What is a Central Registration Agent and Its Legal Significance?

Definition & Meaning

A Central Registration Agent (CRA) is an agent designated by the Small Business Administration (SBA) to manage specific financial activities related to the New Markets Venture Capital (NMVC) Program. The CRA is responsible for issuing Tax Credit Certificates (TCs) and performing functions outlined in the regulations, including those related to Debentures that are funded outside of the pooling process. Essentially, the CRA plays a crucial role in facilitating investment and financial support for small businesses through these programs.

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Real-world examples

Here are a couple of examples of abatement:

Here are a couple of examples of how a Central Registration Agent might operate:

  • A small business owner applies for funding through the NMVC Program. The CRA processes their application and issues a Tax Credit Certificate to facilitate their investment.
  • A venture capital firm seeks to invest in a new market. The CRA manages the Debenture process, ensuring compliance with federal regulations (hypothetical example).

Comparison with related terms

Term Definition Key Differences
Central Registration Agent An agent appointed by the SBA to manage financial activities related to the NMVC Program. Specifically involved in tax credits and Debentures.
Tax Credit Certificate A document issued to investors that provides a tax benefit for investing in qualified businesses. Focuses on the benefits provided to investors rather than the management of the investment process.
Debenture A type of debt instrument that is not secured by physical assets or collateral. Refers to the financial instruments used for funding rather than the agents managing them.

What to do if this term applies to you

If you believe the role of a Central Registration Agent applies to your business, consider the following steps:

  • Research the NMVC Program and understand its requirements.
  • Consult with a financial advisor or legal professional to assess your eligibility for funding.
  • Explore US Legal Forms for templates that can assist you in applying for tax credits or Debentures.
  • If your situation is complex, seeking professional legal assistance is recommended.

Quick facts

Attribute Details
Jurisdiction Federal, under the SBA regulations.
Typical Fees Varies based on the specific funding program.
Potential Penalties Non-compliance with SBA regulations may result in loss of funding or legal action.

Key takeaways

Frequently asked questions

A CRA manages financial activities related to the NMVC Program and issues Tax Credit Certificates.