81 FR 19697 - Small Business Investment Company (SBIC) Program: SBA Model Form of Agreement of Limited Partnership for an SBIC Issuing Debentures

SMALL BUSINESS ADMINISTRATION

Federal Register Volume 81, Issue 65 (April 5, 2016)

The Small Business Administration (SBA) has updated the SBA Model Form of Agreement of Limited Partnership for an SBIC Issuing Debentures Only (``Model Version 3.0''). This update reflects comments received from the public in response to notices SBA published in the Federal Register on April 22, 2014 and June 26, 2015. The Model Version 3.0 is available on SBA's Web site and is effective for all SBIC applicants as of October 1, 2016.

[Federal Register Volume 81, Number 65 (Tuesday, April 5, 2016)]
[Notices]
[Pages 19697-19698]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-07749]


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SMALL BUSINESS ADMINISTRATION


Small Business Investment Company (SBIC) Program: SBA Model Form 
of Agreement of Limited Partnership for an SBIC Issuing Debentures

AGENCY: Small Business Administration.

ACTION: Notice; issuance and effective date of Revised SBA Model Form 
of Agreement of Limited Partnership for an SBIC Issuing Debentures 
Only.

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SUMMARY: The Small Business Administration (SBA) has updated the SBA 
Model Form of Agreement of Limited Partnership for an SBIC Issuing 
Debentures Only (``Model Version 3.0''). This update reflects comments 
received

[[Page 19698]]

from the public in response to notices SBA published in the Federal 
Register on April 22, 2014 and June 26, 2015. The Model Version 3.0 is 
available on SBA's Web site and is effective for all SBIC applicants as 
of October 1, 2016.

DATES: The effective date of the Model Version 3.0 is October 1, 2016.

FOR FURTHER INFORMATION CONTACT: Michael Schrader, Attorney Advisor, 
Department of Financial Law and Lender Oversight, Office of General 
Counsel, 409 Third Street SW., Washington, DC 20416; (202) 205-7115.

SUPPLEMENTARY INFORMATION: The SBIC Program was established under the 
Small Business Investment Act of 1958. SBICs are privately owned and 
managed investment funds, licensed and regulated by SBA, that use 
privately-raised capital plus funds borrowed with an SBA guarantee to 
make equity and debt investments in qualifying small businesses. The 
SBIC license application (SBA Forms 2181, 2182 and 2183) requires an 
applicant to submit, among other things, its organizational documents. 
The majority of applicants to the SBIC program are formed as limited 
partnerships, and these applicants must submit their limited 
partnership agreement as part of their application. The original 
version of SBA's model limited partnership agreement was developed in 
2000 to assist SBIC applicants in producing a limited partnership 
agreement suitable for an SBIC and to facilitate this process by 
including provisions required by the regulations governing the SBIC 
Program (13 CFR part 107) and other SBA policy requirements designed to 
minimize the risk of loss to SBA in providing financial assistance to 
SBICs. That version was updated in 2004, with additional limited 
updates since that time (``Model Version 2.0''). The Model Version 2.0 
is available on SBA's Web site at www.sba.gov/sbic/investing-sbic/model-partnership-agreement.
    Since the last comprehensive update to the Model Version 2.0, 
changes have occurred both in the structure and operation of limited 
partnerships and in the venture capital industry. As part of its 
process of updating the Model Version 2.0, SBA published notices in the 
Federal Register soliciting comments and recommendations from the 
public on April 22, 2014, 79 FR 22568, and June 26, 2015, 80 FR 36881. 
SBA carefully considered the comments received and incorporated those 
that the Agency believed were appropriate into the Model Version 3.0. 
The Model Version 3.0 is available on SBA's Web site at www.sba.gov/sbic/investing-sbic/model-partnership-agreement.
    All applicants, whether first time or subsequent fund applicants, 
that submit an SBIC license application on or after October 1, 2016 
must use the Model Version 3.0 and follow the instructions set forth 
therein.

    Authority: 15 U.S.C. 681.

Mark L. Walsh,
Associate Administrator, Office of Investment and Innovation.
[FR Doc. 2016-07749 Filed 4-4-16; 8:45 am]
BILLING CODE 8025-01-P