SEC Form N-54C

What Is SEC Form N-54C?

SEC Form N-54C is a document that must be filed with the Securities and Exchange Commission (SEC) by a company that wants to reverse its voluntary election to be regulated as a business development company.

The full title of the form is noted as Form N-54C Notification of Withdrawal of Election to be Subject to Sections 55 through 65 of the Investment Company Act of 1940 Filed Pursuant to Section 54(C) of the Investment Company Act of 1940.

• SEC Form N-54C is utilized to reverse a company's election to be regulated as a business development company.
• Business development companies arrange to finance different types for little and medium-sized businesses.
• The form indicates that the company has changed its business model, is being absorbed by another business, or is ceasing doing business.

Understanding SEC Form N-54C

The Investment Company Act of 1940 gives a number of regulatory options for investment companies. Section 54 of the Act of 1940 permits a company to register as a business development company in the event that it meets the predetermined provisions outlined in Sections 55 through 65.

Business development companies (BDCs) were made in 1980 to assist with supporting the creation of little and medium-sized businesses in the U.S. BDCs might arrange equity, debt, and alternative financing products for businesses with a market value of $250 million or less. To obtain BDC status, 70% of a company's assets must be invested in U.S. firms that qualify.

A company that decides to register as a BDC must complete Form N-54A Notification of Election to be Subject to Sections 55 through 65 of the Investment Company Act of 1940 Filed Pursuant to Section 54(A) of the Act. They likewise may need to file Form N-6F Notice of Intent to Elect to be Subject to Sections 55 through 65 of the Investment Company Act of 1940.

In the event that a company has chosen to be regulated as a BDC and later decides to pull out this election, it must file SEC Form N-54C.

Section 54(c) of the Act of 1940 depicts how a company might pull out its election to be regulated as a business development company. Companies can likewise have their BDC status revoked.

Instructions to File SEC Form N-54C

In order to pull out its BDC status, a company must present the original N-54C Form and three duplicates of it. There is no fee for submitting Form N-54C.

Form N-54C is accessible on the SEC website. The form gives an outline to fundamental information and signatures.

The company must give a basis to its request to pull out from its previous status. The form takes into consideration any of six reasons:

1. No public offering of securities was made.
2. The company's assets have been significantly distributed and the business is presently dissolving.
3. The business has sold its assets or merged with another company.
4. The business has changed significantly.
5. The company has filed Form N-8A.
6. Other. Must give an explanation.

The withdrawal of the election is effective when it is received by the SEC. Once a company's withdrawal is effective it could be subject to Sections One through 53 of the Act of 1940,

Download SEC Form N-54C Here

Form N-54C is accessible for download on the SEC site.