Small Business Investment Companies (SBIC)


  • Robert E. Paoni, LRS,
  • S. Small Business Administration (SBA)
  • 3330 Ginger Creek Drive, Suite B East
  • Springfield, IL 62711
  • Phone: (217) 793-5020
  • Fax: (217) 793-5025
  • TDD: (217) 492-4418
  • Email:
  • Website: sba.gov

Purpose of the Program

The mission of the Small Business Investment Company (SBIC) program is to improve and stimulate the national economy and small businesses by stimulating and supplementing the flow of private equity capital and long term loan funds for the sound financing, growth, expansion and modernization of small business operations while insuring the maximum participation of private financing sources.

Who is Eligible

The SBIC Program is one of many financial assistance programs available through the U.S. Small Business Administration.  The structure of the program is unique in that SBICs are privately owned and managed investment funds, licensed and regulated by SBA, that use their own capital plus funds borrowed with an SBA guarantee to make equity and debt investments in qualifying small businesses.  The U.S. Small Business Administration does not invest directly into small business through the SBIC Program.

Application Process

There are over 400 licensed SBICs in operation today.  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 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.  There are extensive educational resources available to entrepreneurs that want to evaluate different risk capital options and what type may best fit their financing needs.  Information is available at: www.sba.gov/inv.  After you have taken time to familiarize yourself with the SBIC Program, venture capital, mezzanine lending and private equity, and you believe your business would be a good fit for SBIC financing, you should first research and identify existing SBICs that may be interested in financing your company.  In choosing an SBIC, consider the type of investments it makes, stage of investments, industry focus and geographic concentration.  An SBIC directory may be found at www.sba.gov/inv.  Once you have identified the SBICs that are best suited to provide the type of financing required, you should take steps to present your business plan to them.  Note that the average SBIC receives hundreds of business plans per year.

Availability of Funds

Open

How Funds are to be used

Open

Types of Assistance

Loans Private equity capital

Year Program was established

1958