---
kind: "section"
citation: "13 C.F.R. § 107.240"
title: "13"
number: "107.240"
heading: "Limitations on including non-cash capital contributions in Private Capital."
url: "https://uscodex.org/cfr/13/107.240"
---

# §107.240. Limitations on including non-cash capital contributions in Private Capital.


Non-cash capital contributions to a Licensee or license applicant are included in Private Capital only if they fall into one of the following categories:

- (a) **Direct obligations of, or obligations guaranteed as to principal and interest by, the United States.**
- (b) **Services rendered or to be rendered to you, priced at no more than their fair market value.**
- (c) **Tangible assets used in your operations, priced at no more than their fair market value.**
- (d) Shares in a Disadvantaged Business received by a subsidiary [Section 301(d)](/cfr/13/301.md?p=d) Licensee from its parent Licensee, valued at the lower of cost or fair value.
- (e) **Other non-cash assets approved by SBA.**

## 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.