Small business investment companies: conflicts of interest and investment of idle funds

Docket ID: SBA-2010-0013
Agency: Small Business Administration (SBA)
This rule would clarify the circumstances under which a Small Business Investment Company (SBIC) must obtain a conflict of interest exemption for a co-investment with an affiliate. In the current regulations, investment by an SBIC in a company in which the affiliate has a pre-existing 10 percent or greater ownership interest is addressed in two overlapping provisions, one requiring a conflict of interest exemption and the other requiring SBA's prior written approval (a lower level of regulatory approval than a conflict of interest exemption). The rule would eliminate the need for a conflict of interest exemption for a second round of financing if the SBIC and its affiliate are continuing to invest with the same terms conditions and the same proportions.
RIN: 3245-AF56
Impacts and Effects: Small Entities (Business)
CFR Citation: 13 CFR 107
Priority: Other Significant
UA and Regulatory Plan Information open glossary dialog  
Publication Period: Fall 2012
Agenda Stage of Rulemaking: Completed Action
Major Rule: No
Legal Authorities: 15 USC 662, 15 USC 681 et seq, 15 USC 683, 15 USC 687
Legal Deadlines: None
Government Levels Affected: No
Federalism Implications: No
Unfunded Mandates: No
Requires Regulatory Flexibility Analysis: No
Small Entities Affected: Business
International Impacts: No
Energy Effects: No
Included in Regulatory Plan: No
ActionDateFR Citation
NPRM10/14/201075 FR 63110
NPRM Comment Period End11/15/2010
Final Rule04/04/201277 FR 20292
Docket Details open glossary dialog  
Related RINs: None
Related Dockets: None
Type: Rulemaking
Program Office: Investment Division

Primary Documents

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Comment Period Closed
Nov 15, 2010 11:59 PM ET
Proposed Rule
Posted: 10/14/2010
ID: SBA-2010-0013-0001
Comment Period Closed
Posted: 04/04/2012
ID: SBA-2010-0013-0003

Supporting Documents

No documents available.


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Comments Received*
Regulatory Timeline
Pre Rule
Current Stage
Proposed Rule
Current Stage
Final Rule
Current Stage
Current Stage
Agency Contact
Sean Greene
Associate Administrator for Investments and Special Advisor for Innovation
202 205-6513
409 Third Street SW, Washington, DC 20416
Washington, DC 20416
*This count refers to the total comment/submissions received on this docket, as of 11:59 PM yesterday. Note: Agencies review all submissions, however some agencies may choose to redact, or withhold, certain submissions (or portions thereof) such as those containing private or proprietary information, inappropriate language, or duplicate/near duplicate examples of a mass-mail campaign. This can result in discrepancies between this count and those displayed when conducting searches on the Public Submission document type. For specific information about an agency’s public submission policy, refer to its website or the Federal Register document.