What is the SEC N-54C form?
The SEC Form N-54C is a document that must be filed with the Securities and Exchange Commission (SEC) by a company that wishes to reverse its voluntary election to be regulated as a business development company.
The full title of the form is indicated as Form N-54C Notice of Withdrawal of Election subject to Sections 55 through 65 of the Investment Company Act of 1940 Filed pursuant to Section 54 (C) of the Investment Company Act 1940.
- Form SEC N-54C is used to reverse a company’s choice to be regulated as a business development company.
- Business development companies manage various types of financing for small and medium-sized businesses.
- The form indicates that the company has changed its business model, is being taken over by another company, or is going out of business.
Who can file the SEC N-54C form?
The Investment Company Act of 1940 provides a number of regulatory options for investment companies. Section 54 of the 1940 Act allows a company to register as a business development company if it complies with the specified provisions outlined in Sections 55 through 65.
Business Development Companies (BDCs) were created in 1980 to help support the creation of small and medium-sized businesses in the U.S. BDCs can organize stocks, debt and alternative financing products for companies with a market value of 250 millions of dollars or less. To earn BDC status, 70% of a company’s assets must be invested in qualifying US companies.
A business that chooses to register as a BDC must complete Form N-54A Notice 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 may also be required 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.
If a company has chosen to be regulated as a BDC and later decides to withdraw this election, it must file SEC Form N-54C.
Section 54 (c) of the 1940 Act describes how a company can withdraw its election to be regulated as a business development company. The BDC status of companies can also be revoked.
How to file SEC N-54C form
To withdraw its BDC status, a business must submit the original N-54C form and three copies of it. There is no fee for submitting Form N-54C.
Form N-54C it is available on the SEC’s website. The form provides an outline of basic information and signatures.
The company must provide a basis for its request to withdraw from its former status. The form supports any of the following six reasons:
- No public offering of securities was ever made.
- The assets of the company have been significantly distributed and the business is in the process of dissolving.
- The company has sold its assets or merged with another company.
- The business has changed significantly.
- The company has filed Form N-8A.
- Other. You must provide an explanation.
The withdrawal of the election is effective as soon as it is received by the SEC. Once a business withdrawal is effective, it may be subject to Sections One through 53 of the 1940 Act,
Download form SEC N-54C here
Form N-54C is available for download on the SEC site.