Related Organizations

Small Business Investment Company [15 USC 682(b)]

A small business investment company (SBIC) is a venture capital firm licensed and regulated by the Small Business Administration (SBA) that provides debt and equity financing to small businesses. [4] The SBA can provide various types of financial assistance such as guaranteeing the debt portion of the SBIC investments, allowing them to leverage private capital.

A bank is authorized to purchase SBIC stock provided that the aggregate amount of such investments does not exceed 5 percent of the bank’s capital and surplus. The bank’s receipt and retention of a dividend from an SBIC in the form of stock of a corporate borrower of the SBIC is not a purchase of stock within the meaning of 12 USC 24(Seventh). (See 12 CFR 7.1015.)

4.
The size eligibility requirements for small businesses receiving SBA financial assistance through the SBIC program are prescribed by 13 CFR 121.301.
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