Special rules for a Section 301(d) Licensee owned by another Licensee.

13 C.F.R. § 107.120
in effectEffective: 2024-07-01
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With SBA's prior written approval, a Section 301(d) Licensee may operate as the subsidiary of one or more Licensees (participant Licensees), subject to the following: (a) Each participant Licensee must own at least 20 percent of the voting securities of the Section 301(d) Licensee. (b) A participant Licensee must treat its entire capital contribution to the subsidiary as a reduction of its Leverageable Capital. The participant Licensee's remaining Leverageable Capital must be sufficient to support its outstanding Leverage. (c) A participant Licensee may not transfer its Leverage to a subsidiary Section 301(d) Licensee.

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