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https://www.sba.gov/funding-programs/investment-capital
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Investment capital
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.
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.
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.
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.
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.
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
All
All
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
|
Showing 1 - 10 of 317
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