---
kind: "section"
citation: "7 C.F.R. § 4290.210"
title: "7"
number: "4290.210"
heading: "Minimum capital requirements for RBICs."
url: "https://uscodex.org/cfr/7/4290.210"
---

# §4290.210. Minimum capital requirements for RBICs.

- (a) **General Rule.** Unless otherwise specified in a Federal Register notice, you must have Regulatory Capital of at least $10,000,000, or such lesser amount (but not less than $5,000,000) and Leverageable Capital of at least $500,000, to become a RBIC.
- (b) **Exception.**
  - (1) The Agency in its sole discretion and based on a showing of special circumstances and good cause may license an Applicant with Regulatory Capital of at least $2,500,000, but only if the Applicant:
    - (i) Has satisfied all eligibility criteria for licensing as a RBIC as described in [§ 4290.390(a)](/cfr/7/4290.390.md?p=a) of this part, except the capital requirement specified in [paragraph (a)(1)](/cfr/7/4290.390.md?p=a-1) of that section, as determined solely by the Agency;
    - (ii) Has a viable business plan reasonably projecting profitable operations; and
    - (iii) **Has a reasonable timetable for achieving Regulatory Capital of at least $10,000,000.**
  - (2) A RBIC licensed under this exception is not eligible to receive Leverage until it has complied with [paragraph (a)](#a) of this section.
- (c) **Time frame.** Each RBIC shall have a period of 2 years to meet the capital requirements set forth in this section.
- (d) **Closing.** Each RBIC may conduct more than one closing to raise the specific amount of Regulatory Capital that the Applicant had projected in its application that it would raise (see [§ 4290.310(b)](/cfr/7/4290.310.md?p=b)). One or more closings may take place subsequent to licensing as an RBIC to raise the difference between the required Regulatory Capital as provided under paragraphs [(a)](#a) and [(b)](#b) of this section and the specific amount of Regulatory Capital that the Applicant had projected to raise in its application.

## Notes

### Amendments

[69 FR 32204, June 8, 2004, as amended at 76 FR 80222, Dec. 23, 2011; 85 FR 16522, Mar. 24, 2020]

### Authority

Authority: 7 U.S.C. 1989 and 2009cc et seq.

### Source

Source: 69 FR 32204, June 8, 2004, unless otherwise noted.

### Amendments

[69 FR 32204, June 8, 2004, as amended at 76 FR 80222, Dec. 23, 2011; 85 FR 16522, Mar. 24, 2020]