Federal Register / Vol. 81, No. 21 / Tuesday, February 2, 2016 / Notices 5511 

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. SBA will permit only the sole 

following condition on private capital 

commitments: the receipt of an 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. If SBA receives an extraordinary 

number of qualified applicants in FY 

2016, it may not approve all such 

applicants in the same Fiscal Year. 

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. 

Michele Schimpp, 

Deputy Associate Administrator Office of 

Investment and Innovation. 

[FR Doc. 2016–01879 Filed 2–1–16; 8:45 am] 

BILLING CODE 8025–01–P 

DEPARTMENT OF TRANSPORTATION 

Maritime Administration 

[Docket No. MARAD–2016 0001] 

Requested Administrative Waiver of 

the Coastwise Trade Laws: Vessel 

NN59; Invitation for Public Comments 

AGENCY: Maritime Administration, 

Department of Transportation. 

ACTION: Notice. 

SUMMARY: As authorized by 46 U.S.C. 

12121, the Secretary of Transportation, 

as represented by the Maritime 

Administration (MARAD), is authorized 

to grant waivers of the U.S.-build 

requirement of the coastwise laws under 

certain circumstances. A request for 

such a waiver has been received by 

MARAD. The vessel, and a brief 

description of the proposed service, is 

listed below. 

DATES: Submit comments on or before 

March 3, 2016. 

ADDRESSES: Comments should refer to 

docket number MARAD–2016–0001. 

Written comments may be submitted by 


wgreen on DSK2VPTVN1PROD with NOTICES
5512 Federal Register / Vol. 81, No. 21 / Tuesday, February 2, 2016 / Notices 

hand or by mail to the Docket Clerk, 

U.S. Department of Transportation, 

Docket Operations, M–30, West 

Building Ground Floor, Room W12–140, 

1200 New Jersey Avenue SE., 

Washington, DC 20590. You may also 

send comments electronically via the 

Internet at http://www.regulations.gov. 

All comments will become part of this 

docket and will be available for 

inspection and copying at the above 

address between 10 a.m. and 5 p.m., 

E.T., Monday through Friday, except 

federal holidays. An electronic version 

of this document and all documents 

entered into this docket is available on 

the World Wide Web at http://

www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: 

Bianca Carr, U.S. Department of 

Transportation, Maritime 

Administration, 1200 New Jersey 

Avenue SE., Room W23–465, 

Washington, DC 20590. Telephone 202– 

366–9309, Email Bianca.carr@dot.gov. 

SUPPLEMENTARY INFORMATION: As 

described by the applicant the intended 

service of the vessel NN59 is: 

Intended Commercial Use of Vessel: 

‘‘Teach sailing, take maritime heritage 

tourists, other user groups on the 

Sailboat’s geographic region intended 

operation.’’ 

Geographic Region: ‘‘Washington 

State, Oregon, Alaska (excluding waters 

in Southeastern Alaska and waters north 

of a line between Gore Point to Cape 

Suckling [including the North Gulf 

Coast and Prince William Sound]).’’ 

The complete application is given in 

DOT docket MARAD–2016–0001 at 

http://www.regulations.gov. Interested 

parties may comment on the effect this 

action may have on U.S. vessel builders 

or businesses in the U.S. that use U.S.- 

flag vessels. If MARAD determines, in 

accordance with 46 U.S.C. 12121 and 

MARAD’s regulations at 46 CFR part 

388, that the issuance of the waiver will 

have an unduly adverse effect on a U.S.- 

vessel builder or a business that uses 

U.S.-flag vessels in that business, a 

waiver will not be granted. Comments 

should refer to the docket number of 

this notice and the vessel name in order 

for MARAD to properly consider the 

comments. Comments should also state 

the commenter’s interest in the waiver 

application, and address the waiver 

criteria given in § 388.4 of MARAD’s 

regulations at 46 CFR part 388. 

Privacy Act 

Anyone is able to search the 

electronic form of all comments 

received into any of our dockets by the 

name of the individual submitting the 

comment (or signing the comment, if 

submitted on behalf of an association, 

business, labor union, etc.). You may 

review DOT’s complete Privacy Act 

Statement in the Federal Register 

published on April 11, 2000 (Volume 

65, Number 70; Pages 19477–78). 

By Order of the Maritime Administrator. 

Dated: January 12, 2016. 

Thomas M. Hudson, Jr., 

Secretary, Maritime Administration. 

[FR Doc. 2016–01874 Filed 2–1–16; 8:45 am] 

BILLING CODE 4910–81–P 

DEPARTMENT OF TRANSPORTATION 

Maritime Administration 

[Docket No. MARAD–2016 0006] 

Inventory of U.S.-Flag Launch Barges 

AGENCY: Maritime Administration, 

Department of Transportation. 

ACTION: Inventory of U.S.-flag launch 

barges. 

SUMMARY: The Maritime Administration 

is updating its inventory of U.S.-flag 

launch barges. Additions, changes and 

comments to the list are requested. 

Launch barge information may be found 

at http://www.marad.dot.gov/ships-andshipping/domestic-shipping/launchbarge-program/. 

DATES: Any comments on this inventory 

should be submitted in writing to the 

contact person by March 3, 2016. 

FOR FURTHER INFORMATION CONTACT: 

Michael Hokana, Office of Cargo and 

Commercial Sealift, Maritime 

Administration, MAR–620, 1200 New 

Jersey Avenue SE., Washington, DC 

20590. Telephone 202–366–0760; email: 

Michael.Hokana@dot.gov. 

SUPPLEMENTARY INFORMATION: Pursuant 

to 46 CFR part 389 (Docket No. 

MARAD–2008–0045) Determination of 

Availability of Coastwise-Qualified 

Vessels for the Transportation of 

Platform Jackets, the Final Rule requires 

that the Maritime Administration 

publish a notice in the Federal Register 

requesting that owners or operators (or 

potential owners or operators) of 

coastwise qualified launch barges notify 

us of: (1) Their interest in participating 

in the transportation and, if needed, the 

launching or installation of offshore 

platform jackets; (2) the contact 

information for their company; and, (3) 

the specifications of any currently 

owned or operated coastwise qualified 

launch barges or plans to construct 

same. In addition, we are also seeking 

information on non-coastwise qualified 

(U.S.-flag) launch barges as well. 

Privacy Act 

Anyone is able to search the 

electronic form of all comments 

received into any of our dockets by the 

name of the individual submitting the 

comment (or signing the comment, if 

submitted on behalf of an association, 

business, labor union, etc.). You may 

review DOT’s complete Privacy Act 

Statement in the Federal Register 

published on April 11, 2000 (Volume 

65, Number 70; Pages 19477–78). 

By Order of the Maritime Administrator. 

Dated: January 12, 2016. 

T. Mitchell Hudson, Jr., 

Secretary, Maritime Administration. 

REPORTED U.S.-FLAG LAUNCH BARGES

Vessel name Owner Built Length 

(ft.) 

Beam 

(ft.) 

DWT 

(L. T.) 

Approx launch 

capacity 

(L. T.) 

Coaswise 

qualified 

455 4 ....................... Crowley Marine 

Services.

2009 400 105 19,226 18,766 X 

455 5 ....................... Crowley Marine 

Services.

2009 400 105 19,226 18,766 X 

455 6 ....................... Crowley Marine 

Services.

2009 400 105 19,226 18,766 X 

455 7 ....................... Crowley Marine 

Services.

2009 400 105 19,226 18,766 X 

455 8 ....................... Crowley Marine 

Services.

2010 400 105 19,226 18,766 X 

455 9 ....................... Crowley Marine 

Services.

2010 400 105 19,226 18,766 X 


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