Higher individual minimum capital requirement.

§ 120.472 Higher individual minimum capital requirement. The Associate Administrator for Capital Access (AA/CA) may require, under § 120.473(d), an SBLC to maintain a higher level of capital, if the AA/CA determines, in his/her discretion, that the SBLC's level of capital is potentially inadequate to protect the SBA from loss due to the financial failure of the SBLC. The factors to be considered in the determination will vary in each case and may include, for example: (a) Specific conditions or circumstances pertaining to the SBLC; (b) Exigency of those circumstances or potential problems; (c) Overall condition, management strength, and future prospects of the SBLC and, if applicable, its parent or affiliates; (d) The SBLC's liquidity and existing capital level, and the performance of its SBA loan portfolio; (e) The management views of the SBLC's directors and senior management; and (f) Other risk-related factors, as determined by SBA. [73 FR 75516, Dec. 11, 2008]