1: Small Business Investment Companies (SBIC)

Provide long-term loans and equity capital to small businesses.

Other Information:

A multi-billion dollar program founded in 1958, 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, but provides funding to qualified investment management firms with expertise in certain sectors or industries. The SBIC program provides long-term loans and equity capital to small businesses, especially those with potential for substantial job growth and economic impact. In an effort to expand the reach ofthe program and make capital more accessible for more small businesses, the Agency has introduced two initiatives, the Impact Investment Initiative and the Early Stage Innovation Initiative. To connect with startups in clean energy and other sectors, the SBA launched the Entrepreneurial Mentor Corps program in partnership with the Department of Energy and Department of Labor.

Stakeholder(s):

• Department of Energy
  •  (Performer)


• Department of Labor
  •  (Performer)


• Private Investment Funds
  • Small Business Investment (Performer, Beneficiary): make equity and debt investments in qualifying small businesses.

Objective(s):

1: Businesses & Jobs

2: Small Business Needs

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