CFR Subpart E

CFR Subpart E
in effect

13 C.F.R. § 108.340 Evaluation and selection—general.

SBA will evaluate and select an Applicant to participate in the NMVC program solely at SBA's discretion, based on SBA's review of the Applicant's application materials, interviews or site visits with the Applicant (if any), and background investigations conducted by SBA and other Federal agencies. SBA's evaluation and selection process is intended to— (a) Ensure that Applicants are evaluated on a competitive basis and in a fair and consistent manner; (b) Take into consideration the unique proposals presented by Applicants; (c) Ensure that each Applicant that SBA designates as a NMVC Company can fulfill successfully the goals of its comprehensive business plan; and (d) Ensure that SBA selects Applicants in such a way as to promote Developmental Venture Capital investments nationwide and in both urban and rural areas.

13 C.F.R. § 108.350 Eligibility and completeness.

SBA will not consider any application that is not complete or that is submitted by an Applicant that does not meet the eligibility criteria described in subpart C of this part. SBA, at its sole discretion, may request from an Applicant additional information concerning eligibility criteria or easily completed portions of the application in order to allow SBA to consider that Applicant's application.

13 C.F.R. § 108.360 Evaluation criteria.

SBA will evaluate and select an Applicant for participation in the NMVC program by considering the following criteria— (a) The quality of the Applicant's comprehensive business plan in terms of meeting the objectives of the NMVC program; (b) The likelihood that the Applicant will fulfill the goals described in its comprehensive business plan; (c) The capability of the Applicant's management team; (d) The strength and likelihood for success of the Applicant's operations and investment strategies; (e) The need for Developmental Venture Capital investments in the LI Areas in which the Applicant intends to invest; (f) The extent to which the Applicant will concentrate its activities on serving the LI Areas in which it intends to invest, including the ratio of resources that it proposes to invest in such areas as compared to other areas; (g) The Applicant's demonstrated understanding of the markets in the LI Areas in which it intends to focus its activities; (h) The likelihood that and the time frame within which the Applicant will be able to— (1) Raise the Regulatory Capital it proposes to raise for its investments, and (2) Obtain the binding commitments for contributions in cash or in-kind and/or an annuity it proposes to obtain as its matching resources for its Operational Assistance grant award; (i) The strength of the Applicant's proposal to provide Operational Assistance to Smaller Enterprises in which it plans to invest; (j) The extent to which the activities proposed by the Applicant will promote economic development and the creation of wealth and job opportunities in the LI Areas in which it intends to invest and among individuals living in LI Areas; and (k) The strength of the Applicant's application compared to applications submitted by other Applicants and by SSBICs intending to invest in the same or proximate LI Areas.

13 C.F.R. § 108.370 Conditional approval.

From among the Applicants submitting eligible and complete applications, SBA will select a number of Applicants and will conditionally approve such selected Applicants to participate in the NMVC program. SBA will give each such Conditionally Approved NMVC Company a specific period of time, not to exceed two years, to satisfy the requirements to become a NMVC Company.

13 C.F.R. § 108.380 Final approval as a NMVC Company.

(a) General rule. With respect to each Conditionally Approved NMVC Company, SBA will either: (1) Grant final approval to participate in the NMVC program and designate such company as a NMVC Company, if such Conditionally Approved NMVC Company: (i) Within the specific period of time SBA gave to it when SBA conditionally approved it for participation in the NMVC program, has raised: (A) The amount of Regulatory Capital set forth in its application, pursuant to § 108.310(a)(1); and (B) The amount of matching resources for its Operational Assistance grant award set forth in its application, pursuant to § 108.310(a)(2); and (ii) Enters into a Participation Agreement with SBA; or (2) Revoke SBA's conditional approval of the company, at which time it is no longer a Conditionally Approved NMVC Company and must not participate in the NMVC program or represent itself as a Conditionally Approved NMVC Company. (b) Exception to requirement to raise matching resources—(1) General. At its discretion and based upon a showing of good cause, SBA may consider a Conditionally Approved NMVC Company to have satisfied the requirement in paragraph (a)(1)(i)(B) of this section to raise matching resources in the amount of at least 30 percent of its Regulatory Capital if the Conditionally Approved NMVC Company— (i) Already has raised at least 20 percent of the total amount of required matching resources; and (ii) Has a viable plan that reasonably projects its capacity to raise the remainder of the required amount of matching resources. (2) Request for exception. Before the expiration of the time period given to it by SBA to meet the requirements to become a NMVC Company, a Conditionally Approved NMVC Company may submit to SBA a request that SBA grant the exception described in paragraph (b)(1) of this section. Such Conditionally Approved NMVC must present to SBA evidence of good cause for such request, as well as evidence supporting the elements of the exception described in paragraph (b)(1) of this section. (3) No applicability to Regulatory Capital. The exception described in this section applies only to matching resources for the Operational Assistance grant award. Under no circumstances will SBA designate a Conditionally Approved NMVC Company as a NMVC Company if such Conditionally Approved NMVC Company does not raise the required amount of Regulatory Capital within the time period SBA gave it to do so.

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