Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

SBIC Capital for Small Businesses

BY Bruce A. Kinn, David R. Pierson
August 03, 2003

Since the overhaul of the small business investment company (SBIC) program in the early 1990's, the program has grown rapidly to become a large source of equity and mezzanine capital for small and medium-sized businesses. This article provides an overview of the SBIC program, with particular emphasis on those features that benefit entrepreneurs.

Growth of the SBIC Program

SBICs are privately managed venture capital or other private equity funds that receive funding from the U.S. government in the form of debt (debentures) or equity (participating securities), which they combine with contributions from their private investors to create a large pool of capital to invest in eligible companies. For fiscal year 2003, government debenture leverage is available to SBICs in the amount of $3 billion, and equity leverage is available to SBICs in the amount of $4 billion. With so much low cost capital available, it is no surprise that investment management teams are lining up to apply for SBIC licenses.

Read These Next
Yachts, Jets, Horses & Hooch: Specialized Commercial Leasing Models Image

Defining commercial real estate asset class is essentially a property explaining how it identifies — not necessarily what its original intention was or what others think it ought to be. This article discusses, from a general issue-spot and contextual analysis perspective, how lawyers ought to think about specialized leasing formats and the regulatory backdrops that may inform what the documentation needs to contain for compliance purposes.

Hyperlinked Documents: The Latest e-Discovery Challenge Image

As courts and discovery experts debate whether hyperlinked content should be treated the same as traditional attachments, legal practitioners are grappling with the technical and legal complexities of collecting, analyzing and reviewing these documents in real-world cases.

Identifying Your Practice's Differentiator Image

How to Convey Your Merits In a Way That Earns Trust, Clients and Distinctions Just as no two individuals have the exact same face, no two lawyers practice in their respective fields or serve clients in the exact same way. Think of this as a "Unique Value Proposition." Internal consideration about what you uniquely bring to your clients, colleagues, firm and industry can provide untold benefits for your law practice.

Risks and Ad Fraud Protection In Digital Advertising Image

The ever-evolving digital marketing landscape, coupled with the industry-wide adoption of programmatic advertising, poses a significant threat to the effectiveness and integrity of digital advertising campaigns. This article explores various risks to digital advertising from pixel stuffing and ad stacking to domain spoofing and bots. It will also explore what should be done to ensure ad fraud protection and improve effectiveness.

Turning Business Development Plans Into Reality Image

This article offers practical insights and best practices to navigate the path from roadmap to rainmaking, ensuring your business development efforts are not just sporadic bursts of activity, but an integrated part of your daily success.