Federal Register / Vol. 77, No. 84 / Tuesday, May 1, 2012 / Notices 25779 

any direct investor in the SBIC who is 

not an Institutional Investor. SBA will 

not permit an Early Stage SBIC 

applicant that is a drop-down to utilize 

dual commitments. 

5. Capital commitments by the 

principals, general partner, or their 

affiliates must be payable in cash when 

called (cannot be satisfied with notes or 

management fee waivers). 

D. General Partner 

1. All principals must: 

a. Hold direct ownership interests in 

and be the direct individual managers of 

the general partner, with no intervening 

entities. 

b. Receive carried interest directly 

from the general partner; for drop-down 

SBICs, carried interest may be received 

from the parent fund’s general partner. 

2. A maximum of 25% of the carried 

interest may be allocated to nonprincipals. 

3. Any provision to remove or 

terminate a principal must be spelled 

out within the general partner’s 

organizational document and must not 

be tied to events occurring under other 

agreements (e.g., a principal’s 

employment agreement with the 

management company). 

E. Investment Advisor (‘‘Management 

Company’’). Ownership of the 

Management Company that is highly 

disproportionate to the ownership of the 

general partner (e.g., one principal is the 

100% owner) is not viewed favorably by 

SBA, but may be acceptable if there are 

adequate checks and balances on the 

powers of the dominant owner. Areas 

that cannot be subject to unilateral 

decision-making include the following: 

1. Power to remove or terminate other 

principals. 

2. Power to change the composition of 

the Early Stage SBIC’s investment 

committee. 

V. Early Stage SBIC Licensing 

Evaluation Criteria 

A. General Criteria. SBA will evaluate 

an Early Stage SBIC license applicant 

based on the submitted application 

materials, Investment Committee 

interviews with the applicant’s 

management team, and the results of 

background investigations, public 

record searches, and other due diligence 

conducted by SBA and other Federal 

agencies. SBA will evaluate an Early 

Stage SBIC license applicant based on 

the same factors applicable to other 

license applicants, as set forth in 13 CFR 

107.305, with particular emphasis on 

managers’ skills and experience in 

evaluating and investing in early stage 

companies. As discussed in the Final 

Rule, evaluation criteria fall into 4 areas: 

(A) Management Team; (B) Track 

Record; (C) Proposed Investment 

Strategy; and D) Organizational 

Structure and Fund Economics. You 

should review these regulations prior to 

completing your MAQ. 

B. Managing SBA Leverage. SBA will 

pay particular attention to how a team’s 

investment strategy works with 

proposed SBA leverage. Early Stage 

Debenture leverage either requires a 5 

year interest and annual charge reserve 

from the date of issue or is structured 

with an original issue discount that 

covers the interest and annual charges 

for the first 5 years. In either case, Early 

Stage SBICs must identify how quarterly 

interest payments beginning in the 6th 

year from Debenture issue will be met. 

Sources of liquidity to make interest 

payments may include (a) private 

capital; (b) realizations; or (c) current 

income. As part of your plan of 

operations, you should carefully 

consider how your investment strategy 

will work with SBA leverage and make 

appropriate suggestions to manage risk. 

Risk mitigation strategies might include 

making some investments in current pay 

instruments; taking down less than a 

full tier of leverage, (i.e., leverage less 

than 100% of Regulatory Capital); taking 

leverage down later in the fund’s life; 

lowering management expenses; and 

reserving more private capital. The 

strategies you choose to employ should 

be appropriate for your management 

team’s track record and investment 

strategy. 

C. SBA Diversification Rights. Per 

§ 107.320, SBA reserves the right to 

maintain diversification among Early 

Stage SBICs with respect to (i) the year 

in which they commence operations 

(‘‘vintage year’’) and (ii) geographic 

location. 

1. Vintage Year Diversification. 

Vintage year has a major impact on the 

return expectations of a fund and 

excessive concentration in a single year 

could substantially increase program 

risk. Therefore, SBA reserves the right, 

when licensing Early Stage SBICs, to 

maintain diversification across vintage 

years. SBA believes that it will be able 

to manage vintage year diversification 

through its call process. For example, if 

SBA approves a significant number of 

Green Lights in FY 2012, it may not 

hold a call in FY 2013. This will also 

help facilitate the allocation of early 

stage debenture leverage. As such, 

potential applicants should not assume 

that SBA will hold calls for new MAQs 

each year. SBA will announce all new 

calls through the Federal Register. 

2. Geographic Diversification. All 

Early Stage SBICs must first meet SBA’s 

basic licensing criteria. After those 

criteria are met, SBA reserves the right 

to maintain diversification among Early 

Stage SBICs with respect to where the 

Early Stage SBIC expects to invest. 

Sean Greene, 

Associate Administrator for Investment and 

Special Advisor for Innovation. 

[FR Doc. 2012–10412 Filed 4–30–12; 8:45 am] 

BILLING CODE 8025–01–P 

SMALL BUSINESS ADMINISTRATION 

SBA Council on Underserved 

Communities 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Notice of open Federal advisory 

committee meeting. 

SUMMARY: The SBA is issuing this notice 

to announce the location, date, time, 

and agenda for the first meeting of the 

SBA Council on Underserved 

Communities Advisory Council. The 

meeting will be open to the public. 

DATES: The meeting will be held on 

Monday, May 7 from 1 to 5 p.m. Central 

Time Zone. 

ADDRESSES: The meeting will be held at 

the SBA Kansas City District Office 

located at 1000 Walnut Street, Suite 

500, Kansas City, MO 64106. 

SUPPLEMENTARY INFORMATION: Pursuant 

to section 10(a)(2) of the Federal 

Advisory Committee Act (5 U.S.C., 

Appendix 2), SBA announces the 

meeting of the SBA Council on 

Underserved Communities. The SBA 

Council on Underserved Communities 

is tasked with providing advice, ideas 

and opinions on SBA programs and 

services and issues of interest to small 

businesses in underserved communities. 

The purpose of the meeting is to 

discuss with the council the current 

status of small business across the 

United States and to discuss the 

agency’s programs and initiatives 

especially in regards to underserved 

communities. The agenda includes an 

update of SBA’s most recent programs 

and initiatives from Deputy 

Administrator Marie Johns as well as a 

meeting open to the public to hear from 

the members of the council. 

FOR FURTHER INFORMATION CONTACT: The 

meeting is open to the public however 

advance notice of attendance is 

requested. Anyone wishing to attend 

and/or make a presentation to the SBA 

Council on Underserved Communities 

should please contact Nicole Nelson by 

May 3rd 2010, by fax or email in order 

to be placed on the agenda. 

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25780 Federal Register / Vol. 77, No. 84 / Tuesday, May 1, 2012 / Notices 

Nicole Nelson, SBA’s Office of 

Entrepreneurship Education, SBA 

Headquarters. 

Email: nicole.nelson@sba.gov. 

Phone: (202) 205–7540, Fax: (202) 

481–0215. 

Additionally, if you need 

accommodations because of a disability 

or require additional information, please 

contact Robbie Moore, Program Support 

Assistant at the SBA Kansas City 

District Office. Phone (816–426–4933); 

Email: robbie.moore@sba.gov. 

Dated: Monday, April 23, 2012. 

Dan Jones, 

SBA Committee Management Officer. 

[FR Doc. 2012–10419 Filed 4–30–12; 8:45 am] 

BILLING CODE P 

DEPARTMENT OF STATE 

[Public Notice 7863] 

Culturally Significant Objects Imported 

for Exhibition Determinations: 

‘‘Rembrandt, Van Dyck, Gainsborough: 

The Treasures of Kenwood House, 

London’’ 

SUMMARY: Notice is hereby given of the 

following determinations: Pursuant to 

the authority vested in me by the Act of 

October 19, 1965 (79 Stat. 985; 22 U.S.C. 

2459), Executive Order 12047 of March 

27, 1978, the Foreign Affairs Reform and 

Restructuring Act of 1998 (112 Stat. 

2681, et seq.; 22 U.S.C. 6501 note, et 

seq.), Delegation of Authority No. 234 of 

October 1, 1999, and Delegation of 

Authority No. 236–3 of August 28, 2000 

(and, as appropriate, Delegation of 

Authority No. 257 of April 15, 2003), I 

hereby determine that the objects to be 

included in the exhibition ‘‘Rembrandt, 

Van Dyck, Gainsborough: The Treasures 

of Kenwood House, London,’’ imported 

from abroad by the American Federation 

of Arts for temporary exhibition within 

the United States, are of cultural 

significance. The objects are imported 

pursuant to loan agreements with the 

foreign owners or custodians. I also 

determine that the exhibition or display 

of the exhibit objects at the following 

Federation member venues for the 

following approximate periods is in the 

national interest: the Museum of Fine 

Arts Houston from on or about June 3 

to on or about September 4, 2012; the 

Milwaukee Museum of Art from on or 

about October 4, 2012 to on or about 

January 6, 2013; the Seattle Art Museum 

from on or about February 14, 2013 to 

on or about May 19, 2013; the Arkansas 

Art Center from on or about June 6, 2013 

to on or about September 8, 2013; and 

at possible additional exhibitions or 

venues yet to be determined. I have 

ordered that Public Notice of these 

Determinations be published in the 

Federal Register. 

FOR FURTHER INFORMATION CONTACT: For 

further information, including a list of 

the exhibit objects, contact Ona M. 

Hahs, Attorney-Adviser, Office of the 

Legal Adviser, U.S. Department of State 

(telephone: 202–632–6473). The mailing 

address is U.S. Department of State, SA– 

5, L/PD, Fifth Floor (Suite 5H03), 

Washington, DC 20522–0505. 

Dated: April 25, 2012. 

J. Adam Ereli, 

Principal Deputy Assistant Secretary, Bureau 

of Educational and Cultural Affairs, 

Department of State. 

[FR Doc. 2012–10509 Filed 4–30–12; 8:45 am] 

BILLING CODE 4710–05–P 

DEPARTMENT OF STATE 

[Public Notice 7862] 

Culturally Significant Objects Imported 

for Exhibition Determinations: ‘‘Gold, 

Jasper, and Carnelian: Johann 

Christian Neuber at the Saxon Court’’ 

SUMMARY: Notice is hereby given of the 

following determinations: Pursuant to 

the authority vested in me by the Act of 

October 19, 1965 (79 Stat. 985; 22 U.S.C. 

2459), Executive Order 12047 of March 

27, 1978, the Foreign Affairs Reform and 

Restructuring Act of 1998 (112 Stat. 

2681, et seq.; 22 U.S.C. 6501 note, et 

seq.), Delegation of Authority No. 234 of 

October 1, 1999, and Delegation of 

Authority No. 236–3 of August 28, 2000 

(and, as appropriate, Delegation of 

Authority No. 257 of April 15, 2003), I 

hereby determine that the objects to be 

included in the exhibition ‘‘Gold, 

Jasper, and Carnelian: Johann Christian 

Neuber at the Saxon Court,’’ imported 

from abroad for temporary exhibition 

within the United States, are of cultural 

significance. The objects are imported 

pursuant to loan agreements with the 

foreign owners or custodians. I also 

determine that the exhibition or display 

of the exhibit objects at the Frick 

Collection, New York, New York, from 

on or about May 29, 2012, until on or 

about August 19, 2012, and at possible 

additional exhibitions or venues yet to 

be determined, is in the national 

interest. I have ordered that Public 

Notice of these Determinations be 

published in the Federal Register. 

FOR FURTHER INFORMATION CONTACT: For 

further information, including a list of 

the exhibit objects, contact Paul W. 

Manning, Attorney-Adviser, Office of 

the Legal Adviser, U.S. Department of 

State (telephone: 202–632–6469). The 

mailing address is U.S. Department of 

State, SA–5, L/PD, Fifth Floor (Suite 

5H03), Washington, DC 20522–0505. 

Dated: April 24, 2012. 

J. Adam Ereli, 

Principal Deputy Assistant Secretary, Bureau 

of Educational and Cultural Affairs, 

Department of State. 

[FR Doc. 2012–10506 Filed 4–30–12; 8:45 am] 

BILLING CODE 4710–05–P 

DEPARTMENT OF STATE 

[Public Notice 7864] 

Determination and Waiver of Section 

7070(a) of the Department of State, 

Foreign Operations, and Related 

Programs Appropriations Act, 2012 

(Division I, Public Law 112–74 (‘‘the 

Act’’) Relating to Assistance for the 

Independent States of the Former 

Soviet Union 

Pursuant to the authority vested in me 

as Deputy Secretary of State, including 

by Section 7070(a) of the Department of 

State, Foreign Operations, and Related 

Programs Appropriations Act, 2012 

(Division I, Pub. L. 112–74), (‘‘the Act’’), 

Executive Order 12163, as amended by 

Executive Order 13118, and State 

Department Delegation of Authority No. 

245–1, I hereby determine that it is in 

the national security interest of the 

United States to make available funds 

appropriated under the heading 

‘‘Assistance for Europe, Eurasia and 

Central Asia’’ of the Act, without regard 

to the restriction in section 7070(a). 

This Determination shall be reported 

to the Congress and published in the 

Federal Register. 

Dated: April 13, 2012. 

William J. Burns, 

Deputy Secretary of State. 

[FR Doc. 2012–10511 Filed 4–30–12; 8:45 am] 

BILLING CODE 4710–23–P 

DEPARTMENT OF STATE 

[Public Notice 7819] 

Advisory Committee on the Secretary 

of State’s Strategic Dialogue With Civil 

Society 

ACTION: Notice of meeting. 

SUMMARY: Pursuant to the provisions of 

the Federal Advisory Committee Act 

(FACA), the Advisory Committee on the 

Secretary of State’s Strategic Dialogue 

with Civil Society will convene in 

Washington, DC on May 16, 2012. The 

Committee provides advice on the 

formulation of U.S. policies, proposals, 

and strategies for engagement with, and 

protection of, civil society worldwide. 

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