Investment Capital

https://www.sba.gov/funding-programs/investment-capital

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Investment capital

Find an investor for your business through a Small Business Investment Company (SBIC) licensed by the Small Business Administration (SBA).

SBICs invest in small businesses

An SBIC is a privately owned company that’s licensed and regulated by the SBA. SBICs invest in small businesses in the form of debt and equity. The SBA doesn’t invest directly into small businesses, but it does provide funding to qualified SBICs with expertise in certain sectors or industries. Those SBICs then use their private funds, along with SBA-guaranteed funding, to invest in small businesses.

An infographic showing how private investors contribute funds to a Small Business Investment Company. The SBA matches funds $2 to $1, and the SBIC then distributes funds to small businesses in the form of investments.

What you can get

SBICs invest in small businesses through debt, equity, or a combination of both. Debt is a loan an SBIC gives to a business, which the business must pay back, along with any interest. Equity is a share of ownership an SBIC gets in a business in exchange for providing funding. Sometimes, an SBIC invests in a business through both debt and equity. Such an investment includes both loans and shares of ownership. A typical SBIC investment is made over a 3-year period.

Debt

A typical SBIC loan has an interest rate between 9% and 16%, ranging from $250,000 to $10 million.

Equity

SBICs will invest in your business in exchange for a share of ownership in your company. Typical investments range from $100,000 to $5 million.

Debt with equity

Financing includes loans and ownership shares. Loan interest rates are typically between 10% and 14%. Investments range from $250,000 to $10 million.

Check your eligibility

SBICs typically target mature, profitable businesses with sufficient cashflow to pay interest. However, each SBIC has its own investment profile in terms of targeted industry, geography, company maturity, and the types and size of financing they provide. There are a few universal requirements.

A U.S. flag over an image of the country.

Be a U.S. business

At least 51% of your employees and assets must be within the U.S.

Be a small business

Qualify as a small business according to SBA size standards.

Energy, entertainment, and medical industries are represented.

Be in an approved industry

Farmland, real estate, and financing are some of the industries that don’t qualify.

Find an investor

If your small business is interested in SBIC financing, take the following steps when you approach an SBIC.

A man researching an SBIC on his laptop.

1. Research an SBIC

Find an SBIC using our online directory, and make sure they’re actively investing in businesses in your region, size, and industry.

2. Prepare your business plan

Get ready to make the case that investing in your business would be profitable for the SBIC.

Business professionals having a conversation.

3. Contact an SBIC

For the best chance to get financing, use your network. Talk to accountants, attorneys, and executives to get an introduction to an SBIC.

SBIC directory

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Industries

Investing status

Investor name & address	Industry	Active since	Investing status	Contact info
1st Source Capital Corporation 100 North Michigan St South Bend, IN46601	Diversified	1983	Not likely investing	Andrea Short 574-235-2416
AAVIN Equity Partners I, L.P. 1245 First Avenue SE, Cedar Rapids, IA52402	Diversified	2000	Not likely investing	James Thorpe 319-247-1072
AAVIN Mezzanine Fund, LP 1245 First Avenue SE Cedar Rapids, IA52402	Diversified	2015	Likely still investing	James Thorp 319-247-1072
AEA Investors Small Business Fund LP 666 Fifth Avenue 36th Floor New York, NY10103	Diversified	2004	Not likely investing	John Cozzi 212-702-0504
Accretive Investors SBIC, L.P. 51 Madison Avenue, 31st Floor New York, NY10010	Diversified	2003	Not likely investing	J. Cline 646-282-1920
Aldine Capital Fund II, L.P. 30 West Monroe Street, Suite 710 Chicago, IL60603	Diversified	2013	Likely still investing	Michael Revord 312-346-3950
Aldine SBIC Fund, L.P. 30 West Monroe Street Suite 710 Chicago, IL60603	Diversified	2006	Not likely investing	Albert Brahm 312-346-3950
Alpha Capital III SBIC, L.P. 122 South Michigan Avenue Suite 1700 Chicago, IL60603	Diversified	2001	Not likely investing	Andrew Kalnow 312-322-9800
Alpine Investors IV SBIC, LP Two Embarcadero Center, Suite 2320 San Francisco, CA94111	Diversified	2009	Not likely investing	Tara Genstil 415-392-9100
Alpine Investors V SBIC, LP Two Embarcadero Center, Suite 2320 San Francisco, CA94111	Diversified	2014	Likely still investing	Tara Genstil 415-392-9100

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