U.S. Small Business Administration
Guaranteed 3.215% Debenture
Participation Certificates, Series SBIC 2010-10 B
Small Business Investment Companies
The Certificates represent fractional undivided interests in a pool of debentures which will be issued, simultaneously with the Certificates, by small business investment companies licensed by the U.S. Small Business Administration, an independent agency of the United States.
The Certificates are issued by SBA, through its agent The Bank of New York Mellon, as Trustee.
acceptable for purchase by and as security for advances to member banks of the Federal Reserve System; and
eligible as security for the deposit of public monies of the United States and as collateral for Treasury Tax and Loan Accounts.
Each debenture in the Pool is subject to Optional Prepayment, in whole but not in part, at the option of an SBIC on any Payment Date on or after March 1, 2011, at a prepayment price of 100% of the principal amount of the debenture, together with accrued interest. See “Optional Prepayment of Debentures.”
An Acceleration Event with respect to a debenture in the Pool will occur upon an event of default and transfer of the SBIC into liquidation status by SBA. Upon an Acceleration Event, pursuant to its Guarantee, SBA will make a payment of 100% of the principal amount of a debenture in the Pool, together with interest accrued to the Payment Date next following an Acceleration Event. See “Acceleration of Debentures.”