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SBA RIN: 3245-AG32 Publication ID: Spring 2011 
Title: ●Small Business Investment Companies; Innovation Funds  
Abstract: To address a critical market need for early stage equity financing, SBA proposes to license a limited number of Small Business Investment Companies (SBICs) each year that are focused on providing equity capital to seed and early stage small businesses. These SBICs would be designated as "Innovation Funds." SBA leverage is available to SBICs through a debenture instrument, the structure of which was not designed to address the needs or circumstances of early stage investors, and thus presents certain repayment risks for such investors. However, with certain regulatory changes, the risk associated with providing debenture leverage to Innovation Funds may be significantly reduced. This rule would establish a number of regulatory provisions applicable to Innovation Funds for the purpose of managing overall program risk, including lower limits on maximum leverage eligibility and special distribution rules. 
Agency: Small Business Administration(SBA)  Priority: Other Significant 
RIN Status: First time published in the Unified Agenda Agenda Stage of Rulemaking: Final Rule Stage 
Major: No  Unfunded Mandates: No 
CFR Citation: 13 CFR 107   
Legal Authority: 15 USC 636(a)(32)   
Legal Deadline:  None
Timetable:
Action Date FR Cite
Interim Final Rule  06/00/2011    
Regulatory Flexibility Analysis Required: No  Government Levels Affected: None 
Small Entities Affected: No  Federalism: No 
Included in the Regulatory Plan: No 
RIN Data Printed in the FR: No 
Agency Contact:
Carol Fendler
Systems Accountant, Office of Investment
Small Business Administration
409 Third Street SW., 6th Floor,
Washington, DC 20416
Phone:202 205-7559
Email: carol.fendler@sba.gov