FR 2021-03876

The document presents a formal notice from the United States Small Business Administration (SBA) regarding the nullification of a license held by Patriot Capital II, L.P. According to the authority vested in the SBA through the Small Business Investment Act of 1958, the license allowing Patriot Capital II, L.P. to operate as a Small Business Investment Company (SBIC) is now void. This decision was announced by Thomas G. Morris, the Acting Associate Administrator and Director of the Office of SBIC Liquidation.

General Summary

The notice is an official communication declaring that the license previously granted to Patriot Capital II, L.P., for functioning as a small business investment company, has been nullified. This action stems from the SBA's mandate to oversee and regulate SBICs under specific statutes and regulations outlined by the Small Business Investment Act.

Significant Issues or Concerns

The document lacks an abstract or comprehensive explanation, leaving questions unanswered about the specifics of why the license was deemed null and void. There is also minimal information provided regarding the legal references cited in the document, such as the Small Business Investment Act of 1958 and the particular sections of the Code of Federal Regulations (CFR). This might make the notice challenging for individuals without a legal background to comprehend fully.

Additionally, there is no clarity on the process or criteria by which this decision was made. This lack of transparency can lead to confusion or misinterpretation of the SBA's actions and might undermine public trust in the administrative procedures.

Public Impact

For the general public, especially those involved in small business financing, this decision might reinforce the importance of regulatory compliance for companies operating under the SBA's purview. While the document does not provide the specific reasons behind the license nullification, it serves as a reminder of the oversight function performed by regulatory bodies like the SBA.

Stakeholder Impact

For stakeholders directly involved with Patriot Capital II, L.P., such as investors or small businesses receiving funding, the implications are more pronounced. The loss of the SBIC license could signal a disruption in funding or support that was being provided by the firm. Small businesses relying on this investment company might need to seek other funding avenues, potentially affecting their operations or growth plans.

Overall, while the document is a straightforward announcement of a regulatory decision, it opens avenues for further inquiry into the procedural fairness and potential repercussions for those involved. Being aware of such regulatory actions is crucial for stakeholders to navigate the complexities of business investment and compliance.