13 C.F.R. § 107.800 Financings in the form of Equity Securities.
Title 13 - Business Credit and Assistance
(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.
Title 13: Business Credit and Assistance
PART 107—SMALL BUSINESS INVESTMENT COMPANIES
Subpart G—Financing of Small Businesses by Licensees
Structuring Licensee's Financing of Eligible Small Businesses: Types of Financing
§ 107.800 Financings in the form of Equity Securities.
