TITLE 13 - BUSINESS CREDIT AND ASSISTANCE

CHAPTER I - SMALL BUSINESS ADMINISTRATION

PART 108 - NEW MARKETS VENTURE CAPITAL (''NMVC'') PROGRAM

subpart k - NMVC COMPANY'S NONCOMPLIANCE WITH TERMS OF LEVERAGE

108.1830 - NMVC Company's Capital Impairment definition and general requirements.

  (a) Significance of Capital Impairment condition. If you have a condition of Capital Impairment, you are not in compliance with the terms of your Leverage. As a result, SBA has the right to impose the applicable remedies for noncompliance in 108.1810(g).

  (b) Definition of Capital Impairment condition. You have a condition of Capital Impairment if your Capital Impairment Percentage, as computed in 108.1840, exceeds 70 percent.

  (c) Quarterly computation requirement and procedure. You must determine whether you have a condition of Capital Impairment as of the end of each fiscal quarter. You must notify SBA promptly if you are capitally impaired.

  (d) SBA's right to determine NMVC Company's Capital Impairment condition. SBA may make its own determination of your Capital Impairment condition at any time.