CFR > Title 13 - Business Credit and Assistance > CHAPTER I—SMALL BUSINESS ADMINISTRATION > PART 107—SMALL BUSINESS INVESTMENT COMPANIES > SUBPART D—Changes in Ownership, Control, or Structure of Licensee; Transfer of License (§107.400 to §107.475) > 107.440—Standards governing prior SBA approval for a proposed transfer of Control.

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

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 license applicants.

Code of Federal Regulations

[61 FR 3189, Jan. 31, 1996]