Need Investment Capital?

If your business is needing more than $100,000 to expand, you may consider finding an investor through the Small Business Investment Company (SBIC) licensed by the Small Business Administration.

What is a Small Business Investment Company (SBIC)?

• A privately owned company that’s licensed and regulated by the Small Business Administration (SBA)
• It invests in small businesses in the form of debt and/or equity
• The SBA provides funding to qualified SBICs with expertise in certain sectors and industries
• The SBICs then use their own private funds along with SBA-guaranteed funding to invest in small businesses

How Does it Work?

• If the SBIC invests in a small business through debt, it must be paid back with any interest
• A small business may also share ownership with a SBIC in exchange for providing funding
• Sometimes the SBIC invests through both debt and equity
• A typical SBIC investment is made over a 3-year period

Eligibility

SBICs typically target mature, profitable businesses with sufficient cashflow to pay interest.

If you are a small business that is looking to expand, but need the capital to do so, here are the steps to take:

1. Research SBICs in your industry that is investing. The SBA keeps a list of qualified SBICs here.
2. Make sure you have business plan available so that you can showcase how your business would be profitable for the SBIC.
3. Contact an SBIC

If you need help with your business plan, you can always reach out to BizCentral USA to assist you.