The U.S. Small Business Administration (SBA) recently announced the Federal Register publication of SBA-proposed reforms to the Small Business Investment Company (SBIC) program.
Small Business Investment Company Reforms Proposed by SBA to Address Diversity
The proposed reforms are designed to reduce financial barriers while increasing access and diversity in the small business investment ecosystem in the United States. Structural aspects of the SBIC program will addressed by the reforms with the aim of improving the flow of SBIC regulatory capital to small businesses and start-ups deemed inadequately served by private investors alone.
Small Businesses to Benefit from Reforms
The proposed reforms will help small businesses and start-ups from underserved communities benefit from reduced barriers to SBIC program participation, especially with new private fund managers and private funds which will focus on equity and longer-term debt investments. As well as underserved communities and geographies, businesses in capital-intensive industries and technologies critical