Small Business Investment Company (SBIC) by Adam Hayes

TL;DR - SBICs are an avenue for small businesses to secure capital.

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Tags - SBIC, debenture, venture capital, SBA

Questions answered:

  • What is an SBIC?
  • How do SBICs finance businesses?
  • What is a debenture?

Summary:

  • SBICs borrow from the government; Small Business Administration matches investments (2 to 1 rate)
  • The SBA provides SBICs with a set amount of leverage for a set amount of time.
  • SBICs usually focuses on investments in the 100K-250k range.

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