First In Ventures Fund 3 SBIC Critical Technologies LP Seeking Exemption Under Section 312 for Conflict of Interest Financing
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The Small Business Administration published a notice that First In Ventures Fund 3 SBIC Critical Technologies LP, a federal SBIC licensee based in Hobe Sound, Florida, is seeking an exemption under Section 312 of the Small Business Investment Act and 13 CFR 107.730. The fund wants to provide financing to SCATR Corporation in Cleveland, Ohio, to support its growth. The transaction creates a conflict of interest because two associates of the fund—First In Ventures Fund II LP and First in SCATR 2024 LLC—already own more than 10 percent of SCATR Corporation through common control as defined in 13 CFR 107.50. Interested parties may submit written comments to the SBA within 15 days of the notice's publication.
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Key Changes
- First In Ventures Fund 3 SBIC Critical Technologies LP seeking SBA exemption under Section 312 of the Small Business Investment Act
- Proposed financing to SCATR Corporation despite associates owning more than 10% of the company
- Associates (First In Ventures Fund II LP and First in SCATR 2024 LLC) linked by Common Control per 13 CFR 107.50
+ 3 more changes with Pro
Obligations
What this law requires
First In Ventures Fund 3 SBIC Critical Technologies LP must obtain an exemption under Section 312 of the Small Business Investment Act and 13 CFR 107.730 before providing financing to SCATR Corporation
The SBA Associate Administrator for Investment must receive written comments from interested parties within 15 days of the notice's publication date regarding the proposed financing transaction
First In Ventures Fund 3 SBIC Critical Technologies LP must disclose that the financing transaction constitutes a conflict of interest under 13 CFR 107.730(a) because associates own more than 10 percent of SCATR Corporation
Written comments on the transaction must be submitted to the Associate Administrator for Investment, U.S. Small Business Administration, 409 Third Street SW, Washington, DC 20416 within 15 days of publication