---
kind: "section"
citation: "12 C.F.R. § 7.1015"
title: "12"
number: "7.1015"
heading: "National bank and Federal savings association investments in small business investment companies."
url: "https://uscodex.org/cfr/12/7.1015"
---

# §7.1015. National bank and Federal savings association investments in small business investment companies.

- (a) **National banks.** A national bank may invest in a small business investment company (SBIC) or in any entity established solely to invest in SBICs, including purchasing the stock of a SBIC, subject to appropriate capital limitations (see e.g., [15 U.S.C. 682(b)](/usc/15/682.md?p=b)), and may receive the benefits of such stock ownership (e.g., stock dividends). The receipt and retention of a dividend by a national bank from a SBIC in the form of stock of a corporate borrower of the SBIC is not a purchase of stock within the meaning of [12 U.S.C. 24(Seventh)](/usc/12/24.md?p=Seventh).
- (b) **Federal savings associations.** Federal savings associations may invest in a SBIC or in any entity established solely to invest in SBICs as provided in [12 CFR 160.30](/cfr/12/160.30.md).
- (c) **Qualifying SBIC.** A national bank or Federal savings association may invest in a SBIC that is either:
  - (1) Already organized and has obtained a license from the Small Business Administration; or
  - (2) **In the process of being organized.**
- (d) **SBIC wind-down.** A national bank or Federal savings association may retain an interest in a SBIC that has voluntarily surrendered its license to operate as a SBIC in accordance with [13 CFR 107.1900](/cfr/13/107.1900.md) and does not make any new investments (other than investments in cash equivalents, which, for the purposes of this [paragraph (d)](#d), means high quality, highly liquid investments whose maturity corresponds to the issuer's expected or potential need for funds and whose currency corresponds to the issuer's assets) after such voluntary surrender.

## Notes

### Amendments

[85 FR 83728, Dec. 22, 2020]

### Authority

Authority: 12 U.S.C. 1 et seq., 25b, 29, 71, 71a, 92, 92a, 93, 93a, 95(b)(1), 371, 371d, 481, 484, 1462a, 1463, 1464, 1465, 1818, 1828, 3102(b), and 5412(b)(2)(B).

### Source

Source: 61 FR 4862, Feb. 9, 1996, unless otherwise noted.

### Amendments

[85 FR 83728, Dec. 22, 2020]