The SBIC Program has grown substantially in recent years. While the program is helping small businesses with some of their capital needs, the rapid growth of the program has made the application process, the standard operating procedures, and communication with the SBA difficult.
As a result, the House Small Business Subcommittee on Investigations, Oversight, and Regulations held a hearing last week to discuss if the SBIC was “meeting the capital needs of small business owners and entrepreneurs while reducing risk to taxpayers.” As it turns out, it is…mostly
While the overall reception of the SBIC was a positive one, there was a recognition that the program needs to be modernized. Brett Palmer, President of the Small Business Investor Alliance, explained, “In addition to the technology improvements previously mentioned, the licensing process should have more transparency and fairness to applicants.”
As it becomes modernized (or even if it doesn’t) the importance of the SBIC Program is likely to grow. Starting last Monday, the SBA increased the “small business” size standard for 70 industries within the Agriculture, Forestry, Fishing and Hunting, Finance and Insurance, Management of Companies and Enterprises, Arts, Entertainment, and Recreation and Support Services for Mining categories. The new standards allow 16,650 previously ineligible companies to now qualify for SBA financing
Given the wind on the back of the SBA and SBIC program, it would be prudent to consider the benefits of an SBA/SBIC relationship for your firm. In the video below, watch Axial Member Joe Burkhart, Managing Director at Saratoga Investment Corp., present the ins and outs of the SBIC program, how to access its capital, and why it’s a smart option.