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In searching for an extra boost of financing for your company you have probably researched resources like angel investors and venture capitalists. One funding group you may not have considered is the Small Business Investment Company (SBIC). There are hundreds of these Small Business Administration-backed investment firms with plenty of ready capital waiting to be devoted to the right company.

SBICs have been around for more than half a century and today there are over 300 operating firms. The amount of money available through the SBIC channels has risen 85 percent, to record levels in the last two years. Although they are completely private companies, SBICs are licensed and regulated by the SBA. That government-backing has helped attract many investors who like the safety of the federal guarantees. These SBICs are unique investment groups because their SBA charters only allow them to invest in small businesses, specifically with 25 percent of their investments going to companies with less than $2 million in after-tax income.

Financing can be provided in the form of loans or equity investments, like angel investors or venture capitalists can offer, but unlike those two groups, SBICs tend to be long-term investors, seeing each small business through several growth stages. They do business with new-but-growing firms as well as small established companies, but SBICs are not interested in providing seed money to entrepreneurs with nothing but a business idea.

Many SBICs specialize in financing certain industries and business categories, but there are a lot that are open to all types of firms. Once you have done some research and found a few SBICs that might be a good match with your company, be sure to prepare a solid business plan presentation. Creating some contacts within the SBIC is also great way to make sure your business gets noticed.

For more information you can visit the SBA’s SBIC webpage  or to see a full list of SBICs by state you can visit the SBA’s directory.


Search for Small Business Loan Sources and receive your matched lender list
AND received FOUR free Business eBooks worth $39.95!
Search for Small Business Loan Sources