SBA.gov » SBIC Program » General Information » Announcements » SBIC Final Rules: Energy Savings Debentures & Conflicts of Interest
SBIC Final Rules: Energy Savings Debentures & Conflicts of Interest
Date: April 27, 2012
The Small Business Administration (“SBA”) published two final rules in April 2012 as follows:
- Energy Saving Investments. This final rule only applies to SBICs licensed after September 30, 2008. It allows SBICs licensed after September 30, 2008 to issue Energy Saving Debentures in order to finance an “Energy Saving Qualified Investment”. The attachment provides some frequently asked questions regarding the Energy Saving Debenture. These will be posted and updated as necessary on the Office of Investment’s website (www.sba.gov/inv). The final rule may be found by clicking here or searching www.regulations.gov.
- Conflicts of Interest and Investment of Idle Funds: This final rule implements the following changes to SBIC regulations: (1) removes the requirement for an SBIC to obtain a conflict of interest exemption from SBA for certain financings, (2) revises the public notice requirements for conflicts of interest financings to conform with requirements under the Small Business Investment Act of 1958, as amended (“SBI Act”), and (3) expands an SBIC’s options for investing its “idle funds”, in conformity with the SBI Act. The final rule may be found here or searching www.regulations.gov.