Capital requirements

(a) Amount (1) In general The private capital of each licensee shall be not less than $10,000,000. (2) Adequacy In addition to the requirement under paragraph (1), the Secretary shall— (A) determine whether the private capital of each licensee is adequate to assure a reasonable prospect that the licensee will be operated soundly and profitably, and managed actively and prudently in accordance with the articles of the licensee; and (B) determine whether the licensee will be able, both prior to licensing and prior to approving any request for financing, to make periodic payments on any debt of the licensee that is interest bearing and shall take into consideration the income that the licensee anticipates on the contemplated investments of the licensee, the experience of the owners and managers of the licensee, the history of the licensee as an entity, if any, and the financial resources of the licensee. (b) Diversification of ownership The Secretary shall ensure that the management of each licensee (including Protégé OICs) is sufficiently diversified from and unaffiliated with the ownership of the licensee in a manner that ensures independence and objectivity in the financial management and oversight of the investments and operations of the licensee.