Regulations last checked for updates: Nov 25, 2024

Title 13 - Business Credit and Assistance last revised: Nov 20, 2024
§ 107.800 - Financings in the form of Equity Securities.

(a) You may purchase the Equity Securities of a Small Business. You may not, inadvertently or otherwise:

(1) Become a general partner in any unincorporated business; or

(2) Become jointly or severally liable for any obligations of an unincorporated business.

(b) Definition. Equity Securities means stock of any class in a corporation, stock options, warrants, limited partnership interests in a limited partnership, membership interests in a limited liability company, or joint venture interests. If the Financing agreement contains debt-type acceleration provisions or includes redemption provisions, other than those permitted under § 107.850, the security will be considered a Debt Security for purposes of § 107.855 and § 107.1150(c)(1).

[61 FR 3189, Jan. 31, 1996, as amended at 74 FR 33915, July 14, 2009]
authority: 15 U.S.C. 662,681,687b,687k
source: 61 FR 3189, Jan. 31, 1996, unless otherwise noted.
cite as: 13 CFR 107.800