The Small Business Administration has reported milestones as a result of the implementation of regulatory and policy reforms to the Small Business Investment Company program, or SBIC. Through the program, SBA is working to accelerate the flow of private investment in startups and small businesses in underserved communities and technology areas that are key to U.S. national security and economic development.
In July 2023, program reforms were implemented through the SBIC Investment Diversification Growth Rule, which updated the program’s structural aspects and launched the SBIC Accrual Debenture, SBA said Wednesday.
The SBIC Accrual Debenture is SBA’s new government-guaranteed loan that seeks to “match the cashflow patterns of equity-oriented investment strategies” and enable the agency to license and offer loans to private funds that invest in startups and small companies.
One of the milestones achieved is the approval received by Stifel North Atlantic to secure an SBA-DOD SBIC Critical Technologies license and receive a commitment of funds from SBA. Stifel intends to improve the resilience of the domestic supply chain by fostering the adoption of additive manufacturing capabilities in lower-middle market businesses.
The second milestone is the approval of the first SBA Accrual SBIC license in December. Salt Lake City-based technology venture capital firm Pelion Ventures will manage the license.
In fiscal year 2023, SBA released $4.05 billion in commitments to SBICs, which sustained or created approximately 130,281 jobs.
