Skip to content
SBA – SBIC program – Invitation to Lenders, Venture Fund Managers, and University Tech Transfer Offices – 10/6 – Online
Attention Lending Partners & Institutional Investors,
The SBA Great Plains and Rocky Mountains Regions are hosting an information session for investors, fund managers, and financial institutions to learn more about the SBA – Small Business Investment Company (SBIC) Program, licenses, and benefits.
SBIC Information Session for Investors
Microsoft Teams Webinar
Tuesday, October 6 at 2 PM CDT
SBA provides SBIC licenses and capital to professionally managed equity and debt investment funds. The capital is in the form of government-guaranteed loans to the fund to match privately raised capital. The SBA-guaranteed loan, paired with private capital, increases access to capital for qualifying U.S. small businesses and startups while potentially improving risk-adjusted returns for private investors.
Additional benefits to investment funds and limited partners include:
- Rapid fund deployment: The potential to capitalize on as much as two-thirds of a fund with SBA leverage means managers spend less time fundraising and more time investing.
- Access to long-term capital: SBA provides long-term funding, which is often patient capital that aligns with the long-term growth plans of small businesses and startups. This type of capital is essential for businesses that need time to grow and establish themselves.
- Flexible terms and investment opportunities: The duration of SBA’s financing instruments can be matched with short- or long-term investments. SBICs have the flexibility to invest in a wide range of industries and sectors, promoting diversity in their investment portfolio. This flexibility allows managers to adapt to market trends and capitalize on emerging opportunities.
- Exempt from SEC registration: SBICs are exempt from SEC registration, yet LPs benefit from the SBA’s careful monitoring of each fund’s performance and regulatory compliance.
- Exempt from Volcker Rule: SBICs are exempt from the bank investment limitations set forth in the Volcker Rule as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
- Increased financial scale: SBA leverage allows funds to scale up their strategies and extend their financings to more businesses.
- Tax advantages for LPs: An SBIC’s LPs may be eligible for tax benefits as investments in SBICs are presumed to be a “qualified investment” for Community Reinvestment Act credit.
This information session will offer information on how to obtain an SBIC license and the benefits of adding SBA-backed capital and small businesses to investment portfolios. Please share this opportunity with fund managers, institution or foundation leadership, investors, or others that may benefit from learning about this program. This is not intended for small businesses or entrepreneurs seeking SBIC investment.
SBIC Information Session for Investors
Microsoft Teams Webinar
Tuesday, October 6 at 2 PM CDT
Thank you –
Here is the LinkedIn post as well: https://www.linkedin.com/posts/sbasouthdakota_sbic-information-session-for-investors-activity-7507788071086649345-eZv-?utm_source=share&utm_medium=member_desktop&rcm=ACoAAADuLi8BfWXm4edafHhRRPqqSlOUJLWtvjU
Brent E. Donnelly
District Director, Montana District Office
Office of Field Operations
U.S. Small Business Administration
(406) 441-1083
Cell (406) 439-7613