What is the SBIC Program?
The Small Business Investment Company (SBIC) program, administered by the U.S. Small Business Administration (SBA), was created in 1958 to fill the gap between the availability of venture capital and the needs of small businesses in start-up and growth situations. 2. What is the current size of the program? At the end of FY 2005, SBA had over $6.3 billion invested in 418 funds, plus another $5.1 billion in outstanding commitments. Together with private capital topping $12 billion, the program totals over $23 billion in capital resources dedicated to Americas entrepreneurs. 3. How does the SBA fund the SBIC Program? No tax dollars are appropriated to fund SBIC debentures. Rather, SBIC debentures are pooled periodically and sold in the public markets to private investors in the form of SBA Guaranteed Certificates. 4. How does the SBA participate in an SBIC? The government itself does not make direct investments or target specific industries. Essentially, the SBIC program is a fund of fun
