Equity Investment Sources for Small Business

Congress created the Small Business Investment Company Program in 1958 to fill the gap between the availability of venture capital and the needs of start-up and expanding small businesses. Licensed and regulated by the U.S. Small Business Administration, SBICs are privately owned and managed, profit-motivated investment firms.

SBICs provide equity capital, long-term loans, debt-equity investments and management assistance to qualifying small businesses. They make these venture-capital investments with their own funds plus funds obtained by borrowing at favorable rates with an SBA guaranty.