BACKGROUND AND CURRENT STATE OF THE SBIC PROGRAM -

The Small Business Investment Company (SBIC) Program enables private equity fund managers to access government leverage at rates typically lower than traditional lending sources. The SBIC Program aims to grow small businesses by facilitating the access to growth capital for middle-market companies.

Congress enacted the Small Business Investment Act of 1958 (the SBIC Act), as amended from time to time, and the rules and regulations promulgated thereunder, to create the SBIC Program.1 The U.S. Small Business Administration (SBA) conducts the SBIC Program through its Investment Division, located in Washington, D.C.