First In Ventures Fund 3 SBIC Seeks Exemption for Conflict of Interest Financing

FR: Small Business Administration

Published March 27th, 2026

Detected March 27th, 2026

Summary

The Small Business Administration (SBA) has published a notice regarding First In Ventures Fund 3 SBIC Critical Technologies LP's request for an exemption under Section 312 of the Small Business Investment Act. The exemption is sought due to a potential conflict of interest involving financing SCATR Corporation, where affiliated entities hold significant ownership.

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What changed

The Small Business Administration (SBA) has issued a notice concerning First In Ventures Fund 3 SBIC Critical Technologies LP's application for an exemption under Section 312 of the Small Business Investment Act and 13 CFR 107.730. This exemption is required because affiliated entities of the applicant, First In Ventures Fund II LP and First in SCATR 2024 LLC, own more than ten percent of SCATR Corporation, the proposed financing recipient. This ownership structure constitutes a conflict of interest under the Act's regulations.

Interested parties are invited to submit written comments to the SBA within fifteen days of the publication date. This notice signifies a specific instance where a Small Business Investment Company (SBIC) is seeking regulatory approval to proceed with a transaction that would otherwise be prohibited due to potential conflicts of interest arising from common control and ownership. Compliance officers should be aware of the comment deadline and the specific regulatory provisions cited for potential future reference.

What to do next

Review the notice for potential impact on similar SBIC financing structures.
Submit comments to the SBA Associate Administrator for Investment within 15 days of publication if deemed necessary.

Source document (simplified)

Notice

First In Ventures Fund 3 SBIC Critical Technologies LP; Notice Seeking Exemption Under Section 312 of the Small Business Investment Act, Conflicts of Interest

A Notice by the Small Business Administration on 03/27/2026

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Public Inspection Published Document: 2026-05996 (91 FR 14899) Document Headings ###### Small Business Administration

[License No. 40002379] Notice is hereby given that First In Ventures Fund 3 SBIC Critical Technologies LP, 11450 SE Dixie Hwy, Suite 201, Hobe Sound, FL 33455, Federal Licensee under the Small Business Investment Act of 1958, as amended (“the Act”), in connection with financings of a small business, has sought an exemption under Section 312 ( printed page 14900) of the Act and 13 CFR 107.730, Financings which Constitute Conflicts of Interest of the Code of Federal Regulations. First In Ventures Fund 3 SBIC Critical Technologies LP proposes to provide financing to SCATR Corporation, 26391 Curtiss Wright Parkway Suite 108, Cleveland, OH 44143 to support the company's growth.

The financing is brought within the purview of 13 CFR 107.730(a) of the regulations because First In Ventures Fund II LP and First in SCATR 2024 LLC, Associates of First In Ventures Fund 3 SBIC Critical Technologies LP, own more than ten percent of SCATR Corporation. First in Ventures Fund II LP and First in SCATR 2024 LLC are Associates by virtue of Common Control, as those terms are defined in 13 CFR 107.50. Therefore, this transaction is considered a financing which constitutes a conflict of interest.

Notice is hereby given that any interested person may submit written comments on the transaction, within fifteen days of the date of this publication, to the Associate Administrator for Investment, U.S. Small Business Administration, 409 Third Street SW, Washington, DC 20416.

Paul Salgado,

Director, Investment Portfolio Management, Office of Investment and Innovation.

[FR Doc. 2026-05996 Filed 3-26-26; 8:45 am]

BILLING CODE P

Published Document: 2026-05996 (91 FR 14899)