13 CFR 108.740
§ 108.740 Portfolio diversification (“overline” limitation).
United States · 13 CFR — Business Credit and Assistance · Status: effective
Cite this
- Citation
- 13 CFR 108.740, § 108.740 Portfolio diversification (“overline” limitation), United States, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/51779
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Full text
(a) Without SBA's prior written approval, you may provide Financing or a Commitment to a Small Business only if the resulting amount of your aggregate outstanding Financings and Commitments to such Small Business and its Affiliates does not exceed 10 percent of the sum of:
(1) Your Regulatory Capital as of the date of the Financing or Commitment; plus
(2) The total amount of leverage projected in your participation agreement with SBA; plus
(3) Any permitted Distribution(s) you made during the five years preceding the date of the Financing or Commitment which reduced your Regulatory Capital.
(b) For the purposes of paragraph (a) of this section, you must measure each outstanding Financing at its current cost plus any amount of the Financing that was previously written off.
Legislative history
This is a federal regulation, adopted through agency rulemaking under the Administrative Procedure Act — not enacted by a recorded vote of Congress.