---
kind: "section"
citation: "13 C.F.R. § 107.115"
title: "13"
number: "107.115"
heading: "1940 Act and 1980 Act Companies."
url: "https://uscodex.org/cfr/13/107.115"
---

# §107.115. 1940 Act and 1980 Act Companies.


A 1940 Act or 1980 Act Company is eligible to apply for an SBIC license, and an existing Licensee is eligible to apply for SBA's approval to convert to a 1940 Act or 1980 Act Company. In either case, the 1940 Act or 1980 Act Company may elect to be taxed as a regulated investment company under section 851 of the Internal Revenue Code of 1986, as amended ([26 U.S.C. 851](/usc/26/851.md)). However, a Licensee making such election may make Distributions only as permitted under the applicable sections of this part (see the definition of Retained Earnings Available for Distribution, [§ 107.585](/cfr/13/107.585.md), and [§§ 107.1540 through 107.1580](/cfr/13/107.1540..107.1580.md)).


## Notes

### Authority

Authority: 15 U.S.C. 662, 681-687, 687b-h, 687k-m.

### Source

Source: 61 FR 3189, Jan. 31, 1996, unless otherwise noted.