---
kind: "section"
citation: "13 C.F.R. § 107.210"
title: "13"
number: "107.210"
heading: "Minimum capital requirements for Licensees."
url: "https://uscodex.org/cfr/13/107.210"
---

# §107.210. Minimum capital requirements for Licensees.

- (a) **Companies licensed on or after October 1, 1996.** A company licensed on or after October 1, 1996, must have Leverageable Capital of at least $2,500,000 and must meet the applicable minimum Regulatory Capital requirement in this [paragraph (a)](#a), unless lower Leverageable Capital and Regulatory Capital amounts are approved by SBA as part of a Wind-down Plan in accordance with [§ 107.590(c)](/cfr/13/107.590.md?p=c):
  - (1) **Licensees other than Early Stage SBICs.** Except for Early Stage SBICs, a Licensee must have Regulatory Capital of at least $5,000,000. As an exception to the general rule in this [paragraph (a)(1)](#a-1), SBA in its sole discretion and based on a showing of special circumstances and good cause, which includes applicants that are headquartered in an Underlicensed State, may license an applicant with Regulatory Capital of at least $3,000,000, but only if the applicant:
    - (i) Has satisfied all licensing standards and requirements except the minimum capital requirement, as determined solely by SBA;
    - (ii) Has a viable business plan reasonably projecting profitable operations; and
    - (iii) **Has a reasonable timetable for achieving Regulatory Capital of at least $5,000,000.**
  - (2) **Early Stage SBICs.** An Early Stage SBIC must have Regulatory Capital of at least $20 million.
- (b) **Companies licensed before October 1, 1996.** A company licensed before October 1, 1996 must meet the minimum capital requirements applicable to such company, as required by the regulations in effect on September 30, 1996. See [§ 107.1120(c)(2)](/cfr/13/107.1120.md?p=c-2) for Leverage eligibility requirements.

## Notes

### Amendments

[63 FR 5866, Feb. 5, 1998, as amended at 77 FR 25051, Apr. 27, 2012; 82 FR 39340, Aug. 18, 2017; 88 FR 46007, July 18, 2023]

### Authority

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

### Source

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

### Amendments

[63 FR 5866, Feb. 5, 1998, as amended at 77 FR 25051, Apr. 27, 2012; 82 FR 39340, Aug. 18, 2017; 88 FR 46007, July 18, 2023]