§ 120.852Restrictions regarding CDC participation in the Small Business Investment Company (SBIC) program and the 7(a) loan program.
(a)7(a) loan program. A CDC must not invest in or be an Affiliate of a Lender participating in the 7(a) loan program described in § 120.2(a). (For a definition of Affiliation, refer to § 121.103 of this chapter.) CDCs that already are affiliated with state development companies approved by SBA under section 501 of Title V, as of November 6, 2003 may remain Affiliates.
(b)SBIC program. A CDC must not directly or indirectly invest in a Licensee (as defined in § 107.50 of this chapter) licensed by SBA under the SBIC program authorized in Part A of Title III of the Small Business Investment Act, 15 U.S.C. 681et seq. A CDC that has an SBA-approved investment in a Licensee as of November 6, 2003 may retain such investment.