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New Markets Venture Capital Program

SBA · final-rule · Published 2002-11-12 · Effective 2002-12-12 · 67 FR 68498

Document

Document number
02-28204
Federal Register citation
67 FR 68498
CFR reference
13 CFR 108
Type
Rule
Action
Final rule.
Category
final-rule
Agency
US Small Business Administration
Publication date
2002-11-12
Effective date
2002-12-12

Abstract

The U.S. Small Business Administration ("SBA") makes several amendments to the regulations for the New Markets Venture Capital ("NMVC") program. The majority of the amendments make technical changes to the regulations, to correct typographical errors or to clarify language. SBA also makes five substantive amendments to the regulations, which SBA believes will result in more efficient and effective delivery of NMVC program benefits to the targeted geographic areas. Generally, the five changes will: Allow a New Markets Venture Capital company ("NMVC company") to include in its regulatory capital SBA-approved organizational and management expenses paid on behalf of the NMVC company before the company is finally approved; Allow SBA, in selecting recipients for NMVC program assistance, to compare grant applications from specialized small business investment companies ("SSBICs") with NMVC company applications from the same or proximate low-income geographic areas ("LI areas"); Create rules governing fees an NMVC company or its associates may charge for management services provided to small businesses in which the NMVC company invests; Revise the grant application process for SSBICs so as to make it more parallel with the application process for NMVC companies; and Add a requirement that NMVC companies must use at least 80 percent of their grant funds (both funds from SBA and grant matching resources) to provide operational assistance to smaller enterprises located in an LI area at the time the operational assistance commenced.

Source

Authoritative
Federal Register document
Machine
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