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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.
A storefront.
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.
A woman practicing her business pitch.
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

Investor Name
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Investor name & addressIndustryActive sinceInvesting statusContact info
1st Source Capital Corporation
100 North Michigan St
South Bend, IN46601
Diversified1983Not likely investing
Andrea Short
574-235-2416
AAVIN Equity Partners I, L.P.
1245 First Avenue SE,
Cedar Rapids, IA52402
Diversified2000Not likely investing
James Thorpe
319-247-1072
AAVIN Mezzanine Fund, LP
1245 First Avenue SE
Cedar Rapids, IA52402
Diversified2015Likely still investing
James Thorp
319-247-1072
AEA Investors Small Business Fund LP
666 Fifth Avenue 36th Floor
New York, NY10103
Diversified2004Not likely investing
John Cozzi
212-702-0504
Accretive Investors SBIC, L.P.
51 Madison Avenue, 31st Floor
New York, NY10010
Diversified2003Not likely investing
J. Cline
646-282-1920
Aldine Capital Fund II, L.P.
30 West Monroe Street, Suite 710
Chicago, IL60603
Diversified2013Likely still investing
Michael Revord
312-346-3950
Aldine SBIC Fund, L.P.
30 West Monroe Street Suite 710
Chicago, IL60603
Diversified2006Not likely investing
Albert Brahm
312-346-3950
Alpha Capital III SBIC, L.P.
122 South Michigan Avenue Suite 1700
Chicago, IL60603
Diversified2001Not likely investing
Andrew Kalnow
312-322-9800
Alpine Investors IV SBIC, LP
Two Embarcadero Center, Suite 2320
San Francisco, CA94111
Diversified2009Not likely investing
Tara Genstil
415-392-9100
Alpine Investors V SBIC, LP
Two Embarcadero Center, Suite 2320
San Francisco, CA94111
Diversified2014Likely still investing
Tara Genstil
415-392-9100
Showing  1  - 10  of  317

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