Seeking $40M Payback, SBA Asks To Take Over Venture Firm

Law360, New York (April 20, 2012, 2:26 PM EDT) -- The U.S. Small Business Administration asked a California federal judge Thursday to put it in charge of Novus Ventures II LP, a technology venture capital firm that has allegedly owed the agency nearly $40 million for years.

Motioning for injunctive relief and appointment as receiver, the SBA said that Novus long ago blew past an agreed-upon capital impairment limit, causing the SBA to switch its operating status to liquidation status in 2008, and that Novus has failed to meet payback milestones over the last three years....
To view the full article, register now.