On August 14, 2019, the U.S. Small Business Administration
(“SBA”) announced that it will charge a new fee on
draws of committed SBA leverage made on and after October 1,
2019.
The new fee will be a one-time fee withheld from the proceeds of
leverage draws equal to 0.01% of the face amount of regular
Debentures but will not apply to Early Stage, LMI, or Energy
Savings Debentures. The fee will be used to compensate SBA’s
Trustee (The Bank of New York Mellon) for services related to the
pooling of SBIC Debentures and servicing of the Trust
Certificates.
SBA also announced that it will replace fax numbers with email
addresses in the Approval Notices issued by SBA in connection with
all draw requests. SBA will now e-mail (rather than fax) Approval
Notices to SBICs for each approved draw down of leverage and in
order to take down funds, SBICs will then email (rather than fax)
executed Approval Notices to The Bank of New York Mellon at the
e-mail address set forth in
