---
kind: "section"
citation: "13 C.F.R. § 108.1830"
title: "13"
number: "108.1830"
heading: "NMVC Company's Capital Impairment definition and general requirements."
url: "https://uscodex.org/cfr/13/108.1830"
---

# §108.1830. NMVC Company's Capital Impairment definition and general requirements.

- (a) **Significance of Capital Impairment condition.** If you have a condition of Capital Impairment, you are not in compliance with the terms of your Leverage. As a result, SBA has the right to impose the applicable remedies for noncompliance in [§ 108.1810(g)](/cfr/13/108.1810.md?p=g).
- (b) **Definition of Capital Impairment condition.** You have a condition of Capital Impairment if your Capital Impairment Percentage, as computed in [§ 108.1840](/cfr/13/108.1840.md), exceeds 70 percent.
- (c) **Quarterly computation requirement and procedure.** You must determine whether you have a condition of Capital Impairment as of the end of each fiscal quarter. You must notify SBA promptly if you are capitally impaired.
- (d) **SBA's right to determine NMVC Company's Capital Impairment condition.** SBA may make its own determination of your Capital Impairment condition at any time.

## Notes

### Authority

Authority: 15 U.S.C. 689-689q.

### Source

Source: 66 FR 28609, May 23, 2001, unless otherwise noted.