The United States Small Business Administration released its Notice of Annual Recertification on May 13, 2010. Annual recertification is required for all Small Business Investment Company Licensees (Licensees) who have unfunded commitments from Institutional Investors and outstanding SBA leverage, or a SBA leverage commitment, or both. This requirement is part of the SBA’s ongoing efforts to ensure that Institutional Investors remain qualified investors and that Regulatory Capital is accurately reported.
Licensees who are required to be recertified should submit either:
Option 1: a new Capital Certificate that has been updated for all changes in the Licensee’s Institutional Investors and/or Regulatory Capital; or
Option 2: a letter certifying that a review of the Licensee’s unfunded commitments from Institutional Investors revealed that no changes were required in the most recently filed Capital Certificate.
Licensees must submit the appropriate Capital Certificate or Letter to their assigned SBA operations analyst by the filing deadline.
Filing Deadlines
| Filing Deadline | Unfunded Commitments | |
| More than | Less than | |
| June 30, 2010 | $20,000,000 | $20,000,000+ |
| July 31, 2010 | $12,500,000 | $19,999,999 |
| Aug. 31, 2010 | $7,500,000 | $12,499,999 |
| Sept. 30, 2010 | $5,000,000 | $7,499,999 |
| Oct. 31, 2010 | $2,500,000 | $4,999,999 |
| Nov. 30, 2010 | $1 | $2,499,999 |
Licensees licensed after October 1, 2009 are not required to complete the recertification process. The Private Equity industry team at McGuireWoods LLP is dedicated to keeping our clients advised of new legislative and business developments as they occur. If you have any questions regarding these issues, or would like assistance during the recertification process or a copy of SBA Memorandum #2010-1, please feel free to contact your primary attorney at McGuireWoods LLP or the authors.