DATE: December 18, 2001
SUBJECT: Small Business Administration; Minimum Draw Under the New Markets Venture Capital Program
SOURCE: Federal Register, December 18, 2001, Vol. 66, No. 243, page 65234
AGENCIES: Small Business Administration (SBA)
SYNOPSIS: SBA is establishing $100,000 as the minimum amount for draws against SBA leverage commitments to New Markets Venture Capital (NMVC) companies under the NMVC program.
EDITOR'S NOTE: The regulations for the NMVC program are in Title 13 of the Code of Federal Regulations (CFR), Part 108, New Markets Venture Capital ("NMVC") Program. Information about the NMVC program is available at http://www.sba.gov/INV.
For more on the NMVC Program, see the May 23, 2001, FEDERAL CONTRACTS DISPATCH "Small Business Administration; New Markets Venture Capital Program."
DATES: The notice is effective December 18, 2001.
ADDRESSES: Austin J. Belton, Director, Office of New Markets Venture Capital, Investment Division, U.S. Small Business Administration, 409 Third Street, SW, 6th Floor, Washington, DC 20416.
FOR FURTHER INFORMATION CONTACT: Peter C. Gibbs, Deputy Director, Office of New Markets Venture Capital, 202-205-7574, or e-mail: email@example.com.
SUPPLEMENTAL INFORMATION: Paragraph (b) of 13 CFR 108.1230, Draw-Downs by NMVC Company Under Leverage Commitment, provides SBA the authority and discretion to determine a minimum dollar amount for draws against SBA's leverage commitments ("leverage" means financial assistance provided to a NMVC Company by SBA through the guaranty of a NMVC company's debentures, and any other SBA financial assistance evidenced by a security of the NMVC company).
According to 13 CFR 108.1230(b), the amount of a draw that an NMVC company may take against SBA's leverage commitment must be a multiple of $5,000. SBA is establishing $100,000 as the minimum dollar amount of a draw. Therefore, for each draw, an NMVC company may request a draw in the amount of $100,000 or $105,000 or $110,000, and so on up to the total amount of leverage committed to but not yet drawn by that NMVC company.
FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.
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