The Small Business Investment Company Program
The SBIC program was created by Congress in 1958 to give small businesses access to the long-term capital required for growth. SBICs provide equity capital, long-term loans, debt-equity investments and management assistance to small businesses, particularly during their growth stages. The SBA’s role consists of licensing the SBICs and administering the program. Additionally, the SBA provides for three types of long-term leverage funding vehicles to SBICs on favorable terms. In return, the SBICs issue to the SBA, Debentures, Participating Securities, or new Zero-Coupon LMI Instruments. SBICs are privately owned and managed venture capital companies, investing with the prospect of sharing in the success of the funded small businesses as they grow and prosper.
small business investor alliance
Read more about our SBIC Industry expertise on the MCB blog.