6668 Federal Register / Vol. 79, No. 23 / Tuesday, February 4, 2014 / Notices 

Class B limited partners to the Early 

Stage SBIC is reduced dollar for dollar 

as the parent fund contributes capital to 

the SBIC. The Model LPA contains 

required provisions for drop-down 

funds. 

f. The Class B limited partners’ 

commitments to the SBIC applicant 

must be expressed as a specific dollar 

amount (not just as the ‘‘proportionate 

share’’ of parent fund’s commitment). 

g. The total dollar amount of Class B 

commitments must be equal to the Class 

A limited partner’s unfunded 

commitment to the SBIC. SBA will not 

require Class B commitments if the 

SBIC’s Regulatory Capital will not 

include any unfunded commitments 

from the Class A limited partner. 

C. Capitalization. Applicants must 

raise the minimum $20 million in 

Regulatory Capital by the time the 

license application is submitted. 

1. Capital commitments from limited 

partners must be made directly to the 

SBIC (and its parent fund, in the case of 

a drop-down) with no intermediaries 

involved. 

2. The Early Stage SBIC applicant 

must have the unconditional ability to 

legally enforce collection of each capital 

commitment. 

3. Capital Certificate. Capital 

commitments must be documented in 

the capital certificate (Exhibit K of SBA 

Form 2183) and comply with the 

following: 

a. A signed Capital Certificate must be 

submitted with the license application. 

b. The only permitted condition on 

private capital commitments is: 

i. Receipt of Early Stage SBIC license. 

c. Individual investors must list 

primary residence address, not a 

business address. 

d. Street addresses are required (no 

P.O. Box addresses). 

4. A dual commitment may be 

obtained to back up the commitment of 

any direct investor in the SBIC who is 

not an Institutional Investor. 

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 four 

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 13 

CFR 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. If SBA receives 

an extraordinary number of qualified 

applicants in FY 2014, it may not 

approve all such applicants. 

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 the 

geographic location in which the Early 

Stage SBIC expects to invest. 

Javier Saade, 

Associate Administrator, Office of Investment 

and Innovation. 

[FR Doc. 2014–02225 Filed 2–3–14; 8:45 am] 

BILLING CODE 8025–01–P 

DEPARTMENT OF STATE 

[Public Notice 8619] 

In the Matter of the Designation of 

Ziyad al-Nakhalah Also Known as 

Ziyad Rushdi al-Nakhalah Also Known 

as Ziyad Rushdi Husayn Also Known 

as Abu Tariq as a Specially Designated 

Global Terrorist Pursuant to Section 

1(b) of Executive Order 13224, as 

Amended 

Acting under the authority of and in 

accordance with section 1(b) of 

Executive Order 13224 of September 23, 

2001, as amended by Executive Order 

13268 of July 2, 2002, and Executive 

mstockstill on DSK4VPTVN1PROD with NOTICES

Federal Register / Vol. 79, No. 23 / Tuesday, February 4, 2014 / Notices 6669 

Order 13284 of January 23, 2003, I 

hereby determine that the individual 

known as Ziyad al-Nakhalah, also 

known as Ziyad Rushdi al-Nakhalah, 

also known as Ziyad Rushdi Husayn, 

also known as Abu Tariq, committed, or 

poses a significant risk of committing, 

acts of terrorism that threaten the 

security of U.S. nationals or the national 

security, foreign policy, or economy of 

the United States. 

Consistent with the determination in 

section 10 of Executive Order 13224 that 

‘‘prior notice to persons determined to 

be subject to the Order who might have 

a constitutional presence in the United 

States would render ineffectual the 

blocking and other measures authorized 

in the Order because of the ability to 

transfer funds instantaneously,’’ I 

determine that no prior notice needs to 

be provided to any person subject to this 

determination who might have a 

constitutional presence in the United 

States, because to do so would render 

ineffectual the measures authorized in 

the Order. 

This notice shall be published in the 

Federal Register. 

Dated: January 28, 2014. 

John F. Kerry, 

Secretary of State. 

[FR Doc. 2014–02287 Filed 2–3–14; 8:45 am] 

BILLING CODE 4710–10–P 

DEPARTMENT OF STATE 

[Public Notice 8618] 

Department of State FY12 Service 

Contract Inventory 

AGENCY: Department of State. 

ACTION: Notice of the release of the 

Department of State FY 12 Service 

Contract Inventory. 

SUMMARY: The Department of State has 

publically released its Service Contract 

Inventory for FY 13 and its analysis of 

the FY 12 inventory. They are available 

here: http://csm.state.gov/

content.asp?content_id=135&menu_

id=71. 

Section 743 of Division C of the FY 

2010 Consolidated Appropriations Act, 

Public Law 111–117, requires 

Department of State, and other civilian 

agencies, to submit an annual inventory 

of service contracts. A service contract 

inventory is a tool to assess an agency 

in its ability to contract services in 

support of its mission and operation and 

whether the contractors’ skills are being 

utilized in an appropriate manner. 

DATES: The FY 13 inventory and FY 12 

analysis is available on the 

Department’s Web site as of January 30, 

2014. 

FOR FURTHER INFORMATION CONTACT: 

Barry Thomas, Division Chief, A/EX/

CSM, 202–485–7190, BarryTD2@

state.gov. 

Dated: January 30, 2014. 

Barry Thomas, 

Division Chief, A/EX/CSM, Department of 

State. 

[FR Doc. 2014–02286 Filed 2–3–14; 8:45 am] 

BILLING CODE 4710–24–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

Agency Information Collection 

Activities: Requests for Comments; 

Clearance of Renewed Approval of 

Information Collection: Certification: 

Pilots and Flight Instructors 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notice and request for 

comments. 

SUMMARY: In accordance with the 

Paperwork Reduction Act of 1995, FAA 

invites public comments about our 

intention to request the Office of 

Management and Budget (OMB) 

approval to renew an information 

collection. The Federal Register Notice 

with a 60-day comment period soliciting 

comments on the following collection of 

information was published on 

November 27, 2013, vol. 78, no. 229, 

page 71023–71024. 14 CFR part 61 

prescribes certification standards for 

pilots, flight instructors, and ground 

instructors. The information collected is 

used to determine compliance with 

applicant eligibility. 

DATES: Written comments should be 

submitted by March 6, 2014. 

FOR FURTHER INFORMATION CONTACT: 

Kathy DePaepe at (405) 954–9362, or by 

email at: Kathy.DePaepe@faa.gov. 

SUPPLEMENTARY INFORMATION: 

OMB Control Number: 2120–0021. 

Title: Certification: Pilots and Flight 

Instructors. 

Form Numbers: FAA Form 8710–1. 

Type of Review: Renewal of an 

information collection. 

Background: Title 14 of the Code of 

Federal Regulations part 61 (14 CFR part 

61) Certification: Pilots, Flight 

Instructors, and Ground Instructors 

prescribes minimum standards and 

requirements for the issuance of airman 

certificates, and establishes procedures 

for applying for airman certificates. The 

Airman Certificate and/or Rating 

Application form and the required 

records, logbooks and statements 

required by the federal regulations are 

submitted to Federal Aviation 

Administration (FAA) Flight Standards 

District Offices or its representatives to 

determine qualifications of the 

applicant for issuance of a pilot or 

instructor certificate, or rating or 

authorization. 

Respondents: Approximately 175,000 

certificated pilots. 

Frequency: Information is collected 

on occasion. 

Estimated Average Burden per 

Response: Approximately 2.15 hours. 

Estimated Total Annual Burden: 

301,344 hours. 

ADDRESSES: Interested persons are 

invited to submit written comments on 

the proposed information collection to 

the Office of Information and Regulatory 

Affairs, Office of Management and 

Budget. Comments should be addressed 

to the attention of the Desk Officer, 

Department of Transportation/FAA, and 

sent via electronic mail to oira_

submission@omb.eop.gov, or faxed to 

(202) 395–6974, or mailed to the Office 

of Information and Regulatory Affairs, 

Office of Management and Budget, 

Docket Library, Room 10102, 725 17th 

Street NW., Washington, DC 20503. 

Public Comments Invited: You are 

asked to comment on any aspect of this 

information collection, including (a) 

Whether the proposed collection of 

information is necessary for FAA’s 

performance; (b) the accuracy of the 

estimated burden; (c) ways for FAA to 

enhance the quality, utility and clarity 

of the information collection; and (d) 

ways that the burden could be 

minimized without reducing the quality 

of the collected information. The agency 

will summarize and/or include your 

comments in the request for OMB’s 

clearance of this information collection. 

Issued in Washington, DC, on January 29, 

2014. 

Albert R. Spence, 

FAA Assistant Information Collection 

Clearance Officer, IT Enterprises Business 

Services Division, ASP–110. 

[FR Doc. 2014–02326 Filed 2–3–14; 8:45 am] 

BILLING CODE 4910–13–P 

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