United States Government Publishing Office publisher pbl distributor dst United States National Archives and Records Administration Office of the Federal Register author aut Government Organization text government publication eng FR Regulatory Information 2014_register executive 2014-10-21 article Rules and Regulations D09002ee1c7f85585 D09002ee1c7f8564c United States Small Business Administration originator org United States Government Agency or Subagency In this final rule, the U.S. Small Business Administration (SBA) is revising the regulations for the Small Business Investment Company (SBIC) program concerning investments in passive businesses. SBICs are generally prohibited from investing in passive businesses under the Small Business Investment Act of 1958, as amended, as well as under SBIC program regulations. This final rule modifies an exception that allows an SBIC to make an investment in a passive small business that passes through the investment proceeds to one or more subsidiaries, each of which must be a non-passive small business. This modification allows an SBIC to structure an investment utilizing two levels of passive small businesses as pass-through entities under specific circumstances. The purpose of the modification is to place SBICs on a more equal footing with their non-SBIC counterparts in the venture capital and private equity sectors, in which investments structured with two passive levels are not uncommon. This final rule also includes several technical corrections. Specifically, the final rule updates the regulations by replacing obsolete Standard Industrial Classification (SIC) codes with their equivalents under the North American Industrial Classification System (NAICS); corrects erroneous paragraph cross-references; and modernizes the options for meeting the record preservation requirements by removing the reference to "microfilm." 79 FR 62819 https://www.govinfo.gov/app/details/FR-2014-10-21/2014-24803 2014-24803 fr21oc14-3 RIN 3245-AG57 8025-01-P https://www.govinfo.gov/app/details/FR-2014-10-21/2014-24803 https://www.govinfo.gov/content/pkg/FR-2014-10-21/html/2014-24803.htm https://www.govinfo.gov/content/pkg/FR-2014-10-21/pdf/2014-24803.pdf Investment Companies Loan Programs-Business Reporting and Recordkeeping Requirements Small Businesses 6 p. 62819 62824 79 FR 62819 Title 13 Part 107 13 CFR Part 107 RIN 3245-AG57 Small Business Investment Companies-Investments in Passive Businesses; Federal Register Vol. 79, Issue RULE 2014-24803 SMALL BUSINESS ADMINISTRATION 2014-11-20 8025-01-P 2014-24803 Final rule.

In this final rule, the U.S. Small Business Administration (SBA) is revising the regulations for the Small Business Investment Company (SBIC) program concerning investments in passive businesses. SBICs are generally prohibited from investing in passive businesses under the Small Business Investment Act of 1958, as amended, as well as under SBIC program regulations. This final rule modifies an exception that allows an SBIC to make an investment in a passive small business that passes through the investment proceeds to one or more subsidiaries, each of which must be a non-passive small business. This modification allows an SBIC to structure an investment utilizing two levels of passive small businesses as pass-through entities under specific circumstances. The purpose of the modification is to place SBICs on a more equal footing with their non-SBIC counterparts in the venture capital and private equity sectors, in which investments structured with two passive levels are not uncommon. This final rule also includes several technical corrections. Specifically, the final rule updates the regulations by replacing obsolete Standard Industrial Classification (SIC) codes with their equivalents under the North American Industrial Classification System (NAICS); corrects erroneous paragraph cross-references; and modernizes the options for meeting the record preservation requirements by removing the reference to "microfilm."

This rule is effective November 20, 2014. Theresa Jamerson, Office of Investment and Innovation, (202) 205-7563, or Carol Fendler, Office of Investment and Innovation, (202) 205-7559, or sbic@sba.gov. Investment Companies Loan Programs-Business Reporting and Recordkeeping Requirements Small Businesses Small Business Investment Companies: Investments in Passive Businesses , sbic@sba.gov Vol. 79, no. 203 Office of the Federal Register, National Archives and Records Administration 2014-10-21 continuing daily deposited born digital 243 p. Table of Contents: AE 2.7: GS 4.107: AE 2.106: KF70.A2 https://www.govinfo.gov/app/details/FR-2014-10-21 P0b002ee189e50d03 0097-6326 0042-1219 0364-1406 769-004-00000-9 000582072 f:fr21oc14 https://www.govinfo.gov/app/details/FR-2014-10-21 https://www.govinfo.gov/content/pkg/FR-2014-10-21/pdf/FR-2014-10-21.pdf https://www.govinfo.gov/content/pkg/FR-2014-10-21/xml/FR-2014-10-21.xml fdlp 62797 63029 DGPO 2014-10-21 2024-06-02 FR-2014-10-21 machine generated eng FR FR-2014-10-21 79 203