Small Business Investment Companies

To establish privately owned and managed investment companies, which are licensed and regulated by the U.S.

Small Business Administration; to provide equity capital and long term loan funds to small businesses; and to provide advisory services to small businesses.



Agency - Small Business Administration

The Small Business Administration maintains and strengthens the nation's economy by aiding, counseling, assisting and protecting the interests of small businesses and by helping families and businesses recover from national disasters.

Office - See Regional Agency Offices.

See Appendix IV of the Catalog of Federal Domestic Assistance under Small Business Administration.
Website Address

http://www.sba.gov




Program Accomplishments

Not Applicable.

Uses and Use Restrictions

The investment companies provide management and financial assistance on a continuing basis to eligible small business concerns.

Financial assistance is provided by making long-term loans to these small concerns, and/or by the purchase of debt or equity type securities issued by these firms.

Emphasis is on providing assistance to the pioneering, innovating-type concerns developing new products, processes, and markets.

Specialized investment companies organized/licensed under former Section 301(d) of the authorizing statute (SSBICs) must restrict eligibility of small concerns financed by such investment companies to those owned and operated by individuals whose participation in the free enterprise system has been hampered by social or economic disadvantages.

Debentures and participating securities are issued by the SBIC and guaranteed by SBA for a term not to exceed ten years.

All investment companies generally may not self-deal, finance 'big business,' or invest over 30 percent of private capital in any single small concern.

Eligibility Requirements

Applicant Eligibility

Any chartered small business investment company having private capital of not less than $5 million, having qualified management, giving evidence of sound operation, and establishing the need for SBIC financing in the geographic area in which the applicant proposes to operate.

Beneficiary Eligibility

Individual businesses (single proprietorship, partnership or corporation) which satisfy the established criteria of a small business. SSBICs beneficiary must also be a business owned and operated by socially or economically disadvantaged individuals.

Credentials/Documentation

An investment company must be chartered as a corporation, limited partnership (with individuals, corporation, partnership, or limited liability company as general partner), or limited liability company. Determination is made as to need in area, general business reputation and character of proposed owners and management and probability of successful operations. All loans to, or investments in, small concerns shall be of such sound value as reasonable to assure repayment. This program is excluded from coverage under 2 CFR 200, Subpart E - Cost Principles.

Aplication and Award Process

Preapplication Coordination

Preapplication coordination is not applicable.

Environmental impact information is not required for this program.

This program is excluded from coverage under E.O.

12372.

Application Procedures

This program is excluded from coverage under 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Request information and appropriate forms from SBA's Investment Division. Complete application requirements and submit with required application fee to SBA's Investment Division.

Award Procedures

Applicant is notified by issuance of a license from the Investment Division of the Small Business Administration.

Deadlines

Contact the headquarters or regional office, as appropriate, for application deadlines.

Authorization

Small Business Investment Act of 1958, Title III (15 U.S.C. 681 et seq.), Public Law 85-699.

Range of Approval/Disapproval Time

Average of 180 days.

Appeals

Proponents may reapply at any time.

Renewals

Additional information available at SBA's website at www.sba.gov.

Assistance Considerations

Formula and Matching Requirements

This program has no statutory formula. Matching Requirements: Additional information available at SBA's website at www.sba.gov. MOE requirements are not applicable to this program.

Length and Time Phasing of Assistance

Additional information available at SBA's website at www.sba.gov. See the following for information on how assistance is awarded/released: Information available at www.sba.gov.

Post Assistance Requirements

Reports

See information at www.sba.gov.

Additional information available at www.sba.gov.

Information available at www.sba.gov.

Additional information available at SBA's website at www.sba.gov.

Information available at www.sba.gov.

Audits

In accordance with the provisions of 2 CFR 200, Subpart F - Audit Requirements, non-Federal entities that expend financial assistance of $750,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Non-Federal entities that expend less than $750,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in 2 CFR 200.503. Annual audit by a certified public accountant and periodic examinations by SBA personnel.

Records

Current financial records, minutes of meetings of stockholders, general partners, directors, executive committees, and time spent and charges made for management consulting services performed must be maintained for 6 years.

Financial Information

Account Identification

73-1154-0-1-376.

Obigations

(Guaranteed/Insured Loans) FY 16 $2,514,000,000; FY 17 est $4,000,000,000; and FY 18 est $4,000,000,000

Range and Average of Financial Assistance

Additional information available at SBA's website at www.sba.gov.

Regulations, Guidelines, and Literature

13 CFR Chapter I, Part 107.

Information Contacts

Regional or Local Office

See Regional Agency Offices. See Appendix IV of the Catalog of Federal Domestic Assistance under Small Business Administration.

Headquarters Office

Joseph Shepard 409 3rd Street, SW 6th Floor, Washington, DC, District of Columbia 20416 Email: OII.FrontOffice@sba.gov Phone: 202-619-0384

Criteria for Selecting Proposals

Not Applicable.



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