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)
Federal Register Volume 81, Issue 65 (April 5, 2016)
| Page Range | 19697-19698 | |
| FR Document | 2016-07749 |
[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] ======================================================================= ----------------------------------------------------------------------- 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. ----------------------------------------------------------------------- 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
![Federal Register / Vol. 81, No. 65 / Tuesday, April 5, 2016 / Notices 19697
securities. The Shares are in a Rule 10b–17 last accepts information relating to
continuous distribution and, as such, Rule 10b–17, with certain exceptions, distributions on the day before the ex-
the restricted period in which requires an issuer of a class of publicly dividend date.
distribution participants and their This exemptive relief is subject to
traded securities to give notice of certain
affiliated purchasers are prohibited from modification or revocation at any time
specified actions (for example, a
bidding for, purchasing, or attempting to the Commission determines that such
dividend distribution) relating to such
induce others to bid for or purchase action is necessary or appropriate in
class of securities in accordance with
extends indefinitely. furtherance of the purposes of the
Rule 10b–17(b). Based on the
Exchange Act. Persons relying upon this
Based on the representations and facts representations and facts in the Letter, exemptive relief shall discontinue
presented in the Letter, particularly that and subject to the conditions below, we transactions involving the Shares of the
the Trust is a registered open-end find that it is appropriate in the public Funds, pending presentation of the facts
management investment company that interest, and consistent with the for the Commission’s consideration, in
will continuously redeem at the NAV protection of investors, to grant the the event that any material change
Creation Unit size aggregations of the Trust a conditional exemption from occurs with respect to any of the facts
Shares of each Fund and that a close Rule 10b–17 because market or representations made by the
alignment between the market price of participants will receive timely Requestors and, consistent with all
Shares and each Fund’s NAV is notification of the existence and timing preceding letters, particularly with
expected, the Commission finds that it of a pending distribution, and thus the respect to the close alignment between
is appropriate in the public interest and concerns that the Commission raised in the market price of Shares and each
consistent with the protection of adopting Rule 10–b17 will not be Fund’s NAV. In addition, persons
investors to grant the Trust an implicated.7 relying on this exemptive relief are
exemption under paragraph (d) of Rule Conclusion directed to the antifraud and anti-
101 of Regulation M with respect to manipulation provisions of the
It is hereby ordered, pursuant to Rule
each Fund, thus permitting persons Exchange Act, particularly Sections 9(a)
101(d) of Regulation M, that the Trust,
participating in a distribution of Shares and 10(b), and Rule 10b–5 thereunder.
based on the representations and the
of each Fund to bid for or purchase such Responsibility for compliance with
facts presented in the Letter, is exempt
Shares during their participation in these and any other applicable
from the requirements of Rule 101 with
such distribution.6 provisions of the federal securities laws
respect to each Fund, thus permitting
must rest with the persons relying on
Rule 102 of Regulation M persons who may be deemed to be
this exemptive relief.
participating in a distribution of Shares This order should not be considered
Rule 102 of Regulation M prohibits of each Fund to bid for or purchase such
issuers, selling security holders, or any a view with respect to any other
Shares during their participation in question that the proposed transactions
affiliated purchaser of such person from such distribution. may raise, including, but not limited to
bidding for, purchasing, or attempting to It is further ordered, pursuant to Rule the adequacy of the disclosure
induce any person to bid for or purchase 102(e) of Regulation M, that the Trust, concerning, and the applicability of
a covered security during the applicable based on the representations and the other federal or state laws to, the
restricted period in connection with a facts presented in the Letter, is exempt proposed transactions.
distribution of securities effected by or from the requirements of Rule 102 with
on behalf of an issuer or selling security respect to each Fund, thus permitting For the Commission, by the Division of
each Fund to redeem Shares of each Trading and Markets, pursuant to delegated
holder.
authority.8
Based on the representations and facts Fund during the continuous offering of
Robert W. Errett,
presented in the Letter, particularly that such Shares.
It is further ordered, pursuant to Rule Deputy Secretary.
the Trust is a registered open-end [FR Doc. 2016–07681 Filed 4–4–16; 8:45 am]
management investment company that 10b–17(b)(2), that the Trust, based on
will redeem at the NAV Creation Units the representations and the facts BILLING CODE 8011–01–P
of Shares of each Fund and that a close presented in the Letter, and subject to
the conditions below, is exempt from
alignment between the market price of SMALL BUSINESS ADMINISTRATION
the requirements of Rule 10b–17 with
Shares and each Fund’s NAV is
respect to transactions in the Shares of
expected, the Commission finds that it Small Business Investment Company
each Fund.
is appropriate in the public interest and (SBIC) Program: SBA Model Form of
This exemptive relief is subject to the
consistent with the protection of Agreement of Limited Partnership for
following conditions:
investors to grant the Trust an an SBIC Issuing Debentures
• The Trust will comply with Rule
exemption under paragraph (e) of Rule 10b–17 except for Rule 10b–
102 of Regulation M with respect to the AGENCY: Small Business Administration.
17(b)(1)(v)(a) and (b); and ACTION: Notice; issuance and effective
Funds, thus permitting each Fund to • The Trust will provide the
redeem Shares of each Fund during the date of Revised SBA Model Form of
information required by Rule 10b– Agreement of Limited Partnership for an
continuous offering of such Shares. 17(b)(1)(v)(a) and (b) to the Exchange as SBIC Issuing Debentures Only.
asabaliauskas on DSK3SPTVN1PROD with NOTICES
soon as practicable before trading begins
6 Additionally, we confirm the interpretation that
on the ex-dividend date, but in no event SUMMARY: The Small Business
a redemption of Creation Unit size aggregations of
Shares of each Fund and the receipt of securities later than the time when the Exchange Administration (SBA) has updated the
in exchange by a participant in a distribution of SBA Model Form of Agreement of
Shares of each Fund would not constitute an 7 We also note that timely compliance with Rule
Limited Partnership for an SBIC Issuing
‘‘attempt to induce any person to bid for or 10b–17(b)(1)(v)(a) and (b) would be impractical Debentures Only (‘‘Model Version 3.0’’).
purchase, a covered security during the applicable because it is not possible for the Funds to
restricted period’’ within the meaning of Rule 101 accurately project ten days in advance what This update reflects comments received
of Regulation M and, therefore, would not violate dividend, if any, would be paid on a particular
that rule. record date. 8 17 CFR 200.30–3(a)(6) and (9).
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![19698 Federal Register / Vol. 81, No. 65 / Tuesday, April 5, 2016 / Notices
from the public in response to notices All applicants, whether first time or Percent
SBA published in the Federal Register subsequent fund applicants, that submit
on April 22, 2014 and June 26, 2015. an SBIC license application on or after Homeowners With Credit Avail-
The Model Version 3.0 is available on October 1, 2016 must use the Model able Elsewhere ...................... 3.625
SBA’s Web site and is effective for all Version 3.0 and follow the instructions Homeowners Without Credit
SBIC applicants as of October 1, 2016. set forth therein. Available Elsewhere .............. 1.813
Businesses With Credit Avail-
DATES: The effective date of the Model Authority: 15 U.S.C. 681. able Elsewhere ...................... 6.000
Version 3.0 is October 1, 2016. Businesses Without Credit
FOR FURTHER INFORMATION CONTACT:
Mark L. Walsh,
Available Elsewhere .............. 4.000
Michael Schrader, Attorney Advisor, Associate Administrator, Office of Investment Non-Profit Organizations With
Department of Financial Law and and Innovation. Credit Available Elsewhere ... 2.625
Lender Oversight, Office of General [FR Doc. 2016–07749 Filed 4–4–16; 8:45 am] Non-Profit Organizations With-
Counsel, 409 Third Street SW., BILLING CODE 8025–01–P out Credit Available Else-
where ..................................... 2.625
Washington, DC 20416; (202) 205–7115.
For Economic Injury:
SUPPLEMENTARY INFORMATION: The SBIC Businesses & Small Agricultural
Program was established under the SMALL BUSINESS ADMINISTRATION
Cooperatives Without Credit
Small Business Investment Act of 1958. [Disaster Declaration #14679 and #14680] Available Elsewhere .............. 4.000
SBICs are privately owned and managed Non-Profit Organizations With-
investment funds, licensed and Texas Disaster # TX–00463 out Credit Available Else-
regulated by SBA, that use privately- where ..................................... 2.625
AGENCY: U.S. Small Business
raised capital plus funds borrowed with Administration.
an SBA guarantee to make equity and The number assigned to this disaster
ACTION: Notice. for physical damage is 14679 B and for
debt investments in qualifying small
businesses. The SBIC license economic injury is 14680 0.
SUMMARY: This is a notice of an
application (SBA Forms 2181, 2182 and Administrative declaration of a disaster The States which received an EIDL
2183) requires an applicant to submit, for the State of Texas dated 03/29/2016. Declaration # are Texas.
among other things, its organizational Incident: Severe Winter Storms, (Catalog of Federal Domestic Assistance
documents. The majority of applicants Tornadoes, Straight-line Winds and Numbers 59002 and 59008)
to the SBIC program are formed as Flooding. Maria Contreras-Sweet,
limited partnerships, and these Incident Period: 12/26/2015 through
applicants must submit their limited Administrator.
01/21/2016.
partnership agreement as part of their [FR Doc. 2016–07746 Filed 4–4–16; 8:45 am]
Effective Date: 03/29/2016.
application. The original version of Physical Loan Application Deadline BILLING CODE 8025–01–P
SBA’s model limited partnership Date: 05/31/2016.
agreement was developed in 2000 to Economic Injury (EIDL) Loan
assist SBIC applicants in producing a SMALL BUSINESS ADMINISTRATION
Application Deadline Date: 12/29/2016.
limited partnership agreement suitable
ADDRESSES: Submit completed loan Reporting and Recordkeeping
for an SBIC and to facilitate this process
applications to: U.S. Small Business Requirements Under OMB Review
by including provisions required by the
Administration, Processing and
regulations governing the SBIC Program AGENCY: Small Business Administration.
Disbursement Center, 14925 Kingsport
(13 CFR part 107) and other SBA policy
Road, Fort Worth, TX 76155. ACTION: 30-Day notice.
requirements designed to minimize the
risk of loss to SBA in providing FOR FURTHER INFORMATION CONTACT: A.
Escobar, Office of Disaster Assistance, SUMMARY: The Small Business
financial assistance to SBICs. That Administration (SBA) is publishing this
version was updated in 2004, with U.S. Small Business Administration,
409 3rd Street SW., Suite 6050, notice to comply with requirements of
additional limited updates since that the Paperwork Reduction Act (PRA) (44
time (‘‘Model Version 2.0’’). The Model Washington, DC 20416.
U.S.C. Chapter 35), which requires
Version 2.0 is available on SBA’s Web SUPPLEMENTARY INFORMATION: Notice is
agencies to submit proposed reporting
site at www.sba.gov/sbic/investing-sbic/ hereby given that as a result of the and recordkeeping requirements to
model-partnership-agreement. Administrator’s disaster declaration, OMB for review and approval, and to
Since the last comprehensive update applications for disaster loans may be publish a notice in the Federal Register
to the Model Version 2.0, changes have filed at the address listed above or other notifying the public that the agency has
occurred both in the structure and locally announced locations. made such a submission. This notice
operation of limited partnerships and in The following areas have been also allows an additional 30 days for
the venture capital industry. As part of determined to be adversely affected by public comments.
its process of updating the Model the disaster:
Version 2.0, SBA published notices in DATES: Submit comments on or before
Primary Counties: Collin, Dallas, Ellis,
the Federal Register soliciting May 5, 2016.
Rockwall, Van Zandt.
comments and recommendations from Contiguous Counties: ADDRESSES: Comments should refer to
the public on April 22, 2014, 79 FR the information collection by name and/
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Texas: Denton, Fannin, Grayson,
22568, and June 26, 2015, 80 FR 36881. Henderson, Hill, Hunt, Johnson, or OMB Control Number and should be
SBA carefully considered the comments Kaufman, Navarro, Rains, Smith, sent to: Agency Clearance Officer, Curtis
received and incorporated those that the Tarrant, Wood. Rich, Small Business Administration,
Agency believed were appropriate into The Interest Rates are: 409 3rd Street SW., 5th Floor,
the Model Version 3.0. The Model Washington, DC 20416; and SBA Desk
Version 3.0 is available on SBA’s Web Percent Officer, Office of Information and
site at www.sba.gov/sbic/investing-sbic/ Regulatory Affairs, Office of
model-partnership-agreement. For Physical Damage: Management and Budget, New
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Document Created: 2018-02-07 13:53:30
Document Modified: 2018-02-07 13:53:30
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| Action | Notice; issuance and effective date of Revised SBA Model Form of Agreement of Limited Partnership for an SBIC Issuing Debentures Only. | |
| Dates | The effective date of the Model Version 3.0 is October 1, 2016. | |
| 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. | |
| FR Citation | 81 FR 19697 |
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