Regulatory Capital Law and Legal Definition

According to 13 CFR 107.50 [Title 13 Business Credit and Assistance; Chapter I Small Business Administration; Part 107 Small Business Investment Companies], Regulatory Capital means:

"(1) General. Regulatory Capital means Private Capital, excluding non-cash assets contributed to a Licensee or a license applicant, and non-cash assets purchased by a license applicant, unless such assets have been converted to cash or have been approved by SBA for inclusion in Regulatory Capital. For purposes of this definition, sales of contributed non-cash assets with recourse or borrowing against such assets shall not constitute a conversion to cash.

(2) Exclusion of questionable commitments. An investor's commitment to a Licensee is excluded from Regulatory Capital if SBA determines that the collectibility of the commitment is questionable."