Definition:
A Small Business Investment Company (SBIC) is a private lending company which is licensed and regulated by the Small Business Administration (SBA). SBIC's offer venture capital financing to higher-risk small businesses, and SBIC loans are guaranteed by the 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 are approximately 338 SBICs with $17.4 billion in capital You can see a list of SBICs on the SBA website.
The mission of the SBIC program is:
stimulating and supplementing the flow of private equity capital and long term loan funds for the sound financing, growth, expansion and modernization of small business operations while insuring the maximum participation of private financing sources
