investment capital exists, or other indications of economic distress exist in that census tract; or
(2) Any area located within—
(i) A Historically Underutilized Business Zone ("HUBZone") as defined in section 3(p) of the Small Business Act and 13 CFR 126.103;
(ii) An Urban Empowerment Zone or Urban Enterprise Community (as designated by the Secretary of the United States Department of Housing and Urban Development); or
(iii) A Rural Empowerment Zone or Rural Enterprise Community (as designated by the Secretary of the United States Department of Agriculture).
(1) For metropolitan areas, 80 percent of the area median income; and
(2) For nonmetropolitan areas, the greater of—
(i) 80 percent of the area median income, or
(ii) 80 percent of the statewide nonmetropolitan area median income.
(1) Has been granted final approval by SBA under § 108.380, and
(2) Has entered into a Participation Agreement with SBA. For certain purposes, the Entity General Partner of a Partnership NMVC Company is treated as if it were a NMVC Company (see § 108.160(a)).
(1) Details the company's operating plan and investment criteria; and
(2) Requires the company to make investments in Smaller Enterprises at least 80 percent of which Smaller Enterprises are located in LI Areas.
(1) A grandparent, grandchild, or any other ancestor or lineal descendent who is not a Close Relative;
(2) An uncle, aunt, nephew, niece, or first cousin; or
(3) A spouse of any person described in paragraph (1) or (2) of this definition.
(1) Together with its Affiliates has a net worth of not more than $6.0 million and average net income after Federal income taxes (excluding any carry-over losses) for the preceding two years no greater than $2.0 million; or
(2) Both together with its Affiliates, and by itself, meets the size standard of § 121.201 of this chapter at the time of Financing for the industry in which it is then primarily engaged.
(1) Invests solely in small business concerns that contribute to a well-balanced national economy by facilitating ownership in such concerns by persons whose participation in the free enterprise system is hampered because of social or economic disadvantages; and
(2) Was licensed under section 301(d) of the Small Business Investment Act, as in effect before September 30, 1996.
A NMVC Company must be a newly formed for-profit entity or, subject to § 108.150, a newly formed for-profit subsidiary of an existing entity. It must be organized under State law solely for the purpose of performing the functions and conducting the activities contemplated under the Act. It may be organized as a corporation ("Corporate NMVC Company"), a limited partnership ("Partnership NMVC Company"), or a limited liability company ("LLC NMVC Company").
An Applicant must show, to the satisfaction of SBA, that its current or proposed management team is qualified and has the knowledge, experience, and capability in Community Development Finance or Relevant Venture Capital Finance, necessary for investing in the types of businesses contemplated by the Act, the regulations in this part and its business plan. In determining whether an Applicant's current or proposed management team has sufficient qualifications, SBA will consider information provided by the Applicant and third parties concerning the background, capability, education, training and reputation of its general partners, managers, officers, key personnel, and investment committee and governing board members. The Applicant must designate at least one individual as the official responsible for contact with SBA.
The primary mission of a NMVC Company must be economic development of one or more LI Areas.
A NMVC Company must identify the specific LI Areas in which it intends to make Developmental Venture Capital investments and provide Operational Assistance under the NMVC program.
A NMVC Company must have its Management Expenses approved by SBA at the time of designation as a NMVC Company. (See § 108.520 for the definition of Management Expenses.)
(1) Entities whose overall activities are regulated and periodically examined by state, Federal or other governmental authorities satisfactory to SBA;
(2) Entities listed on the New York Stock Exchange;
(3) Entities that are publicly-traded and that meet both the minimum numerical listing standards and the corporate governance listing standards of the New York Stock Exchange:
(4) Public or private employee pension funds;
(5) Trusts, foundations, or endowments, but only if exempt from Federal income taxation; and
(6) Other Institutional Investors satisfactory to SBA.
(1) Notify SBA within 10 days; and
(2) Re-establish diversity within six months.
(2) SBA must approve any person who will serve as an officer, director, manager, or general partner of the Entity General Partner. This provision must be stated in an Entity General Partner's Certificate of Incorporation, operating agreement, limited partnership agreement or other similar governing instrument.
(3) An Entity General Partner is subject to the same examination and reporting requirements as a NMVC Company under sections 361 and 362 of the Act. The restrictions and obligations imposed upon a NMVC Company by §§ 108.1810, 108.30, 108.410 through 108.450, 108.470, 108.500, 108.510, 108.585, 108.600, 108.680, 108.690 through 108.692, and 108.1910 apply also to an Entity General Partner of a NMVC Company.
(4) The general partner(s) of your Entity General Partner(s) will be considered your general partner.
(5) If your Entity General Partner is a limited partnership, its limited partners may be considered your Control Person(s) if they meet the definition for Control Person in § 108.50.
(1) You must have a minimum duration of 10 years or two years following the maturity of your last-maturing Leverage security, whichever is longer. After 10 years, if all Leverage has been repaid or redeemed and all amounts due SBA, its agent, or Trustee have been paid, the Partnership NMVC Company may be terminated by a vote of your partners;
(2) None of your general partner(s) may be removed or replaced by your limited partners without prior written approval of SBA;
(3) Any transferee of, or successor in interest to, your general partner shall have only the rights and liabilities of a limited partner pending SBA's written approval of such transfer or succession; and
(4) You must incorporate all the provisions in this paragraph (b) in your limited partnership agreement.
You must meet the requirements of §§ 108.200-108.230 in order to qualify for designation as a NMVC Company and to receive Leverage.
You must have Regulatory Capital of at least $5,000,000 and Leverageable Capital of at least $500,000 to become a NMVC Company.
(1) Funds borrowed by a NMVC Company from any source.
(2) Funds obtained through the issuance of Leverage.
(3) Funds obtained directly from any Federal agency or department.
(4) Any portion of a commitment from an Institutional Investor with a net worth of less than $10 million that exceeds 10 percent of such Institutional Investor's net worth.
(5) A commitment from an investor if SBA determines that the collectability of the commitment is questionable.
(1) Such Person's net worth is at least twice the amount borrowed; or
(2) SBA gives its prior written approval of the capital contribution.
Each Applicant must submit a complete application, including the following:
(1) The specific amount of Regulatory Capital it proposes to raise (which amount must be at least $5,000,000); and
(2) The specific amount of binding commitments for contributions in cash or in-kind it proposes to raise, and/or an annuity it proposes to purchase, in accordance with the requirements of § 108.2030, as its matching resources for its Operational Assistance grant award (the aggregate of which must be not less than $1,500,000 or 30 percent of the Regulatory Capital it proposes to raise under paragraph (a)(1) of this section, whichever is greater).
(1) The Applicant;
(2) Its strategy for how it proposes to make successful Developmental Venture Capital investments in identified LI Areas;
(3) The markets in the LI Areas it proposes to serve; and
(4) How it intends to work with community organizations in and be accountable to the residents of identified LI Areas in order to facilitate its Developmental Venture Capital investments.
(1) A description of the extent to which it will concentrate its Developmental Venture Capital investments and Operational Assistance activities in identified LI Areas;
(2) An estimate of the social, economic, and community development benefits to be created within identified LI Areas over the next five years or more as a result of its activities;
(3) A description of the criteria to be used to measure the benefits created as a result of its activities;
(4) A discussion about the amount of such benefits created that it will consider to constitute successfully meeting the objectives of the NMVC program.
An Applicant must pay to SBA a grant issuance fee of $5,000. An Applicant must submit this fee in advance, at the time of application submission. If SBA does not select an Applicant as a Conditionally Approved NMVC Company or designate an Applicant as a NMVC Company, SBA will refund this fee to the Applicant.
SBA will evaluate and select an Applicant to participate in the NMVC program solely at SBA's discretion, based on SBA's review of the Applicant's application materials, interviews or site visits with the Applicant (if any), and background investigations conducted by SBA and other Federal agencies. SBA's evaluation and selection process is intended to—
(a) Ensure that Applicants are evaluated on a competitive basis and in a fair and consistent manner;
(b) Take into consideration the unique proposals presented by Applicants;
(c) Ensure that each Applicant that SBA designates as a NMVC Company can fulfill successfully the goals of its comprehensive business plan; and
(d) Ensure that SBA selects Applicants in such a way as to promote Developmental Venture Capital investments nationwide and in both urban and rural areas.
SBA will not consider any application that is not complete or that is submitted by an Applicant that does not meet the eligibility criteria described in subpart C of this part. SBA, at its sole discretion, may request from an Applicant additional information concerning eligibility criteria or easily completed portions of the application in order to allow SBA to consider that Applicant's application.
SBA will evaluate and select an Applicant for participation in the NMVC program by considering the following criteria—
(a) The quality of the Applicant's comprehensive business plan in terms of meeting the objectives of the NMVC program;
(b) The likelihood that the Applicant will fulfill the goals described in its comprehensive business plan;
(c) The capability of the Applicant's management team;
(d) The strength and likelihood for success of the Applicant's operations and investment strategies;
(e) The need for Developmental Venture Capital investments in the LI Areas in which the Applicant intends to invest;
(f) The extent to which the Applicant will concentrate its activities on serving the LI Areas in which it intends to invest, including the ratio of resources that it proposes to invest in such areas as compared to other areas;
(g) The Applicant's demonstrated understanding of the markets in the LI Areas in which it intends to focus its activities;
(h) The likelihood that and the time frame within which the Applicant will be able to—
(1) Raise the Regulatory Capital it proposes to raise for its investments, and
(2) Obtain the binding commitments for contributions in cash or in-kind and/or an annuity it proposes to obtain as its matching resources for its Operational Assistance grant award;
(i) The strength of the Applicant's proposal to provide Operational Assistance to Smaller Enterprises in which it plans to invest;
(j) The extent to which the activities proposed by the Applicant will promote economic development and the creation of wealth and job opportunities in the LI Areas in which it intends to invest and among individuals living in LI Areas; and
(k) The strength of the Applicant's application compared to applications submitted by other Applicants and by SSBICs intending to invest in the same or proximate LI Areas.
From among the Applicants submitting eligible and complete applications, SBA will select a number of Applicants and will conditionally approve such selected Applicants to participate in the NMVC program. SBA will give each such Conditionally Approved NMVC Company a specific period of time, not to exceed two years, to satisfy the requirements to become a NMVC Company.
(1) Grant final approval to participate in the NMVC program and designate such company as a NMVC Company, if such Conditionally Approved NMVC Company:
(i) Within the specific period of time SBA gave to it when SBA conditionally approved it for participation in the NMVC program, has raised:
(A) The amount of Regulatory Capital set forth in its application, pursuant to § 108.310(a)(1); and
(B) The amount of matching resources for its Operational Assistance grant award set forth in its application, pursuant to § 108.310(a)(2); and
(ii) Enters into a Participation Agreement with SBA; or
(2) Revoke SBA's conditional approval of the company, at which time it is no longer a Conditionally Approved NMVC Company and must not participate in the NMVC program or represent itself as a Conditionally Approved NMVC Company.
(i) Already has raised at least 20 percent of the total amount of required matching resources; and
(ii) Has a viable plan that reasonably projects its capacity to raise the remainder of the required amount of matching resources.
You must obtain SBA's prior written approval for any proposed transfer or issuance of ownership interests that results in the ownership (beneficial or of record) by any Person, or group of Persons acting in concert, of at least 10 percent of any class of your stock, partnership capital or membership interests.
You must obtain SBA's prior written approval for any proposed transaction or event that results in Control by any Person(s) not previously approved by SBA.
Without prior written SBA approval, no change of ownership or Control may take effect and no officer, director, employee or other Person acting on your behalf shall:
(a) Register on your books any transfer of ownership interest to the proposed new owner(s);
(b) Permit the proposed new owner(s) to exercise voting rights with respect
(c) Permit the proposed new owner(s) to participate in any manner in the conduct of your affairs (including exercising control over your books, records, funds or other assets; participating directly or indirectly in any disposition thereof; or serving as an officer, director, partner, manager, employee or agent); or
(d) Allow ownership or Control to pass to another Person.
You must promptly notify SBA as soon as you have knowledge of transactions or events that may result in a transfer of Control or ownership of at least 10 percent of your capital. If there is any doubt as to whether a particular transaction or event will result in such a change, report the facts to SBA.
SBA approval is contingent upon full disclosure of the real parties in interest, the source of funds for the new owners' interest, and other data requested by SBA. As a condition of approving a proposed transfer of control, SBA may:
(a) Require an increase in your Regulatory Capital;
(b) Require the new owners or the transferee's Control Person(s) to assume, in writing, personal liability for your Leverage, effective only in the event of their direct or indirect participation in any transfer of Control not approved by SBA; or
(c) Require compliance with any other conditions set by SBA, including compliance with the requirements for minimum capital and management-ownership diversity as in effect at such time for new NMVC Companies.
(a) You must notify SBA in writing, within 30 calendar days, of the terms of any transaction in which:
(1) Any Person, or group of Persons acting in concert, pledges shares of your stock (or equivalent ownership interests) as collateral for indebtedness; and
(2) The shares pledged are at least 10 percent of your Regulatory Capital.
(b) If the transaction creates a change of ownership or Control, you must comply with § 108.400 or § 108.410, as appropriate.
Without SBA's prior written approval, you must not have an officer, director, manager, Control Person, or owner (with a direct or indirect ownership interest of at least 10 percent) who is also:
(a) An officer, director, manager, Control Person, or owner (with a direct or indirect ownership interest of at least 10 percent) of another NMVC Company; or
(b) An officer or director of any Person that directly or indirectly controls, or is controlled by, or is under Common Control with, another NMVC Company.
You may not merge, consolidate, change form of organization (corporation or partnership) or reorganize without SBA's prior written approval. Any such merger or consolidation will be subject to § 108.440.
You must engage only in the activities contemplated by the Act and in no other activities.
You may not represent or imply to anyone that the SBA, the U.S. Government or any of its agencies or officers has approved any ownership interests you have issued or obligations you have incurred. Be certain to include a statement to this effect in any solicitation to investors. Example: You may not represent or imply that "SBA stands behind the NMVC Company" or that "Your capital is safe because SBA's experts review proposed investments to make sure they are safe for the NMVC Company."
(1) Adopt without change the model valuation policy set forth in section III of the Valuation Guidelines for SBICs; or
(2) Obtain SBA's prior written approval of an alternative valuation policy.
(2) On a case-by-case basis, SBA may require you to perform valuations more frequently.
(3) You must report material adverse changes in valuations at least quarterly, within thirty days following the close of the quarter.
(2) The independent public accountant's report on your audited annual financial statements (SBA Form 468) must include a statement that your valuations were prepared in accordance with your approved valuation policy.
You must adopt a plan to safeguard your assets and monitor the reliability of your financial data, personnel, Portfolio, funds and equipment. You must provide your bank and custodian with a certified copy of your resolution or
The following shall constitute a violation of this part:
(1) Any false statement knowingly made; or
(2) Any misrepresentation of a material fact; or
(3) Any failure to state a material fact. A material fact is any fact that is necessary to make a statement not misleading in light of the circumstances under which the statement was made.
Without SBA's prior written approval, for a period of two years after the date of your most recent issuance of Leverage (or the receipt of any SBA Assistance as defined in part 105 of this chapter), you are not permitted to employ, offer employment to, or retain for professional services, any person who:
(a) Served as an officer, attorney, agent, or employee of SBA on or within one year before such date; and
(b) As such, occupied a position or engaged in activities which, in SBA's determination, involved discretion with respect to the granting of SBA Assistance.
You may employ an Investment Adviser/Manager who will be subject to the supervision of your board of directors, managing members, or general partner. If you have Leverage or plan to seek Leverage, you must obtain SBA's prior written approval of the management contract. SBA's approval of an Investment Adviser/Manager for one NMVC Company does not indicate approval of that manager for any other NMVC Company.
(1) Specify the services the Investment Adviser/Manager will render to you and to the Small Businesses in your Portfolio; and
(2) Indicate the basis for computing Management Expenses.
SBA must approve your initial Management Expenses and any increases in your Management Expenses.
(1) Salaries;
(2) Office expenses;
(3) Travel;
(4) Business development;
(5) Office and equipment rental;
(6) Bookkeeping; and
(7) Expenses related to developing, investigating and monitoring investments.
(b) Management Expenses do not include services provided by specialized outside consultants, outside lawyers and independent public accountants, if they perform services not generally performed by a venture capital company.
(1) Direct obligations of, or obligations guaranteed as to principal and interest by, the United States, which mature within 15 months from the date of the investment; or
(2) Repurchase agreements with federally insured institutions, with a maturity of seven days or less. The securities underlying the repurchase agreements must be direct obligations of, or obligations guaranteed as to principal and interest by, the United States. The
(3) Certificates of deposit with a maturity of one year or less, issued by a federally insured institution; or
(4) A deposit account in a federally insured institution, subject to a withdrawal restriction of one year or less; or
(5) A checking account in a federally insured institution; or
(6) A reasonable petty cash fund.
(2) Exception: You may make a temporary deposit (not to exceed 30 days) in excess of the insured amount, in a transfer account established to facilitate the receipt and disbursement of funds or to hold funds necessary to honor Commitments issued.
(1) You are in regulatory compliance;
(2) The security interest in your assets is limited to either those assets being acquired with the borrowed funds or an asset coverage ratio of no more than 2:1;
(3) Your request is for approval of a secured line of credit that would not cause your total outstanding borrowings (not including Leverage) to exceed 50 percent of your Leverageable Capital.
You must obtain SBA's prior written approval to reduce your Regulatory Capital by more than two percent in any fiscal year. At all times, you must retain sufficient Regulatory Capital to meet the minimum capital requirements in the Act and § 108.210, and sufficient Leverageable Capital to avoid having excess Leverage in violation of section 355(d) of the Act.
(1) All your accounting and other financial records;
(2) All minutes of meetings of directors, stockholders, executive committees, partners, or other officials; and
(3) All documents and supporting materials related to your business transactions, except for any items held by a custodian under a written agreement between you and a Portfolio Concern or non-SBA lender, or any securities held in a safe deposit box, or by a licensed securities broker in an amount not exceeding the broker's per-account insurance coverage.
(1) You must preserve for at least 15 years or, in the case of a Partnership NMVC Company or LLC NMVC Company, at least two years beyond the date of liquidation:
(i) All your accounting ledgers and journals, and any other records of assets, asset valuations, liabilities, equity, income, and expenses.
(ii) Your Articles, bylaws, minute books, and NMVC Company application.
(iii) All documents evidencing ownership of the NMVC Company including ownership ledgers, and ownership transfer registers.
(2) You must preserve for at least six years all supporting documentation (such as vouchers, bank statements, or canceled checks) for the records listed in paragraph (b)(1) of this section.
(3) After final disposition of any item in your Portfolio, you must preserve for at least six years:
(i) Financing applications and Financing instruments.
(ii) All loan, participation, and escrow agreements.
(iii) Size status declarations (SBA Form 480).
(iv) Any capital stock certificates and warrants of the Portfolio Concern that you did not surrender or exercise.
(v) All other documents and supporting material relating to the Portfolio Concern, including correspondence.
(4) You may substitute a microfilm or computer-scanned or generated copy for the original of any record covered by this paragraph (c).
For each of your Loans and Investments, you must have the documents listed in this section. You must keep these documents in your files and make them available to SBA upon request.
(a) SBA Form 480, the Size Status Declaration, executed both by you and by the concern you are financing. By executing this document, both parties certify that the concern is a Small Business. For securities purchased from an underwriter in a public offering, you may substitute a prospectus showing that the concern is a Small Business.
(b) SBA Form 652, a certification by the concern you are financing that it will not illegally discriminate (see part 112 of this chapter).
(c) A certification by the concern you are financing of the intended use of the proceeds. For securities purchased from an underwriter in a public offering, you may substitute a prospectus indicating the intended use of proceeds.
(d) For each Low-Income Investment, a certification by the concern you are financing as to the basis for its qualification as a Low-Income Enterprise.
All the information required by this section is subject to the requirements of § 108.600 and must be in English.
(i) Evaluate the financial condition of the Portfolio Concern for the purpose of valuing your investment;
(ii) Determine the continued eligibility of the Portfolio Concern;
(iii) Verify the use of Financing proceeds; and
(iv) Evaluate the community economic development impact of the Financing.
(2) The president, chief executive officer, treasurer, chief financial officer, general partner, or proprietor of the Portfolio Concern must certify the information submitted to you.
(3) For financial and valuation purposes, you may accept a complete copy of the Federal income tax return filed by the Portfolio Concern (or its proprietor) in lieu of financial statements, but only if appropriate for the size and type of the business involved.
(4) The requirements in this paragraph (b) do not apply when you acquire securities from an underwriter in a public offering (see § 108.825). In that case, you must keep copies of all reports furnished by the Portfolio Concern to the holders of its securities.
(1) The social, economic or community development benefits achieved as a result of the Financing;
(2) How and to what extent such benefits fulfilled the goals of your comprehensive business plan and Participation Agreement;
(3) Whether you consider the Financing or the results of the Financing to have fulfilled the objectives of the NMVC program; and
(4) Whether, and if so, how you achieved accountability to the residents of the LI Area in connection with that Financing.
For each Financing you make (excluding guarantees), you must submit a Portfolio Financing Report on SBA Form 1031 within 30 days of the closing date.
You must determine the value of your Loans and Investments in accordance with § 108.503. You must report such valuations to SBA within 90 days of the end of the fiscal year in the case of annual valuations, and within 30 days following the close of other reporting periods. You must report material adverse changes in valuations at least quarterly, within thirty days following the close of the quarter.
(1) The proceedings covered by this paragraph (c) include any action by you, or by your security holder(s) in a personal or derivative capacity, against an officer, director, Investment Adviser or other Associate of yours for alleged breach of official duty.
(2) SBA may require you to submit copies of the pleadings and other documents SBA may specify.
(3) Where proceedings have been terminated by settlement or final judgment, you must promptly advise SBA of the terms.
(4) This paragraph (c) does not apply to collection actions or proceedings to enforce your ordinary creditors' rights.
All NMVC companies must submit to annual examinations by or at the direction of SBA for the purpose of evaluating regulatory compliance.
You must make all books, records and other pertinent documents and materials available for the examination, including any information required by the examiner under § 108.620(c). In addition, the agreement between you and the independent public accountant performing your audit must provide that any information in the accountant's working papers be made available to SBA upon request.
(1) If you have no outstanding regulatory violations at the time of the commencement of the examination and SBA did not identify any violations as a result of the most recent prior examination, you will receive a 15% discount on your base fee; and
(2) If you were fully responsive to the letter of notification of examination (that is, you provided all requested documents and information within the time period stipulated in the notification letter in a complete and accurate manner, and you prepared and had available all information requested by the examiner for on-site review), you will receive a 10% discount on your base fee.
You are permitted to provide financial assistance and management services only to a Small Business. To determine whether an applicant meets the size standards for a Small Business, you may use either the financial size standards in § 121.301(c)(1) of this chapter or the industry standard covering the industry in which the applicant is primarily engaged, as set forth in § 121.301(c)(2) of this chapter.
(1) At least 80 percent of your Portfolio Concerns must be Low-Income Enterprises in which you have an Equity Capital Investment; and
(2) For all Financings you have extended, you must have invested at least 80 percent (in total dollars) in Equity Capital Investments in Low-Income Enterprises.
(i) It is not engaged in a regular and continuous business operation (for purposes of this paragraph (b), the mere receipt of payments such as dividends, rents, lease payments, or royalties is not considered a regular and continuous business operation); or
(ii) Its employees are not carrying on the majority of day to day operations, and the company does not provide effective control and supervision, on a day to day basis, over persons employed under contract; or
(iii) It passes through substantially all of the proceeds of the Financing to another entity.
(i) Any business classified under subsector 5311 (Lessors of Real Estate) of the NAICS Manual; or
(ii) Any business listed under subsector 5312 (Offices of Real Estate Agents and Brokers) unless at least 80 percent of the revenue is derived from non-Affiliate sources.
(2) You are not permitted to finance a business, regardless of NAICS classification, if the Financing is to be used to acquire or refinance real property, unless the Small Business:
(i) Is acquiring an existing property and will use at least 51 percent of the usable square footage for an eligible business purpose; or
(ii) Is building or renovating a building and will use at least 67 percent of the usable square footage for an eligible business purpose; or
(iii) Occupies the subject property and uses at least 67 percent of the usable square footage for an eligible business purpose.
(1) The assets of the business are to be reduced or consumed, generally without replacement, as the life of the business progresses, and the nature of the business requires that a stream of cash payments be made to the business's financing sources, on a basis associated with the continuing sale of assets. Examples include real estate development projects and oil and gas wells; or
(2) The primary purpose of the Financing is to fund production of a single item or defined limited number of items, generally over a defined production period, and such production will constitute the majority of the activities of the Small Business. Examples include motion pictures and electric generating plants.
(i) The funds will be used substantially for a foreign operation; or
(ii) At the time of the Financing or within one year thereafter, more than 49 percent of the employees or tangible assets of the Small Business are located outside the United States (unless you can show, to SBA's satisfaction, that the Financing was used for a specific domestic purpose).
(1) To purchase stock in or provide capital to a NMVC Company or SBIC; or
(2) To repay an indebtedness incurred for the purpose of investing in a NMVC Company or SBIC.
(1) Provide Financing to any of your Associates, except for a Small Business that satisfies all of the following conditions:
(i) Your Associate relationship with the Small Business is described by paragraph (8) or (9) of the definition of Associate in § 108.50;
(ii) No Person triggering the Associate relationship identified in paragraph (a)(1)(i) of this section is a Close Relative or Secondary Relative of any Person described in paragraph (1), (2), (4), or (5) of the definition of Associate in § 108.50; and
(iii) No single Associate of yours has either a voting interest or an economic interest in the Small Business exceeding 20 percent, and no two or more of your Associates have either a voting interest or an economic interest exceeding 33 percent. Economic interests shall be computed on a fully diluted basis, and both voting and economic interests shall exclude any interest owned through the NMVC Company.
(2) Provide Financing to an Associate of another NMVC Company if one of your Associates has received or will receive any direct or indirect Financing or a Commitment from that NMVC Company or a third NMVC Company (including Financing or Commitments received under any understanding, agreement, or cross dealing, reciprocal or circular arrangement).
(3) Borrow money from:
(i) A Small Business Financed by you;
(ii) An officer, director, or owner of at least a 10 percent equity interest in such business; or
(iii) A Close Relative of any such officer, director, or equity owner.
(4) Provide Financing to a Small Business to discharge an obligation to your Associate or free other funds to pay such obligation. This paragraph (a)(4) does not apply if the obligation is to an Associate Lending Institution and is a line of credit or other obligation incurred in the normal course of business.
(1) Borrow money from any Person described in paragraph (a)(3) of this section.
(2) Receive from a Small Business any compensation in connection with Assistance you provide (except as permitted under § 108.825(c)), or anything of value for procuring, attempting to procure, or influencing your action with respect to such Assistance.
(i) Your Associate is a Lending Institution that is providing financing under a credit facility in order to meet the operational needs of the Small Business, and the terms of such financing are usual and customary.
(ii) Your Associate invests in the Small Business on the same terms and conditions and at the same time as you.
(iii) Both you and your Associate are NMVC companies.
(1) Have any other direct or indirect financial interest in the Portfolio Concern that exceeds, or has the potential to exceed, the percentages of the Portfolio Concern's equity set forth in paragraph (a)(1) of this section.
(2) Receive any income or anything of value from the Portfolio Concern unless it is for your benefit, with the exception of director's fees, expenses, and distributions based upon the Associate's ownership interest in the Concern.
(1) They participate in the Financing on a
(2) SBA gives its prior written approval; or
(3) The options received are compensation for service as a member of
(a) Without SBA's prior written approval, you may provide Financing or a Commitment to a Small Business only if the resulting amount of your aggregate outstanding Financings and Commitments to such Small Business and its Affiliates does not exceed 10 percent of the sum of:
(1) Your Regulatory Capital as of the date of the Financing or Commitment; plus
(2) The total amount of leverage projected in your participation agreement with SBA; plus
(3) Any permitted Distribution(s) you made during the five years preceding the date of the Financing or Commitment which reduced your Regulatory Capital.
(b) For the purposes of paragraph (a) of this section, you must measure each outstanding Financing at its current cost plus any amount of the Financing that was previously written off.
(1) Subject to the overline limitations of § 108.740, you may provide additional Financing to the concern up to the time it makes a public offering of its securities.
(2) Even after the concern makes a public offering, you may exercise any stock options, warrants, or other rights to purchase Equity Securities which you acquired before the public offering, or fund Commitments you made before the public offering.
(1) Retain your investment; and
(2) Provide additional Financing to the Portfolio Concern to the extent necessary to protect against the loss of the amount of your original investment, subject to the overline limitations of § 108.740.
You may not, inadvertently or otherwise:
(a) Become a general partner in any unincorporated business; or
(b) Become jointly or severally liable for any obligations of an unincorporated business.
(1) You would become subject to State regulation as an insurance, guaranty or surety business; or
(2) The amount of the guaranty plus any direct Financings to the Small Business exceed the overline limitations of § 108.740, except that a pledge of the Equity Securities of the issuer or a subordination of your lien or creditor position does not count toward your overline.
(1) You purchase such securities within 90 days of the date the public offering is first made;
(2) Your purchase price is no more than the original public offering price; and
(3) The amount paid by you for the securities (less ordinary and reasonable underwriting charges and commissions) has been, or will be, paid to the Small Business, and the underwriter certifies in writing that this requirement has been met.
Except with SBA's prior written approval, you are not permitted to dispose of assets (including assets acquired in liquidation) to any Associate. As a prerequisite to such approval, you must demonstrate that the proposed terms of disposal are at least as favorable to you as the terms obtainable elsewhere.
(1) You or your Associate have entered into a written contract with the Small Business;
(2) The fees charged are for services actually performed;
(3) Services are provided on an hourly fee, project fee, or other reasonable basis;
(4) You can demonstrate to SBA, upon request, that the rate does not exceed the prevailing rate charged for comparable services by other organizations in the geographic area of the Small Business; and
(5) At least 50 percent of any management services fees paid to your Associate by a Small Business for management services provided by the Associate is allocated back to you for your benefit.
(2) Your Associate may charge market rate investment banking fees to a Small Business on that portion of a Financing that you do not provide.
To be eligible for Leverage, you must be in compliance with the Act, the regulations in this part, and your Participation Agreement.
There is no fee for the issuance of Debentures by a NMVC Company.
If you issue Leverage, you automatically agree to the terms and conditions in § 108.1810 as it exists at the time of
The face amount of a NMVC Company's outstanding Debentures may not exceed 150 percent of its Leverageable Capital.
(a) If you submit a request for a draw against SBA's Leverage commitment more than 90 days since your submission of an annual Form 468 or a Form 468 (Short Form), you must:
(1) Give SBA a financial statement on Form 468 (Short Form); and
(2) File a statement of no material adverse change in your financial condition since your last filing of Form 468.
(b) You will not be eligible for a draw if you are not in compliance with this section.
(i) SBA determines that your outstanding violations are of non-substantive provisions of the Act or regulations or your Participation Agreement and that you have not repeatedly violated any non-substantive provisions; or
(ii) You have agreed with SBA on a course of action to resolve your violations and such agreement does not prevent you from issuing Leverage.
(1) A statement certifying that there has been no material adverse change in your financial condition since your last
(2) If your request is submitted more than 30 days following the end of your fiscal year, but before you have submitted your annual filing of SBA Form 468 (Long Form) in accordance with § 108.630(a), a preliminary unaudited annual financial statement on SBA Form 468 (Short Form).
(3) A statement certifying that to the best of your knowledge and belief, you are in compliance with all provisions of the Act and SBA regulations (i.e., no unresolved regulatory or statutory violations) and your Participation Agreement, or a statement listing any specific violations you are aware of. Either statement must be executed by one of the following:
(i) An officer of the NMVC Company;
(ii) An officer of a corporate general partner of the NMVC Company;
(iii) An individual who is authorized to act as or for a general partner of the NMVC Company; or
(iv) An individual who is authorized to act as or for a member-manager of the NMVC Company.
(4) A statement that the proceeds are needed to fund one or more particular Small Businesses or to provide liquidity for your operations. If required by SBA, the statement must include the name and address of each Small Business, and the amount and anticipated closing date of each proposed Financing.
(2) If SBA required you to provide information concerning a specific planned Financing under paragraph (d)(4) of this section, and such Financing has not closed within 60 calendar days after the anticipated closing date, you must give SBA a written explanation of the failure to close.
(3) If you do not comply with this paragraph (e), you will not be eligible for additional draws. SBA may also determine that you are not in compliance with the terms of your Leverage under § 108.1810.
(1) The sale of your Debenture to a third-party at a rate approved by SBA; and
(2) The purchase of your security from the third-party and the pooling of your security with other securities with the same maturity date.
(a) The rights, if any, of a NMVC Company to prepay any Debenture is established by the terms of such security, and no such right is created or denied by the regulations in this part.
(b) SBA's rights to purchase or prepay any Debenture without premium are established by the terms of the Guaranty Agreement relating to the Debenture.
(c) Any prepayment of a Debenture pursuant to the terms of the Guaranty Agreement relating to such security shall reduce the SBA guarantee of timely payment of principal and interest on a TC in proportion to the amount of principal that such prepaid Debenture represents in the Trust or Pool backing such TC.
(d) SBA shall be discharged from its guarantee obligation to the holder or holders of any TC, or any successor or transferee of such holder, to the extent of any such prepayment. whether or not such successor or transferee shall have notice of any such prepayment.
(e) Interest on prepaid Debentures shall accrue only through the date of prepayment.
(f) In the event that all Debentures constituting a Trust or Pool are prepaid, the TCs backed by such Trust or Pool shall be redeemed by payment of the unpaid principal and interest on the TCs; provided, however, that in the case of the prepayment of a Debenture pursuant to the provisions of the Guaranty Agreement relating to the Debenture, the CRA shall pass through pro rata to the holders of the TCs any such prepayments including any prepayment penalty paid by the obligor NMVC Company pursuant to the terms of the Debenture.
(i) Selecting qualified entities to become pool or Trust assemblers ("Poolers").
(ii) Receiving guaranteed Debentures as well as negotiating the terms and conditions of sales or periodic offerings of Debentures and/or TCs on behalf of NMVC companies.
(iii) Directing and coordinating periodic sales of Debentures and/or TCs.
(iv) Arranging for the production of Offering Circulars, certificates, and such other documents as may be required from time to time.
(i) Establish performance criteria for Poolers.
(ii) Monitor and evaluate the financial markets to determine those factors that will minimize or reduce the cost of funding Debentures.
(iii) Monitor the performance of the Selling Agent, Poolers, CRA, and the Trustee.
(iv) Perform such other functions as SBA, from time to time, may prescribe.
(i) Form an SBA-approved Pool or Trust;
(ii) Issue the TCs in the form prescribed by SBA;
(iii) Transfer the TCs upon the sale of original issue TCs in any secondary market transaction;
(iv) Receive payments from NMVC companies;
(v) Make periodic payments as scheduled or required by the terms of the TCs, and pay all amounts required to be paid upon prepayment of Debentures;
(vi) Hold, safeguard, and release all Debentures constituting Trusts or Pools upon instructions from SBA;
(vii) Remain custodian of such other documentation as SBA shall direct by written instructions;
(viii) Provide for the registration of all pooled Debentures, all Pools and Trusts, and all TCs;
(ix) Perform such other functions as SBA may deem necessary to implement the provisions of this section.
(1) If such broker's or dealer's authority to engage in the securities business has been revoked or suspended by a supervisory agency. When such authority has been suspended, SBA will suspend such broker or dealer for the duration of such suspension by the supervisory agency.
(2) If such broker or dealer has been indicted or otherwise formally charged with a misdemeanor or felony bearing on its fitness, such broker or dealer may be suspended while the charge is pending. Upon conviction, participation may be terminated.
(3) If such broker or dealer has suffered an adverse final civil judgment holding that such broker or dealer has committed a breach of trust or violation of law or regulation protecting the integrity of business transactions or relationships, participation in the market for Debentures or TCs may be terminated.
The CRA and any broker, dealer and Pool or Trust assembler operating under the regulations in this part shall make all books, records and related materials associated with Debentures and TCs available to SBA for review and copying purposes. Such access shall be at such party's primary place of business during normal business hours.
Upon such conditions and for such consideration as it deems reasonable, SBA may sell, assign, transfer, or otherwise dispose of any Debenture held by or on behalf of SBA. Upon notice by SBA, a NMVC Company will make all payments of principal and interest as
SBA may, upon such conditions and for such consideration as it deems reasonable, collect or compromise all claims relating to obligations held or guaranteed by SBA, and all legal or equitable rights accruing to SBA.
If SBA agrees to guarantee a NMVC Company's Debentures, such guarantee will be unconditional, irrespective of the validity, regularity or enforceability of the Debentures or any other circumstances that might constitute a legal or equitable discharge or defense of a guarantor. Pursuant to its guarantee, SBA will make timely payments of principal and interest on the Debentures.
(1) Without notice, presentation or demand, the entire indebtedness evidenced by your Debentures, including accrued interest, and any other amounts owed SBA with respect to your Debentures, is immediately due and payable; and
(2) You automatically consent to the appointment of SBA or its designee as your receiver under section 363(c) of the Act.
(1) SBA may declare the entire indebtedness evidenced by your Debentures, including accrued interest. and/or any other amounts owed SBA with respect to your Debentures, immediately due and payable; and
(2) SBA may avail itself of any remedy available under the Act, specifically including institution of proceedings for the appointment of SBA or its designee as your receiver under section 363 (c) of the Act.
(i) Distributions permitted under § 108.585; and
(ii) Payments from Retained Earnings Available for Distribution based on either the shareholders' or members' pro-rata interests or the provisions for profit distributions in your partnership agreement, as appropriate.
(i) SBA may declare the entire indebtedness evidenced by your Debentures, including accrued interest, and/ or any other amounts owed SBA with respect to your Debentures, immediately due and payable; and
(ii) SBA may avail itself of any remedy available under the Act, specifically including institution of proceedings for the appointment of SBA or
(2) SBA may invoke the remedies in paragraph (g)(1) of this section only if:
(i) It has given you at least 15 days to cure the default(s); and
(ii) You fail to cure the default(s) to SBA's satisfaction within the allotted time.
(1) With respect to a Corporate NMVC Company, upon written notice, to require you to replace, with individuals approved by SBA, one or more of your officers and/or such number of directors of your board of directors as is sufficient to constitute a majority of such board; or
(2) With respect to a Partnership NMVC Company or an LLC NMVC Company, upon written notice, to require you to remove the person(s) responsible for such occurrence and/or to remove the general partner or manager of the NMVC Company, which general partner or manager shall then be replaced in accordance with NMVC Company's Articles by a new general partner or manager approved by SBA; and/or
(3) With respect to a Corporate or Partnership or LLC NMVC Company, to obtain the appointment of SBA or its designee as your receiver under section 363(c) of the Act for the purpose of continuing your operations. The appointment of a receiver to liquidate a NMVC Company is not within such consent, but is governed instead by the relevant provisions of the Act.
(1) The sum of Undistributed Net Realized Earnings, as reported on SBA Form 468, and Includible Non-Cash Gains.
(2) Unrealized Gain (Loss) on Securities Held.
(2) Add together your Undistributed Net Realized Earnings, your Includible Non-cash Gains, and either your Unrealized Loss on Securities Held or your Adjusted Unrealized Gain.
(3) If the sum in paragraph (c)(2) of this section is zero or greater, your Capital Impairment Percentage is zero.
(4) If the sum in paragraph (c)(2) of this section is less than zero, drop the negative sign, divide by your Regulatory Capital (excluding Treasury Stock), and multiply by 100. The result is your Capital Impairment Percentage.
(2) Determine your Unrealized Appreciation on Publicly Traded and Marketable securities. This is your "Class I Appreciation".
(3) Determine your Unrealized Appreciation on securities that are not Publicly Traded and Marketable and meet the following criteria, which must be substantiated to the satisfaction of SBA (this is your "Class 2 Appreciation"):
(i) The Small Business that issued the security received a significant subsequent equity financing by an investor whose objectives were not primarily strategic and at a price that conclusively supports the Unrealized Appreciation;
(ii) Such financing represents a substantial investment in the form of an arm's length transaction by a sophisticated new investor in the issuer's securities; and
(iii) Such financing occurred within 24 months of the date of the Capital Impairment computation, or the Small Business' pre-tax cash flow from operations for its most recent fiscal year was at least 10 percent of the Small Business' average contributed capital for such fiscal year.
(4) Perform the appropriate computation from the table in § 107.1840(d)(4) of this chapter.
(5) Reduce the gain computed in paragraph (d) (4) of this section by your estimate of related future income tax expense. Subject to any adjustment required by paragraph (d)(6) of this section, the result is your Adjusted Unrealized Gain for use in paragraph (c)(2) of this section.
(6) If any securities that are the source of either Class 1 or Class 2 Appreciation are pledged or encumbered in any way, you must reduce the Adjusted Unrealized Gain computed in paragraph (d)(5) of this section by the amount of the related borrowing or other obligation, up to the amount of the Unrealized Appreciation on the securities.
You may not terminate your participation as a NMVC Company without SBA's prior written approval. Your request for approval must be accompanied by an offer of immediate repayment of all of your outstanding Leverage (including any prepayment penalties thereon), or by a plan satisfactory to SBA for the orderly liquidation of the NMVC Company.
SBA's failure to exercise or delay in exercising any right or remedy under the Act or the regulations in this part does not constitute a waiver of such right or remedy. SBA's failure to require you to perform any term or provision of your Leverage does not affect SBA's right to enforce such term or provision. Similarly, SBA's waiver of, or failure to enforce, any term or provision of your Leverage or of any event or condition set forth in § 108.1810 does not constitute a waiver of any succeeding breach of such term or provision or condition.
(1) The proposed action is fair and equitable; and
(2) The exemption requested is reasonably calculated to advance the best interests of the NMVC program in a manner consistent with the policy objectives of the Act and the regulations in this part.
The legality of a transaction covered by the regulations in this part is governed by the regulations in this part in effect at the time the transaction was consummated, regardless of later changes. Nothing in this part bars SBA enforcement action with respect to any transaction consummated in violation of provisions applicable at the time, but no longer in effect.
(1) A substantial number of Low-Income Individuals reside in that census tract (or equivalent county division).
(2) As adequately supported by studies or other analyses or reliable data, that census tract (or equivalent county division) has a pattern of unmet needs for investment capital.
(3) As adequately supported by studies or other analyses or reliable data, that census tract (or equivalent county division) has indications of economic distress.
(2) In making a final decision on whether to designate a particular census tract (or equivalent county division) as an additional LI Area, SBA will consider evidence submitted by any requester, SBA's own research, any public comments submitted, and any other information deemed relevant by SBA.
(3) If SBA designates a particular census tract (or equivalent county division) as an additional LI Area, SBA will publish a notice in the
An SSBIC is eligible to apply for an Operational Assistance grant if:
(a) It intends to increase its Regulatory Capital, as in effect on December 21, 2000, and to make Low-Income Investments in the amount of such increase;
(b) It intends to raise binding commitments for contributions in cash or in-kind, and/or to purchase an annuity, in an amount not less than 30 percent of the intended increase in its Regulatory Capital described in paragraph (a) of this section; and
(c) It has a plan describing how it intends to use the requested grant funds to provide Operational Assistance to Smaller Enterprises in which it has made or expects to make Low-Income Investments after December 21, 2000.
An SSBIC must pay to SBA a grant issuance fee of $5,000. An SSBIC must submit this fee in advance, at the time of application submission. If SBA does not award a grant to the SSBIC, SBA will refund this fee to the SSBIC.
Each application submitted by an SSBIC for an Operational Assistance grant must contain the information specified in the application packet provided by SBA, including the following information:
(1) An estimate of the social, economic, and community development benefits to be created within identified LI Areas over the next five years or more as a result of its activities;
(2) A description of the criteria to be used to measure the benefits created as a result of its activities; and
(3) A discussion about the amount of such benefits created that it will consider to constitute successfully meeting the objectives of the NMVC program.
SBA will evaluate and select an SSBIC for an Operational Assistance grant award under the NMVC program solely at SBA's discretion, based on SBA's review of the SSBIC's application materials, interviews or site visits with the SSBIC (if any), and information in SBA's records relating to the SSBIC's regulatory compliance status and track record as an SSBIC. SBA's evaluation and selection process is intended to ensure that SSBIC requests are evaluated on a competitive basis and in a fair and consistent manner. SBA will evaluate and select SSBICs for an Operational Assistance grant award by considering the following criteria:
(a) The strength of the SSBIC's application, including the strength of its proposal to provide Operational Assistance to Smaller Enterprises in which it intends to invest;
(b) The SSBIC's regulatory compliance status and past track record in being able to accomplish program goals through its investment activity;
(c) The likelihood that and the time frame within which the SSBIC will be able to raise the Regulatory Capital it intends to raise and obtain the matching resources described in § 108.2005(b) and (g);
(d) The need for Low-Income Investments in the LI Areas in which the SSBIC intends to invest;
(e) The SSBIC's demonstrated understanding of the markets in the LI Areas in which it intends to invest;
(f) The extent to which the activities proposed by the SSBIC will promote economic development and the creation of wealth and job opportunities in the LI Areas in which it intends to
(g) The likelihood that the SSBIC will fulfill the goals described in its application and meet the objectives of the NMVC program; and
(h) The strength of the SSBIC's application compared to applications submitted by other SSBICs and by Applicants intending to invest in the same or proximate LI Areas.
An SSBIC selected for an Operational Assistance grant award will receive a grant award only if, by a date established by SBA, it increases its Regulatory Capital in the specific amount set forth in its application, pursuant to § 108.2004(a), and raises matching resources for the grant in the amount required by § 108.2030(d)(2).
(2) Neither a NMVC Company nor a SSBIC may use funds or other resources that it has used to satisfy a legal requirement for obtaining funds under any other Federal program, to satisfy the matching resources requirements described in this part.
(3) A portion of Private Capital may be designated as matching resources if the designated funds are used to purchase an annuity pursuant to paragraph (c)(2)(iv) of this section or are otherwise segregated in a manner acceptable to SBA.
(2) Matching resources may be in the form of:
(i) Cash;
(ii) In-kind contributions;
(iii) Binding commitments for cash or in-kind contributions that may be payable over a multiyear period acceptable to SBA (but not to exceed the term of the Operational Assistance grant from SBA and in no event more than 10 years); and/or
(iv) An annuity, purchased with funds other than Regulatory Capital, from an insurance company acceptable to SBA and that may be payable over a multiyear period acceptable to SBA (but not to exceed the term of the Operational Assistance grant from SBA and in no event more than 10 years).


text:
- Parent Category: News
Vermilion officials talk with potential nursing home buyers
Officials in Vermilion County meet today with representatives of two potential buyers of the county-owned Vermilion Manor Nursing Home.
The meetings, according to Vermilion County Board Chairman Gary Weinard, is the first meeting between county officials and potential buyers since the county received five proposals earlier this month.
Weinard said the meeting is preliminary and will allow county officials to explore the top two candidates' real interest in buying the nursing home.
Weinard said. "We want to be sure that a buyer fits the situation in terms of our staff and residents and its presence in the community."
In a November referendum, voters granted the county the authority to sell the nursing home, which has struggled financially off and on for many years.
Weinard said the county received five offers to buy the nursing home but only two are from reputable companies that are also willing to meet the county's stipulations, including continuing to run the facility as a nursing home and retaining the residents and staff.

subset: commoncrawl


text:
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Joined: 18 Oct 2004
Posts: 1654
Location: Within view of Elliot Bay, The Olympics and every ship in the Sound
Posted: Fri Jan 07, 2005 4:25 pm
Post subject:
I will have to find that cookbook, it sounds great. Let's cook!!
"It's watery....and yet there's a smack of ham."
"It's hot ham water."
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Joined: 13 Nov 2004
Posts: 899
Location: Gold Coast Australia
Posted: Tue Jan 18, 2005 9:55 pm
Post subject:
While browsing my bookshelves this morning I came across a book I read several years ago which is part of the Modern Library Food Series. The series has been edited by Ruth Reichl and lists 7 other foodie books. The one I have is called The Passionate Epicure By Marcel Rouff . It is an English translation of the original French. The main character Dodin-Bouffant is based loosley on Anthelme Brillat-Savarin.
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Joined: 18 Jan 2005
Posts: 13
Location: Culver City, CA & Atlanta, GA
Posted: Wed Jan 19, 2005 12:02 am
Post subject:
Any of Toni Morrison's novels will make you hunger for the taste of down-home cooking! Food is such an integral part of the culture about which she writes.
Peruse the first chapter of
and you'll read about a presentation of shrimp so elaborately described, you'll be on your way to the seafood market by the end of the chapter!
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Joined: 01 Jan 2005
Posts: 1
Location: nyc
Posted: Wed Jan 19, 2005 1:05 am
Post subject: foodie books
My favorite foodie book is "When French Women Cook" by Madeleine Kamman, first published in 1976. It is a lovely and personal memoir of cooking through stories about the women who taught Madeleine to cook as a young girl (before and during the war). Their personalities come through in the recipes and stories they share. It truly is a remembrance of France of days gone by; I read it again and again. It's a shame not too many people seem familiar with this one. To read it is to savor it. What a treasure.
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Joined: 27 Dec 2004
Posts: 200
Location: cambridge, ma.
Posted: Wed Jan 19, 2005 1:35 am
Post subject:
She is well known as hewr book. I met her when she had a restaurant here and was very snappy and I think that is why she left. Too bad her food was great.
Sharing food with another human being is an intimate act that should not be indulged in lightly
..................................MFK Fisher
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Joined: 13 Nov 2004
Posts: 899
Location: Gold Coast Australia
Posted: Wed Jan 19, 2005 2:06 am
Post subject:
Petite gourmande - I've just ordered (from
When French Women Cook. It is out of print but they have lots of second hand copies available. ...and not expensive. Thanks for the recommendation.
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Joined: 30 Nov 2004
Posts: 30
Location: France
Posted: Wed Jan 19, 2005 5:00 pm
Post subject:
the harry potter books have great depictions of food.
And the movies as well. I remember when I saw the Sorcerer's Stone in the end of the afternoon and the halloween feast was unbearable:so many gorgoeous dishes...
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Joined: 26 Jan 2005
Posts: 1
Posted: Wed Jan 26, 2005 7:29 pm
Post subject: Food/Recipe Novel
Amanda Hesser wrote an entertaining novel/cookbook called Cooking for Mr. Latte. She was (is?) a food editor for a NYC newspaper.
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Joined: 27 Dec 2004
Posts: 200
Location: cambridge, ma.
Posted: Thu Feb 03, 2005 7:12 pm
Post subject:
Ruth Reichl has edited a wonderful book; "Remembrance of Things PariS, sixty years of writing from Gourmet."
Jaques Pépin's charming auto-biography, "The Apprentice."
Sharing food with another human being is an intimate act that should not be indulged in lightly
..................................MFK Fisher
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mel p
Joined: 29 Sep 2004
Posts: 10
Location: hamburg, germany
Posted: Thu Feb 10, 2005 6:15 pm
Post subject: oh, there are heaps of them...
what? no Elizabeth David fans? i love
an omelette and a glass of wine
, and her "real" cookbooks (french provincial cooking et al) are also very entertaining and readable.
"kitchen confidential", of course, jeffrey steingarten's books,
"looking for flavour"
by barbara santich- a real winner... mk fisher, of course,
i totally agree with the laura ingalls fans- i used to love the stories of rows of preserved fruit, tapping the maple syrup from the trees, etc. - so different from my own childhood.
bugger! there are heaps more favourites stored away in boxes back in australia. why can't i remember what they all are????
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Joined: 10 Feb 2005
Posts: 20
Location: New York City, USA
Posted: Fri Feb 11, 2005 11:07 pm
Post subject:
Mmmm, what a wonderful topic.
Here are some titles that come to mind as I wade happily though this thread. Theyre not all food books per se but they all brought me great joy when they spoke of food.
A Tree Grows in Brooklyn
, Betty Smith. My favorite book ever and I can still remember the first time I read it, at age 11, a tattered library copy with an ad for war bonds on the back. Wonderful in a million ways, including the way she writes about food. Francie buying bread and seeing the old man with a toe poking through his shoe the amazing things her mother Katie can make with stale bread the way Francie sits with her hand around her cup of coffee throughout her meal and then pours it down the sink (her Aunt Sissy says theyre too poor to waste the coffee like that, and Katie says that if pouring a cup of coffee down the drain makes Francie feel rich for even a moment, she gets to have that).
Home Cooking
, Laurie Colwin. Another fine memoir/cookbook. I felt so at home reading this Laurie wrote so lovingly about food but also believed it could be easy to have a life full of cooking and eating with people you love. Thats all I want really
The Namesake
, Jhumpa Lahiri. There are great descriptions of food throughout the book, from the very beginning when Ashima tries to recreate a Calcutta snack food in her Boston kitchen during her pregnancy, to the Bengali food that she cooks throughout the book, to the wonderful descriptions of cooking and eating when Gogol is dating Maxine (in Chelsea and in New Hampshire).
Sassafrass, Cypress, & Indigo
, Ntozake Shange. This book is magic. Theres nothing in it that didnt woo my senses its full of music and poetry, both literally and in the voices of the characters. Food plays a central role throughout and there are some incredible recipes has anyone ever tried any of them? I havent but always mean to
Dont Lets Go to the Dogs Tonight
, Alexandra Fuller. Although Fullers voice is quite different from Shanges, theres something similar about them like, Im not sure you can write this way about a place unless you love it deeply. In this case its southern Africa, where Fuller grew up. There are great food passages throughout, from the bread and curling butter her mother offers to the earnest American missionaries to the Christmas pudding to the stew that a very poor family shares with Fuller. This was one of my favorite reads from last year, the sort that you mourn in finishing. I was so wrapped up in the world she lived in as a child and had quite a hard time closing the book and realizing I was in fact in New York City, not Rhodesia.
Ive yet to read any MFK Fisher and want to badly. Ive been enjoying the thread on her books as well. I cant wait to hear more suggestions from all yall!
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Joined: 13 Nov 2004
Posts: 899
Location: Gold Coast Australia
Posted: Sat Feb 12, 2005 6:55 am
Post subject:
Wow Lisa I have not heard of any of those books. I'll be at the library when the doors open tomorrow morning. I particularly like the sound of the Alexandra Fuller book.
You will love MFK Fisher.
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Joined: 01 Feb 2005
Posts: 51
Location: Canada
Posted: Sat Feb 12, 2005 1:50 pm
Post subject:
I too really loved Laurie Colwin's books, especially "Home cooking" and Madeleine Kamman's "When French Women Cook A Gastronomic Memoir", as well as Steingarten and Bourdain.
Peter Mayle's books are terrific: "A Year in Provence", "French Lessons: Adventures with Knife, Fork, and Corkscrew", "Acquired Tastes", "Encore Provence" etc. etc.
And I also absolutely loved "Under the Tuscan Sun" by Frances Mayes (didn't see the movie of the same name though - I gather the screenwriters decided that her story wasn't interesting enough and changed it....)
Thanks to all of you for naming books I'm not familiar with - I have several on order now!
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mel p
Joined: 29 Sep 2004
Posts: 10
Location: hamburg, germany
Posted: Sat Feb 12, 2005 7:43 pm
Post subject:
lisa: Sassafrass, Cypress, & Indigo!!! i'd totally forgotten about that book: it's great!
amazingly it's actually available at amazon in germany (lots of things are not). i'm
ordering one the next time i've got few spare euros!!!
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Joined: 23 Feb 2005
Posts: 12
Location: Keene NH, USA
Posted: Fri Feb 25, 2005 1:04 am
Post subject:
On Food and Cooking: Harold McGee: This is one of the most spectacular books ever writen on food. Well its writen on paper not on food, but anyway it delves deep into the science that is the foundation of the cullinary arts. It can be a challenge to get through at times, but I find it so enlightening that I keep checking it out from the library.
Any thing by Alton Brown, this man is my hero, and a large part of the reason that I developed my passion for food. All hail AB
Whiped, Beaten, Denatured: Journey of an aspiring chef.
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text:
Hey ENOpians!
A few months ago, a guy named Daniel Vergara won our photo contest with this awesome pic…
Since then, he has been traveling around the world and sending us photographs to prove it!
His travels have taken him from South America to Europe and everywhere in between. Here are a few of his shots :-
"Two hours after i arrived to Brasil, I was in this beach watching this guys playing a mix between soccer and volleyball. Who needs a net when you have a couple of bikes instead? The palm trees back there were the perfect place to put my SingleNest."
"Cabo Verde, a former Portuguese colony, is an island in front of Senegal shore (yeah, some pirates around there). First time on land after almost a week in the sea. So, with some other crew members we pay for a local taxi to take us to a basic trip around the place. My hammock in the hand. First we stopped next to an old fortress, in the top of a hill. With a couple of friends we went to look for some place to put the single nest, since there are almost no trees in the Island. So, we found to antenas. Voila."
HaHa we love this pic from Gibraltar! Daniel found a great guard to keep his SingleNest safe 🙂
We'll keep you updated with future travels from our ENO Around the World champ, Vergara. And we'd love to see yours too! Send them to us HERE!


text:
Something strange is happening with Squidly.
He started out with all the best intentions.
- Level normally
- Explore Azeroth
- Soak up all the quests and instances
But I have just realized that this will never be.
Why so dear Squid?
Well there are lots of factors that mean I am hop, skip and jumping all sorts of content.
My Generous Predecessor
Let's start with the obvious.
Gnomeaggedon has forsaken upgrades to equip the squid with the latest in Gnomish leveling technology.
Those heirloom items seem quite innocent at first. They allow you to complete the quests and explore Azeroth with ease.
They also allow you to skip 20% of the content you would endure at each level. Doesn't seem like much up front, but it all adds up on the XP bar and subtracts from the quest log.
I was joking with my favorite tank of the moment that I was doing my 3 quests for the Hellfire Peninsula.
Tank asks: Why only 3 quests?
Squid replies: Well, currently it feels like I only need to do 3 quests and it's time to change zones.
This is a slight exaggeration of course, but it's not that far from the truth. I do a little research, identify the best items, then just cherry pick those quests or instances.
Sometimes I am forced to do prerequisite quests, but I am leaving a trail of unacknowledged quests behind me.
It probably doesn't help that I have BiS items in 5 slots thanks to the heirlooms. That's less time I need to spend anywhere.
End Game Instances and Raids
More to the point mid-game or old end game instances.
There was a time when you had to grind BRD for the experience and gear. Now you just hit 68, port to Outland and you have gear and experience(s) that leave the old world raids and instances in the dust.
Right now Squidly is staring level 64 in the eyes.
Time to prepare for the heroic Outland instances I think to myself…
Or not!
Once again, less than 12 months ago, I needed to consider my gear progression carefully. I wanted the best gear from quests and instances so I could tackle those heroics for badges to open the doors to Kara.
Now, I am focused on what I can pick up by 67 or 68 so I can jump on a boat and sail to Northrend.
Funny, as I was really looking forward to pitting my Shaman skills against the Outland heroic bosses… But now that I can sniff the sea, even from Outland, the yearning to set sail has struck.
Lack of Achievement
The Achievement frenzy that took hold of Gnomeaggedon's soul just isn't present in Squidly.
Oh yeah I still love it when they pop up and I'm not afraid to share them with you, but I don't care about clearing the Azeroth instances, I'm not concerned about ticking off the heroic achievements in Outland.
I just can't wait for the secret door before the Outland boss' room that will take me away to lend my totems to the war against the Scourge.
Epic Mounts & Flying Mounts
Talk about skipping content.
Why fight your way to your destination when you can just ride real fast, or better yet fly to your end goal.
In fact I would happily compare the change in leveling speed to that you experience when you 1st upgrade to an epic land mount, or to an epic flying mount.
Necessary… No!
Faster… Hell yeah!
Too much Talent
I think one of the changes that makes it so much easier to skip content is the access to the whole talent tree.
I'm using talents that only became available to potential level 80's and I have been since before I was 60.
I realized I was grinding out level 63 elites and level 65 quests with relative ease… Then I realized I hadn't trained up new skills since I turned 60.
I was 3 levels behind in new skills and still slaughtering 5 mobs at a time!
Not only that, but due to Blizzards dual spec toolbar bug, I wasn't even using max rank spells. For example, my Chain Lightning, bread-and-butter-Elemental-Shaman-bomb, was 2 levels behind what I could cast.
Did it matter?
Nope, all the points in my improved blow-the-face-off-the-enemy talents were making up for any forgotten ranks of spells.
Maybe Northrend will provide the challenge.
Maybe, just maybe, Northrend will be a little more interesting, a little bit more challenging on Squidly.
Gnomeaggedon one or two shot nearly everything on his trek through Northrend. He didn't replace a piece of gear until around level 77.
Squidly on the other hand will be entering Northrend with gear up to level 63, maybe he will pick up a couple more items here or there, but he is going to walk off the boat with gear designed for mid-Outland, not starting Northrend.
Maybe the game really does start at the end
I have never been in this position before, but now I understand why everyone deserts Azeroth.
It's not just that they are level 80 and working from Dalaran.
It's that no matter how hard you try, Blizzard doesn't want you in Azeroth (yet), they want you in the Fjords.
Make money running a WoWguild?
OK, completely off topic, but I was just reading this post (The Cost of Being a Goon) over at Outland Bound.
It's worth a read if you jaw hasn't dropped yet today!
Makes me want to start an exclusive guild…
Gnomer and Out, Squidly and Stout!
This work is licensed under a Creative Commons Attribution-Noncommercial-Share Alike 3.0 Unported License.


text:
Charlotteans are invited to a viewing party Friday to watch CNN's "Situation Room," where Republican stategist Alex Castellanos will shave his 41-year-old mustache in support of epilepsy research.
Castellanos, a former Morehead scholar at UNC Chapel Hill, will shave his mustache live at 4 p.m. to honor a challenge he made last month with friend David Axelrod, President Obama's senior campaign strategist.
The arrangement began before the election when Axelrod appeared on on MSNBC's "Morning Joe" with Joe Scarborough and bet his facial hair that Obama would win Michigan, Minnesota, and Pennsylvania in the presidential election -- which he did.
Instead of growing a mustache, as he had promised, Scarborough said he would donate $10,000 to Citizens United for Research in Epilepsy, the charity founded by Axelrod's wife, Susan. The couple has a daughter with epilepsy.
In response, Axelrod said he would still shave his 40-year-old mustache if they could raise $1 million for CURE. The money came in, and Axelrod shaved his mustache in December, live on "Morning Joe."
That same day, Castellanos announced he would also shave his longtime mustache if CURE could recruit 500 new donors in a month. The challenge drew 527 new donors, who raised more than $115,000 for CURE.
Hosts for the viewing party are Bodgan Ewendt, executive director for CURE, and his wife, Jackie, who have a home in Charlotte. The party is open to the public and starts at 3 p.m. at Hampton Inn & Suites SouthPark at Phillips Place. RSVP at firstname.lastname@example.com.
Happy New You in 2012
8 years ago


text:
Former St. Johns' dean used students as slaves
I wish it wasn't so, but wishes do not reflect the reality of a university administrator using students as servant/slaves. Now one of her lawyers stated that the student duties were just the normal duties of a work study student. The lawyer's comment is damning because it may be true and if this ends up being her defense she will have to prove it. This case could blow the cover of administrator largess and exploitation of students. There should be a huge outcry re this case, but it will not likely occur since there appears to be no sexual component.
In any case, the dankprofessor says again and again do not automatically trust administrators. They are generally so overpaid that many feel that they can get away with anything. Following is the NY Times article-
A former administrator at St. John's University accused of embezzling about $1 million from the college in Queens has now been charged with far more lurid crimes: forcing students to clean, cook and act as her personal servants to keep their scholarships.
The ex-administrator, Cecilia Chang, who served as a dean and vice president at the university, was charged with forced labor and bribery, according to a complaint made public by federal prosecutors on Thursday.
As the dean of the Institute of Asian Studies at St. John's, Ms. Chang had the authority to grant 15 scholarships a year. The recipients, most of whom were from overseas, were told they had to work 20 hours a week under her supervision.
The students thought they would be doing work related to the university. Instead, according to the prosecutors, she forced them to perform menial tasks at her home in Jamaica Estates, Queens.
One of the students had to drive Ms. Chang's son to the airport at 3 a.m., the complaint says, and another had to deliver cash to her at Foxwoods Resort Casino in Connecticut.
And she made it clear that if the students did not perform their extracurricular duties, they would lose their scholarships, which were worth at least $5,000, the complaint says. The loss of the scholarships might have forced some of the students to drop out, it adds.
"In addition to the outrageous way she treated her students, in exchange for scholarships, she had them falsify documents," Charles Kleinberg, an assistant United States attorney, said at Ms. Chang's bail hearing in Federal District Court in Brooklyn.
Ms. Chang, 57, did not enter a plea or speak during the one-hour hearing, but she stood shaking her head as prosecutors argued that she was a flight risk because she holds a passport from Taiwan, which does not have an extradition treaty with the United States.
Her lawyers argued that by surrendering on Thursday morning, Ms. Chang demonstrated that she would not flee. They added that she was already wearing an electronic monitoring device as part of the bail conditions in the embezzlement case, a 205-count indictment filed by the Queens district attorney's office in September.
In that case, Ms. Chang is accused of stealing about $1 million from St. John's. Prosecutors say she used the money to pay for lingerie, casino trips and her son's tuition.
After three decades at St. John's, Ms. Chang was suspended when the embezzlement allegations came to light in January, and she was fired in June.
Magistrate Judge Joan M. Azrack set Ms. Chang's bail at $1.5 million, to be secured by two homes belonging to friends, one in Hempstead, N.Y., and another in Yonkers. If convicted, Ms. Chang faces at least 10 years in prison, prosecutors said.
After the arraignment, Ron Rubenstein, one of Ms. Chang's lawyers, said that the students' duties, which never totaled more than 20 hours a week, were a normal part of the St. John's work-study program.
Many of those tasks were to help with Taiwanese dignitaries visiting Ms. Chang's house, where she frequently entertained out-of-town guests for fund-raising purposes, Mr. Rubenstein said.
"The fact that this is even a crime is shocking," he said outside court. "Cooking a meal doesn't sound at first blush like work-study, but wait till the trial. I'm not going to give you the defense now."
According to the complaint, one student, identified only as CI1, "drove Chang to the hair salon, to restaurants and to the airport."
"As a driver," it adds, "CI1 was also responsible for taking out the garbage and shoveling snow at Chang's residence."
St. John's officials said that the students who worked under Ms. Chang did not have to worry about losing their scholarships.
"If these allegations by federal authorities are true," Dominic Scianna, a spokesman for St. John's, said in a statement, "Ms. Chang's treatment of some students and the environment she created are shocking and in complete violation of all this university stands for."
A for-sale sign was posted outside Ms. Chang's house on Thursday; an Internet listing puts the price at $2.89 million, or for rent at $5,800 a month
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