Portfolio Financing Report

Instructions for Form 1031
Small Business Investment Company
(SBIC) Portfolio Financing Report
Version 2.0

Date: 2/12/2025
Prepared by the
Office of Investment and Innovation
U.S. Small Business Administration

Instructions for Form 1031
Small Business Investment Company Portfolio Financing Report

Table of Contents
I.

Introduction ....................................................................................................................... 1

II.

SBA Form 1031 Overview ................................................................................................... 2
A.

Purpose........................................................................................................................... 2

B.

General Structure ........................................................................................................... 2

C.

Limitations...................................................................................................................... 2

D.

Other References ............................................................................................................ 3

III. Form 1031 Requirements .................................................................................................. 4
A.

System Requirements .................................................................................................... 4

B.

Due Date and Filing Requirements................................................................................. 4

IV. Form 1031 Workbook Navigation and General Features.................................................. 4
A.

Navigation ...................................................................................................................... 4

B.

General Features ............................................................................................................ 4

V.

Completing the Form 1031 ................................................................................................ 6

A.

Part A – Small Business .................................................................................................. 7

B.

Part B – Pre-Financing Data .......................................................................................... 12

C.

Part C – Financing Information .................................................................................... 13

D.

Part D – Passive Business Financing Information. ....................................................... 17

E.

Part E – General Information ........................................................................................ 17

F.

Certification .................................................................................................................. 17

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Instructions for Form 1031
Small Business Investment Company Portfolio Financing Report

List of Exhibits

Exhibit II-1: Form 1031 Section List ......................................................................................... 2
Exhibit IV-1: Form 1031 Workbook Key Features .................................................................... 5
Exhibit IV-2: Field Description Example................................................................................... 5
Exhibit IV-3: Form 1031 Field Selection Example .................................................................... 6
Exhibit IV-4: Form 1031 Column Expansion ............................................................................ 6
Exhibit V-1: Part A – Small Business Data Mandatory Fields................................................... 7
Exhibit V-2: Part A – Small Business Data Voluntary Fields .................................................... 8
Exhibit V-3: Part B – Pre-Financing Data................................................................................. 12
Exhibit V-4: Part C – Financing Information ........................................................................... 13

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Instructions for Form 1031
Small Business Investment Company Portfolio Financing Report

I. Introduction
This document provides instructions on how to complete the Small Business
Administration (“SBA”) Form 1031 Small Business Investment Company (“SBIC”) Portfolio
Financing Report (“Form 1031”).
Prior to this version, SBICs were required to submit information 30 calendar days after each
Financing as separate forms. SBICs were then required to submit an annual certification on all
of the financings from the previous year under Form 1031a. As an example, if a Licensee made
25 financings over the course of a year, they would submit 25 Form 1031s and then submit a
1031a after the end of a year (i.e., 26 submissions total).
SBA is revising its regulations and the requirements for the Form 1031such that SBICs may
submit 4 Form 1031s a year, one form for all financings that occurred in the previous calendar
year quarter, 30 days after the close of that quarter. As part of this single quarterly submission,
the Licensee will certify to those financings as part of this submission. Using the previous
example, instead of 26 submissions (25 Form 1031s and 1 Form 1031a), the Licensee would
submit 4 Form 1031s, 1 for each quarter.
To further simplify the Form 1031 process for Licensees, SBA has decided to collect the
Form 1031 in a Microsoft Excel workbook. This is intended to give SBICs more flexibility and
control of the process, by allowing them to provide entry in a product in which they are familiar
and can easily import or cut and paste information. After certifying that the that the
information contained in the Form 1031 is complete and correct to the best of your knowledge
your belief, you will then submit the file to SBA through a secure portal.
This document provides an overview of the different parts of the Form 1031 and how to
complete the Form 1031.

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Instructions for Form 1031
Small Business Investment Company Portfolio Financing Report

II. SBA Form 1031 Overview
A. Purpose
The SBA Form 1031 collects Portfolio Concern Financing information SBA also pools
information provided by individual SBICs to analyze the SBIC program as a whole and the
impact of SBIC Financings on the growth of small business.
The information provided is protected to the extent permitted by law, including
Exemptions, 4, 6 and 8 of the Freedom of Information Act (FOIA) 5 U.S.C. 552, which allow SBA
to exempt from disclosure financial data on individual companies.
B. General Structure
The SBA Form 1031 is contained in the SBA Form 1031 Workbook, comprised of the
worksheets (or tabs) identified below:
Exhibit II-1: Form 1031 Section List
Form 1031 Worksheet Tab
Part A Small Business Data

Part B Pre-Financing Data
Part C Financing Information
Parts D and E
Certification

Description
Contains general information on the portfolio company / small business being financed,
including the name, employer identification number, the North American Industry Classification
System
(NAICS) code, location, contact information, general information, and voluntary demographic
information regarding ownership and key persons.
Contains information regarding the company prior to the Financing, including status, stage,
enterprise value, employees, and financial information.
Contains key information regarding the Financing, including relevant dates, Licensee’s
participation, deal information, interest rates, ownership, purpose (or uses) of the financing and
other critical information needed to help assess regulatory compliance.
Part D provides instructions regarding required passive business financing information if the
Licensee uses a passive business to finance its portfolio company. Part E provides general
information regarding the SBA Form 1031.
This contains the Licensee’s certification of the financings.

A tab is also provided to help the SBIC search for the appropriate North American Industry
Classification System (NAICS) codes for entry into Part A.
C. Limitations
The provided Excel Workbook performs several computations throughout to help populate
the various schedules and statements. SBA has locked the workbook and the corresponding
formulas.
Since SBA imports the data from this form into its own databases, SBA is expecting the
format presented in the provided workbook. As such, SBA will reject any submission that
alters the format or placement of the data.
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Instructions for Form 1031
Small Business Investment Company Portfolio Financing Report

To the extent that such Licensee believes that the form template is incorrectly calculating
any value or that a calculated value should be changed in order to report fund metrics
accurately, the Licensee is required to take the following steps:
a. Complete the Form provided by SBA, without modification;
b
Print and sign the form and make any necessary corrections using red
ink (on the hard copy), with the editor’s initials beside any correction;
c. Provide a written explanation, signed by management, as to each
correction; and d

Forward the corrected Form 1031, with signed

explanation, to its respective SBA
Operations Analyst, in .pdf form, on or before the date on which the Form 1031 is
due.
D. Other References
In order for SBA to monitor its SBICs in a consistent manner, SBA has also established
several documents that should be used as references in completing your Form 1031, as
follows:
•

SBIC Regulations 13 CFR 107: This contains the regulations for the SBIC program,
including definitions of several of the terms used in the preparation of the Form
1031. The regulations also establish the general reporting requirements for the
Form 1031.

•

Accounting Standards and Financial Reporting Requirements: This document
provides guidance to SBICs on accounting policies and procedures, financial
reporting to SBA, and selection of an auditor.

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Instructions for Form 1031
Small Business Investment Company Portfolio Financing Report

III. Form 1031 Requirements
A. System Requirements
You will need a Microsoft Excel compatible with Version 2016 or Microsoft 365 to complete
the Microsoft Excel workbook. You will also need internet access such that you can submit your
workbook and any supplemental material to SBA’s secure portal.
B. Due Date and Filing Requirements
All SBICs are required to submit the Form 1031 within 30 calendar days following the end
of the calendar year quarter in which the financing closed.
For example, if a Licensee closes a financing on February 10, 2023, another financing on
March 15, 2023, and a third financing on March 31, 2023, the Licensee will need to submit the
related Form 1031 no later than April 30, 2023, containing all three of these financings.
If SBA places a Licensee on the Watch List as described in 13 CFR § 107.1850, SBA may
require more frequent reporting.

IV. Form 1031 Workbook Navigation and General Features
A. Navigation
Each of the sections in Exhibit II-1 represent a separate worksheet/tab within the Form 1031
workbook. You may go to each worksheet by clicking on the tab at the bottom.
B. General Features
The following exhibit shows several of the key features discussed in this section.

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Instructions for Form 1031
Small Business Investment Company Portfolio Financing Report
Exhibit IV-1: Form 1031 Workbook Key Features

Each of these features is explained below,
1. Fields (Data Entry and Calculated): As a general rule, the fields that need to be

completed are white or unshaded. Shaded cells represent titles or formulas that are
calculated or attempt to look up a value elsewhere.
2. Field Explanations: Most data fields will also provide a description of the field. The

exhibit below provides an example of this feature for portfolio company name in
Part A.
Exhibit IV-2: Field Description Example

3. Drop Down Fields: Several of the input cells have drop down menus from which you

may select values, such as the State field. When you click on the field, you will see if
there are selections.

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Instructions for Form 1031
Small Business Investment Company Portfolio Financing Report
Exhibit IV-3: Form 1031 Field Selection Example

4. Group Expand/Collapse: Because the worksheets contain a large number of columns,

columns are often grouped together and collapsed in order to help you navigate the
form easier. You can expand the columns by clicking on “+” above the excel column
and collapse the columns by clicking on “-“. For example, the data regarding
portfolio company location is grouped in columns. The following exhibit shows how
this can be expanded in order to enter the associated data.
Exhibit IV-4: Form 1031 Column Expansion

V. Completing the Form 1031
This section will provide general instructions for completing the Form 1031. You should
navigate to the appropriate tab as described in Section IV-A. Throughout the form, SBA has tried
to minimize input by calculating fields and pulling information entered elsewhere in the form.
These fields will be described in this section and clearly identified by bold italics and
highlighting in blue.
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Instructions for Form 1031
Small Business Investment Company Portfolio Financing Report

A. Part A – Small Business
Part A, located on the first worksheet tab, provides information about the portfolio
company being financed. For each portfolio company you Finance during the reporting period,
you must complete the data as described in the table below. If you provided multiple
financings for the same portfolio concern during the reporting period, you need only
provide one row of data for the portfolio concern in Part A.
Exhibit V-1: Part A – Small Business Data Mandatory Fields
Field/Label
For calendar year
quarter beginning
Name of Licensee
License No.
Portfolio
Company Name

Instructions/Description
Enter the first date of the calendar year quarter (1/1, 4/1, 7/1, or 10/1) for
which you are reporting your financings in mm/dd/yyyy format. For
example, if you are reporting for the first quarter of calendar year 2023, you
would enter: 01/01/2023).
Ener the name of your SBIC.
Enter your 9-digit SBIC license number as a whole number. The form will
automatically format it into the license number format.
Enter the name of the operating portfolio concern. If you provided
financing to a passive business (see 13 CFR 107.720(b)):
•

With a single operating subsidiary – enter the name of the
operating portfolio concern and follow the instructions for Part D –
Passive Business Financing Information.

•

With more than one operating subsidiary – enter the name of the
passive business you financed and follow the instructions for Part D
– Passive Business Financing Information.

If you directly financed an operating portfolio concern with subsidiaries,
you only need to enter the name of the consolidated operating entity.

Employer ID

NAICS Code and
Industry
Location

•
•
•
•
•

Street Address
City
Zip Code
County
State

Enter the portfolio concern’s 9-digit employer ID number as a whole
number. The worksheet will format the number appropriately. If the
company is newly formed and awaiting an employer ID number, enter as
"A- mmddyyyy" where "mmddyyyy" indicates the date it applied.
Select the 2022 NAICS Code and Industry for the portfolio company. If you
need help identifying the NAICS code, use the search tool located on tab
NAICS Search (accessible by clicking on “Search” in cell C6 or you can go to
North American Industry Classification System (NAICS) U.S. Census Bureau.
These columns identify the location for the main headquarters for the
portfolio company being financed.
Expand the columns by clicking on the “+” above column I.
You may collapse the columns by clicking on the “-“ above column I.
Enter the street address for the portfolio company’s headquarters.
Enter the city for the portfolio company’s headquarters office.
Enter the zip code for the portfolio company’s headquarters office.
Enter the county for the portfolio company’s headquarters office.
Select the State abbreviation associated with the State of portfolio
company’s headquarters office.

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Instructions for Form 1031
Small Business Investment Company Portfolio Financing Report
Contact

These columns identify the name and email address for the person that
SBA may contact at the portfolio company to validate financing
information.
Expand the columns by clicking on the “+” above the column.
You may collapse the columns by clicking on the “-“ above the column.

•
First Name
•
Last Name
•
Email Address
Other

Enter the first name for the contact person.
Enter the last name for the contact person.
Enter the email address for the contact person.
These columns identify other information of interest to SBA in evaluating
the Licensee.
Expand the columns by clicking on the “+” above the column .
You may collapse the columns by clicking on the “-“ above the column .
Select the business form/structure from the following:

•

Form of Business

•

Smaller Enterprise?

•

Date
Business
Established
Technology
Developed
with SBIR/STTR
Funding?

•

•
•

SBIC/STTR
Award Name
Website

Sole proprietorship
Partnership
LLC - Limited Liability Company
C Corporation
S Corporation
B Corporation
Cooperative
Other Corporation
Identify whether the portfolio company at the time of financing qualifies
as a smaller enterprise, as defined in §107.710.
Identify the date the small business concern was established. If the
company was formed as a result of an acquisition, identify the date of the
acquisition.
If the company either received a Small Business Innovation
Research/Small Business Technology Transfer (SBIR/STTR) grant or the
company owns the intellectual property associated with technology that
was funded in part with a SBIR/STTR grant, select “Yes”. Otherwise,
select “No”.
Enter the name of the SBIR/STTR award winner referenced in the previous
question.
Enter the Uniform Resource Locator (URL) address for the portfolio
concern’s website if they have a website. If they do not have a website,
enter “None”.

The exhibit below identifies voluntary demographic information regarding the portfolio
concern financed. The information is on a voluntary basis only and will be used by SBA to assess
program impact and report summary statistics.
Privacy Act Statement: The Small Business Investment Act of 1958, as amended, 15 U.S.C.
661, et seq. authorizes the Small Business Administration (SBA) to collect the information on this
form. Your disclosure of the information is voluntary. The SBA will not deny eligibility if you
refuse to disclose the voluntary information. The SBIC-Web serves as a centralized and
automated framework for the organization, retrieval, and analysis of SBIC information which
supports the SBA’s oversight and risk management roles for the SBIC program.

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Instructions for Form 1031
Small Business Investment Company Portfolio Financing Report
Exhibit V-2: Part A – Small Business Data Voluntary Fields
Instructions/Description
These columns identify ownership information of the portfolio concern
immediately prior to Financing on a fully diluted basis summarized by various
demographics and other characteristics.
Expand the columns by clicking on the “+” above the column. You may
collapse the columns by clicking on the “-“ above the column.

Ownership

You should Select Yes in any category in which that category controls the
company, where “Control” is defined for these fields as owning over 50% of
the equity in the company or possessing voting control, which is defined as
majority representation on the board of directors.
For example, if one or more females own 50.1% or more the portfolio concern
prior to the Financing, you would select Yes under “Female”.
•

Entity

If entities (versus individuals) control the portfolio company prior to financing,
select Yes in this column; the remaining demographic information would not
apply and should be left blank.
Select Yes in any category which controls the portfolio concern.

•

Sex

•

Male: Males control the portfolio concern.

•

Female: Females control the portfolio concern.

Select Yes in any category which controls the portfolio concern:

•
Ethnicity
(Hispanic or Latino)

•
Non-Hispanic or Latino: Individuals not identified as Hispanics or
Latinos, defined by OMB Statistical Policy Directive No. 15 as a person of Cuban,
Mexican, Puerto Rican, Cuban, South or Central American, or other Spanish
culture or origin, regardless of race control the portfolio concern.
•
Hispanic or Latino: Individuals identified as Hispanics or Latinos
control the portfolio concern.
•
Prefer Not to Disclose: Select if you or individuals that control the
portfolio concern would prefer not to disclose.

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Instructions for Form 1031
Small Business Investment Company Portfolio Financing Report
Instructions/Description
Select Yes in any category that Controls the portfolio concern prior to financing.
Race categories and descriptions are derived from OMB Statistical Policy
Directive No. 15.
•
American Indian or Alaska Native. Select if individuals control the
portfolio concern that identify as American Indian or Alaska Native, meaning a
person having origins in any of the original peoples of North and South America
(including Central America), and who maintains tribal affiliation or community
attachment.
•
Asian. Select if individuals control the portfolio concern that
identify as Asian, meaning a person having origins in any of the original peoples
of the Far East, Southeast Asia, or the Indian subcontinent including, for
example, Cambodia, China, India, Japan, Korea, Malaysia, Pakistan, the
Philippine Islands, Thailand, and Vietnam.

•

Race

•
Black or African American. Select if individuals control the portfolio
concern that identify as Black, meaning a person having origins in any of the
black racial groups of Africa.
•
Native Hawaiian or Other Pacific Islander. Select if individuals
control the portfolio concern that identify as Native Hawaiian or Other Pacific
Islander, meaning a person having origins in any of the original peoples of
Hawaii, Guam, Samoa, or other Pacific Islands.
• White. Select if individuals control the portfolio concern that identify as
a person having origins in any of the original peoples of Europe, the Middle East,
or North Africa.
•
Prefer Not to Disclose. Select if you or individuals that control the
portfolio concern would prefer not to disclose.
SBA notes that a person may identify with more than one race. In those
instances, they may select both. For example, Mark Smith owns 51% of ABC
Company. He considers himself Asian, Black, and White. The SBIC would then
select Yes under each of these categories. SBA would consider this portfolio
company to be owned by a person identifying as multi-racial consisting of Asian,
Black, and White.

•

Veteran

•
Persons with
Disabilities

Select Yes if individuals who qualify as veterans (as defined in 38 CFR 3.1(d))
controls the portfolio company prior to Financing.
Select Yes if individuals who qualify as persons with disabilities (as defined in 35
CFR 108) control the portfolio company prior to financing.

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Instructions for Form 1031
Small Business Investment Company Portfolio Financing Report
Instructions/Description
Founders

These columns identify information regarding the founder(s) of the portfolio concern.
Expand the columns by clicking on the “+” above the column.
You may collapse the columns by clicking on the “-“ above the column.

•

Sex

Select Yes in any category which describes the founder(s). If there is more than one founder,
select all applicable categories.
•
Male: Males control the portfolio concern.
•
Female: Females control the portfolio concern.

•

Ethnicity (Hispanic or
Latino)

Select Yes in any category which describes the founder(s). If there is more than one founder,
select all applicable categories.
•
Non-Hispanic or Latino: Individuals not identified as Hispanics or Latinos, defined by
OMB Statistical Policy Directive No. 15 as a person of Cuban, Mexican, Puerto Rican,
Cuban, South or Central American, or other Spanish culture or origin, regardless of race
control the portfolio concern.
•
Hispanic or Latino: Individuals identified as Hispanics or Latinos control the portfolio
concern.
•
Prefer Not to Disclose: Select if you or the founder(s) would prefer not to disclose.

•

Race

Select Yes in any category which describes the founder(s). If there is more than one founder,
select all applicable categories. Race categories and descriptions are derived from OMB
Statistical Policy Directive No. 15.
•

•

•
•
•
•
•
•

Veteran
Persons with
Disabilities
CEO (or equivalent)

American Indian or Alaska Native. A person having origins in any of the original
peoples of North and South America (including Central America), and who maintains
tribal affiliation or community attachment.
Asian. A person having origins in any of the original peoples of the Far East, Southeast
Asia, or the Indian subcontinent including, for example, Cambodia, China, India, Japan,
Korea, Malaysia, Pakistan, the Philippine Islands, Thailand, and Vietnam.
Black or African American. A person having origins in any of the black racial groups of
Africa.
Native Hawaiian or Other Pacific Islander. A person having origins in any of the
original peoples of Hawaii, Guam, Samoa, or other Pacific Islands.
White. A person having origins in any of the original peoples of Europe, the Middle East,
or North Africa.
Prefer Not to Disclose. Select if you or the founder(s) would prefer not to disclose.

Select Yes if founder(s) qualify as veterans (as defined in 38 CFR 3.1(d)) .
Select Yes if founder(s) qualify as persons with disabilities (as defined in 35 CFR 108).
These columns identify information regarding the CEO (or equivalent) of the portfolio
concern.
Expand the columns by clicking on the “+” above the column.
You may collapse the columns by clicking on the “-“ above the column.

•

Sex

Select Yes in any category which describes the CEO (or equivalent).
•
Male: Males control the portfolio concern.
•
Female: Females control the portfolio concern.

•

Ethnicity (Hispanic or
Latino)

Select Yes in any category which describes the CEO (or equivalent).
•
Non-Hispanic or Latino: Individuals not identified as Hispanics or Latinos, defined by
OMB Statistical Policy Directive No. 15 as a person of Cuban,

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Instructions for Form 1031
Small Business Investment Company Portfolio Financing Report
Instructions/Description

•

Race

Mexican, Puerto Rican, Cuban, South or Central American, or other Spanish
culture or origin, regardless of race control the portfolio concern.
•
Hispanic or Latino: Individuals identified as Hispanics or Latinos control
the portfolio concern.
•
Prefer Not to Disclose: Select if you or the founder(s) would prefer not
to disclose.
Select Yes in any category which describes the CEO (or equivalent). Race
categories and descriptions are derived from OMB Statistical Policy Directive No.
15.
American Indian or Alaska Native. A person having origins in any of the
original peoples of North and South Aerica (including Central America),
and who maintains tribal affiliation or community attachment.
•
Asian. A person having origins in any of the original peoples of the Far
East, Southeast Asia, or the Indian subcontinent including, for example,
Cambodia, China, India, Japan, Korea, Malaysia, Pakistan, the Philippine
Islands, Thailand, and Vietnam.
•
Black or African American. A person having origins in any of the black
racial groups of Africa.
•
Native Hawaiian or Other Pacific Islander. A person having origins in
any of the original peoples of Hawaii, Guam, Samoa, or other Pacific
Islands.
•
White. A person having origins in any of the original peoples of Europe,
the Middle East, or North Africa.
•
Prefer Not to Disclose. Select if you or the founder(s) would prefer not
to disclose.
Select Yes if the CEO (or equivalent) qualifies as a veteran (as defined in 38 CFR
3.1(d)) .
Select Yes if the CEO (or equivalent) qualifies as a person with disabilities (as
defined in 35 CFR 108).
•

•

Veteran

•

Persons
with
Disabilities

B. Part B – Pre-Financing Data
Part B of the Form 1031 includes pre-Financing data. The data is used to identify key
financial and economic data points prior to the SBIC Financing. It is critical for Licensees to
complete this section for SBA’s financial and economic analysis, including:
•

Analyzing financial changes to the portfolio concern as part of SBA’s monitoring process.

•

Assessing the economic impact of the Licensee and the SBIC program by comparing key
statistics prior to Financing and subsequent to Financing to assess changes to the
portfolio concern.

•

Assessing how both the Licensee and the SBIC program compares to the industry
financings to assess how the program supplements and serves gaps in small business
financing.

•

Assessing potential policy changes to the program.

Similar to Part A, if you have multiple Financings during the reporting period, you only need
to complete Part B once for each portfolio concern financed based on your first Financing
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Instructions for Form 1031
Small Business Investment Company Portfolio Financing Report

during the period. As such, the portfolio company name and associated employer ID number
will be automatically pulled from Part A into Part B. The following table describes each of the
fields you must complete in Part B for each portfolio company financed during the reporting
period.
Exhibit V-3: Part B – Pre-Financing Data
Field/Label
Stage of Company

Instructions/Description
Select the stage of the company at the time of financing. If you provided more than
one financing to the portfolio company during the reporting period, you should
identify the stage at the earliest of those financings. The stage of the companies
includes Seed/Pre-Seed; Early; Expansion Stage; Growth; Late; and Public.

Pre-Money Valuation
(Enterprise Value)

Identify the pre-money enterprise value of the portfolio company being financed.
The enterprise value is computed as the equity value (market capitalization) plus
debt minus cash prior to closing of the Financing.
Identify the date for the portfolio company’s fiscal year preceding the financing. For
example, if the financing date of a company is April 1, 2022, and the portfolio
company’s fiscal year end is in December, the date entered would be 12/31/2021.
Identify the gross revenues for the portfolio concern in the fiscal year immediately
preceding the Financing.
Identify the net income or after-tax profit (loss) for the portfolio concern in the
fiscal year immediately preceding the financing.
Identify the federal taxes incurred for the portfolio concern in the fiscal year
immediately preceding the Financing.
Identify the state taxes incurred for the portfolio concern in the fiscal year
immediately preceding the Financing.
Identify the net worth of the portfolio company as of the end of the prior fiscal year
end date. Net worth is defined as the total of all assets minus the total of all
liabilities.
Identify the number of full-time employees at the time of Financing.

Prior Fiscal Year End Date

Gross Revenue for Prior Fiscal
Year
After-Tax Profit/(Loss) For
Prior Fiscal Year
Federal Taxes for Prior Fiscal
Year
State Taxes for Prior Fiscal
Year
Net Worth at End of Prior
Fiscal Year
Number of Employees at
Financing

C. Part C – Financing Information
You must provide information for each Financing (except guarantees) you provided to all
Portfolio Concerns during the reporting period, as reported in Part A. SBA uses this information
to assess details regarding SBIC Financings, including timing, amounts, structure, terms, total
financing dollars received by the portfolio concern because of the deal, SBIC participation, how
the funds will be used, and information needed to assess regulatory compliance.
If you provided multiple Financings to a portfolio concern during the reporting period, you
must provide information regarding each Financing. For the purposes of reporting on Form
1031, the Financing would be evidenced based on a contract signed by both you and the
portfolio concern and may include loans, debt, and equity securities, as discussed in 13 CFR
Part 107.
For example: ABC SBIC provides a loan to Acme Co. for $1 million on January 1, 2021, to
fund Acme Co. as it closes on a round of financing. Acme Co. closes on a $20 million capital raise
on March 15, 2021, in which ABC SBIC agrees to convert its loan into equity and also purchases
an additional $5 million in equity financings. ABC SBIC would report the loan to Acme Co for $1
million as one Financing with a closing date of January 1, 2021, and another Financing for $5
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Instructions for Form 1031
Small Business Investment Company Portfolio Financing Report

million on March 15, 2021. The Form 1031 for Part A and B would contain a single line of
information on Acme Co based on the January 1, 2021, financing date, but would contain two
Financing records in Part C.
The following information is required in Part C for each Financing as follows:

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Instructions for Form 1031
Small Business Investment Company Portfolio Financing Report
Exhibit V-4: Part C – Financing Information
Field/Label
Portfolio Company

Instructions/Description
Select the name of the portfolio company from the list you created in Part A.

Name
Employer ID

This is a calculated field. It looks up the employer ID number based on the portfolio
company name you selected above.

Date of Financing

Enter the date that the Small Business and the Licensee sign a formal contract or agreement
of financing, or the effective date of such a contract or agreement if the effective date is
different from the date the contract was signed.
Enter the date that the Licensee makes or schedules the financing disbursement. The date of
disbursement may differ from the date of financing.
· For financing agreements with multiple, non-contingent disbursements:

• Enter the date for the total planned financing amount and note the
additional disbursements in Financing Comments column.
· For financing agreements with contingent disbursements:

Date of Disbursement

• If a disbursement is contingent upon the small business meeting specific
conditions (such as benchmarks or performance hurdles), submit a separate Form 1031 for
that disbursement when it is made.
•

Do not include these contingent disbursements in the initial Form 1031

•

Note: Routine debt covenants do not trigger separate Form 1031 filings.

filing.

Example for financings with multiple, non-contingent disbursements: ABC SBIC signs an
agreement on January 1, 2021, to provide Acme Co. $1 million in the form of a loan, which
would be disbursed in three different tranches on January 2, 2021, February 2, 2021, and
March 2, 2021. ABC SBIC would create one record for the $1 million loan, with January 1,
2021, identified as the Date of Financing, and January 2, 2021, as the disbursement date.
Although loans would be disbursed over 3 tranches, the SBIC only needs to enter the date of
the first disbursement.
1st Financing of the
Company by
Licensee?
Licensee Led
Investment
Primary Investment
Type & Secondary
Investment Type

Financing Instruments
and Applicable
Amounts

Select “Yes” if this is the first Financing of the portfolio concern by the Licensee. Otherwise,
select “No”.

Select “Yes” if the Licensee led or co-led the portfolio company deal/round of financing.
Primary Investment Type is based on dollar amount. So If the investment is $10.0M
subordinated debt and $1.0M common equity, the primary investment type is the
subordinated debt. Secondary Investment type would be the common equity. Choose
primary investment type and secondary investment type(if applicable) from the drop down
list.
Enter the amounts provided as loans, debt, and equity provided by the Licensee as its part of
the Financing. The total Licensee Financing will be automatically calculated based on your
entries.
For example, if the Licensee provides as part of the same Financing $5 million in Debt and
$2.5 million in equity, this would be identified as a single Financing with $5 million identified
in the column labelled “Debt” and $2.5 million in the column labelled “Equity”.

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Instructions for Form 1031
Small Business Investment Company Portfolio Financing Report
Total Size of Deal or
Financing Round

Interest Rate

Enter the total dollars provided by the Licensee and ALL other capital providers in a given deal,
including dollars provided in the form of revolvers, senior debt, subordinated debt, preferred
equity, common equity, and any other financing instrument.
If your Financing includes a Loan, enter the interest rate as a percentage under “Loan Rate”.
If your Financing includes a Debt Security, enter the interest rate as a percentage under
“Debt Security”. If your rate is by contract fixed to another rate, enter the rate(s) at the time
of Financing and note this in the Financing Comments under column AE. The
blended rate will be calculated based on the amounts and rates you entered.

Resulting Ownership

Enter the ownership percentage (on a fully diluted basis) of the SBIC following this Financing,
including holdings of all prior investments.
Enter the percentage of the Total Licensee Financing amount (Column J) that will be used
towards the activities identified in columns P through Y. Column Z will identify what
percentage has not been allocated. This figure should be zero. If the figure is other than zero,
please explain in the Financing Comments in column AE.
The activities identified include the following:

Purpose of Financing

Field/Label

Qualifications to
Issue Special Use
Discount Debentures

Passive Business
Information

•

Working Capital or Inventory Purchase

•

Plant Modernization or Leasehold Improvement

•

Acquisition of All or Part of an Existing Business

•

ESOP Conversion

•

Consolidation of Obligations or Non-SBIC Debt Refunding

•

New Building or Plant Construction

•

Acquisition of Machinery and Equipment

•

Land Acquisition or Dwelling Construction

Instructions/Description
•
Marketing Activities
•
Research and Development
To use SBA’s Discount Debentures, the proceeds must be used for either Low and Moderate
Income (LMI) investments or Energy Saving Qualified Investments (ESQI). If you are using one
of these Debentures, you should select “Yes” under the appropriate qualifier. Otherwise,
select “No”. SBA uses this information to identify which investments
need to be reviewed to assess whether they meet the appropriate qualifications. You should
be sure to maintain all necessary documentation as required in 13 CFR part 107.
If you used a passive business to finance the portfolio company, under Column AC, you would
select “Yes” to indicate to SBA that a passive business is used.
If you identify under Column AC that your portfolio concern was financed using a passive
business, you must provide a separate file that provides the information detailed in Part D,
including the qualifying exception, the passive business entities, and a description of the
Financing. Column AD will identify how you should name your PDF file so that SBA can relate
it to the appropriate Financing, as “PB_” concatenated with your license number, the
employer ID number of the portfolio concern, the date of financing in “yyyymmdd” format
and “.PDF”.

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Instructions for Form 1031
Small Business Investment Company Portfolio Financing Report

D. Part D – Passive Business Financing Information.
You must provide Passive Business Financing information for each Financing that you
identified as using a passive business under Part C. Each file must include the following
information:
Qualifying Exception: Identify the qualifying exception under which the passive
business Financing was performed (either the §107.720(b)(2) exception for pass-through of
proceeds to subsidiary or the
§107.720(b)(3) exception for certain Partnership Licensees). If the Financing was performed
pursuant to
§107.720(b)(3), identify the qualifying reason.
•

Passive Business Entities: For each passive business involved in the Financing, provide
the name and employer ID.
•

Financing Structure Description: Describe the Financing structure, including the flow of
the money from the SBIC through each passive entity to the non-passive Small Business
(including amounts and types of securities), and the ownership between the SBIC through each
entity to the non- passive Small Business. If the Financing was performed pursuant to
§107.720(b)(2), provide sufficient ownership information to show that the non-passive Small
Business qualifies as a “subsidiary” of the passive entity that received the financing. You may
use diagrams to help explain your structure, if beneficial.
•

E. Part E – General Information
This part identifies general information regarding the Form 1031 and instructions. No
inputs are required.
F. Certification
This worksheet pulls information from Part C such that you can certify to its accuracy. You
will need to add the name, title, signature, and signature date for the person certifying on
behalf of the Licensee.

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