13 CFR 107.1505 - Liquidity requirements for Licensees issuing Participating Securities.
If you have outstanding Participating Securities, you must maintain sufficient liquidity to avoid a condition of Liquidity Impairment. Such a condition will constitute noncompliance with the terms of your Leverage under § 107.1820(e).
(a) Definition of Liquidity Impairment. A condition of Liquidity Impairment exists when your Liquidity Ratio, as determined in paragraph (b) of this section, is less than 1.20. You are responsible for calculating whether you have a condition of Liquidity Impairment:
(b) Computation of Liquidity Ratio. Your Liquidity Ratio equals your Total Current Funds Available (A) divided by your Total Current Funds Required (B), as determined in the following table:
|Financial account||Amount reportedon SBA form 468||Weight||Weighted amount|
|1 As determined by Licensee's management under its business plan.|
|(1) Cash and invested idle funds||×1.00|
|(2) Commitments from investors||×1.00|
|(3) Current maturities||×0.50|
|(4) Other current assets||×1.00|
|(5) Publicly Traded and Marketable Securities||×1.00|
|(6) Anticipated operating revenue for next 12 months||(1)||×1.00|
|(7) Total Current Funds Available||A|
|(8) Current liabilities||×1.00|
|(9) Commitments to Small Businesses||×0.75|
|(10) Anticipated operating expense for next 12 months||(1)||×1.00|
|(11) Anticipated interest expense for next 12 months||(1)||×1.00|
|(12) Contingent liabilities (guarantees)||×0.25|
|(13) Total Current Funds Required||B|
Title 13 published on 2014-01-01
no entries appear in the Federal Register after this date.