Small businesses that would otherwise have difficulty securing private equity or venture capital may now find funding easier to get as a result of changes made as part of the American Recovery and Reinvestment Act to the US Small Business Administration’s Small Business Investment Company (SBIC) program.
“The Recovery Act expands SBA’s venture capital program to increase the pool of investment funding available to the Small Business Investment Companies licensed by SBA,” said SBA Administrator Karen G. Mills. “We believe those companies will be better equipped by these changes to help sustain and grow small businesses for their next important growth steps.” SBICs are privately owned and managed venture capital firms which are licensed and regulated by SBA. SBICs use a combination of funds raised from private sources and money raised through the use of SBA guarantees to make equity and mezzanine capital investments in small businesses. There... [Read Full Article]