The U.S. Small Business Administration (SBA) released its Notice of Annual Recertification on May 16, 2011. Annual recertification is required for all Small Business Investment Company Licensees (Licensees) who have unfunded commitments from Institutional Investors and outstanding SBA leverage, or a SBA leverage commitment, or both. This requirement is part of the SBA’s ongoing efforts to ensure that Institutional Investors remain qualified investors and that Regulatory Capital is accurately reported.

Licensees who are required to be recertified should submit either:

Option 1: a new Capital Certificate that has been updated for all changes in the Licensee’s Institutional Investors and/or Regulatory Capital; or

Option 2: a letter certifying that a review of the Licensee’s unfunded commitments from Institutional Investors revealed that no changes to the Licensee’s most recently filed Capital Certificate were required.

Licensees must submit the appropriate Capital Certificate or certification letter to their assigned SBA operations analyst by the filing deadline.

Filing Deadlines

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Licensees licensed after Oct. 1, 2010 are not required to complete the recertification process.