The Small Business Investment Company (SBIC) Program bridges the gap between entrepreneurs’ need for capital and traditional financing sources. SBICs, which are licensed by SBA, are professional, privately owned and managed venture funds. The SBIC Program provides comparatively inexpensive capital to SBICs to provide equity capital, long-term loans, and debt-security investments.

In addition to investing capital, SBICs provide hands-on involvement in their portfolio companies, including:

• Board participation
• Corporate governance
• Strategic planning and marketing
• Recruitment
• Financial support
• Capital raising
• Company exit support

SBICs pursue investments in a broad range of industries, geographies and stage of investment. Some SBICs invest in a particular field or industry in which their management has expertise, while others invest more generally. Most SBICs concentrate on a particular stage of investment (i.e., start-up, expansion or turnaround) and identify a geographic area in which to focus. The form of SBA funding that a particular SBIC uses can vary and will have an impact on the type of investments they can make.

SBICs may not invest in the following: other SBICs; finance and investment companies or finance-type leasing companies; unimproved real estate; companies with less than 51 percent of their assets and employees in the United States; passive or casual businesses (those not engaged in a regular and continuous business operation); or companies that will use the proceeds to acquire farmland. SBICs may not provide funds for a small concern whose primary business activity is deemed contrary to the public interest.

How to Apply
You will find information about the application process at For SBIC Applicants.

For More Information
For general information, go to SBIC Program.