CFR
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107.120—Special rules for a Section 301(d) Licensee owned by another Licensee.
With SBA's prior written approval, a Section 301(d) Licensee may operate as the subsidiary of one or more Licensees (participant Licensees), subject to the following:
(a)
Each participant Licensee must own at least 20 percent of the voting securities of the Section 301(d) Licensee.
(b)
A participant Licensee must treat its entire capital contribution to the subsidiary as a reduction of its Leverageable Capital. The participant Licensee's remaining Leverageable Capital must be sufficient to support its outstanding Leverage.
Code of Federal Regulations
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