Small Business Investment Companies

 

To establish privately owned and managed small business investment companies, which are licensed and regulated by the U.S. Small Business Administration, and to issue debt to licensed SBICs that may provide equity capital and long term loan funds to small businesses and provide advisory services to small businesses.

Active 59.011 Small Business Administration F - Guaranteed/Insured Loans Fiscal Year 2019 Launched in 1958 the SBIC Program has: Deployed more than $67 billion of capital; Made more than 166,000 investments in small businesses; Licensed more than 2,100 funds. Small Business Investment Act of 1958, Title III (15 U.S.C. 681 et seq.), Public Law 85-699, as amended Any chartered small business investment company having private capital of not less than $5 million, having qualified management, giving evidence of sound operation, and establishing the need for SBIC financing in the geographic area in which the applicant proposes to operate. For more information, please go to: https://www.sba.gov/partners/sbics/apply-be-sbic#section-header-4. Individual businesses (single proprietorship, partnership or corporation) which satisfy the established criteria of a small business. For more information, please go to: https://www.sba.gov/partners/sbics/apply-be-sbic#section-header-6. A small business investment company must be chartered as a corporation, limited partnership (with individuals, corporation, partnership, or limited liability company as general partner), or limited liability company. Determination is made as to need in area, general business reputation and character of proposed owners and management and probability of successful operations. All loans to, or investments in, small concerns shall be of such sound value as reasonable to assure repayment. For more information, please go to: https://www.sba.gov/partners/sbics/apply-be-sbic#section-header-4. Preapplication coordination is required. SBIC applicants are strongly encouraged to participate in a pre-screening process. For more information, please go to: https://www.sba.gov/partners/sbics/apply-be-sbic#section-header-8. 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. Request information and appropriate forms from SBA's Office of Investment. Complete application requirements and submit with required application fee to SBA's Office of Investment. For more information, please go to: https://www.sba.gov/partners/sbics/apply-be-sbic. Applicant is notified by issuance of a license from the Office of Investment and Innovation of the Small Business Administration. Contact the headquarters or regional location, as appropriate for application deadlines Applying for an SBIC license is generally a three phase process and may take up to two years. In the second phase of the process, applicants are given 18 months to raise the private capital needed to be viable and submit required information for licensing. For more information on the licensing process, please go to: https://www.sba.gov/partners/sbics/apply-be-sbic. Proponents may reapply at any time. Not applicable. Investment funds licensed as SBICs must demonstrate ability to generate enough revenue to pay their SBIC debt obligations on a timely basis and typically have four basic characteristics: o Experienced management team: Team members have complementary skills and a history of working with each other. o Proven investment strategy: Track records contain enough successful, income-generating investments to prove an ability to service SBA-guaranteed debt. o Track record of success: At least two team members' 10-year track records clearly show success with investments analogous to the ones proposed for the SBIC. o Appealing fund structure: The SBIC's structure aligns the incentives of the SBIC's managers and investors. The investment companies provide management and financial assistance on a continuing basis to eligible small business concerns. Financial assistance is provided by making long-term loans to these small concerns, and/or by the purchase of debt or equity type securities issued by these firms. Emphasis is on providing assistance to the pioneering, innovating-type concerns developing new products, processes, and markets. Specialized investment companies organized/licensed under former Section 301(d) of the authorizing statute (SSBICs) must restrict eligibility of small concerns financed by such investment companies to those owned and operated by individuals whose participation in the free enterprise system has been hampered by social or economic disadvantages. Debentures and participating securities are issued by the SBIC and guaranteed by SBA for a term not to exceed ten years. All investment companies generally may not self-deal, finance "big business," or invest over 30 percent of private capital in any single small concern. Performance Reports: Information available at https://www.sba.gov/partners/sbics/operate-sbic#section-header-0. Annual audit by a certified public accountant and periodic on-site examinations by SBA personnel. For more information, please go to https://www.sba.gov/partners/sbics/operate-sbic. Current financial records, minutes of meetings of stockholders, general partners, directors, executive committees, and time spent and charges made for management consulting services performed must be maintained until such time as an SBIC license is surrendered. Statutory formula is not applicable to this assistance listing.

Matching is mandatory. Additional information available at SBA's website at www.sba.gov/sbic.

MOE requirements are not applicable to this assistance listing. Additional information available at SBA's website at https://www.sba.gov/partners/sbics/apply-be-sbic#section-header-8. https://www.sba.gov/partners/sbics/operate-sbic. See Appendix IV of the Catalog of Federal Domestic Assistance under Small Business Administration. A. Joseph Shepard
409 3rd Street, SW
6th Floor
Washington, DC, DC 20416 US
OII.FrontOffice@sba.gov
Phone: 202-619-0384 http://www.sba.gov/sbic 73-1154-0-1-376 (Guaranteed/Insured Loans) FY 18$2,521,870,000.00; FY 19 est $1,614,120,000.00; FY 20 est $4,000,000,000.00; FY 17$196,000,000.00; FY 16$2,514,000,000.00; - Information on the SBIC Program Overview is available at https://www.sba.gov/sites/default/files/2019-05/SBIC%20Quarterly%20Report%20as%20of%20March%2031%202019.pdf Information is updated regularly here: https://www.sba.gov/document/report--small-business-investment-company-sbic-program-overview]. Additional information available at SBA's website at www.sba.gov/sbic. 13 CFR, Part 107. Fiscal Year 2019 For a current directory of licensed SBICs, please go to https://www.sba.gov/sbics.