Small Business Investment Company Investments

Rationale

Small business investment company (SBIC) financing is important because it helps small companies in their critical start-up phase obtain much-needed, vital seed capital. Most states boast a number of public or nonprofit business investment or loan funds. SBICs are federally licensed investment companies that target financing to economically and socially disadvantaged entrepreneurs. SBICs offer hard-to-find, patient, growth-oriented capital in the form of long-term loans, equity, or convertible debt. In exchange for a pledge to invest exclusively in small business, SBICs qualify for federal Small Business Administration guarantees.

About Measure

SBIC Financing to businesses by state (in dollars) per worker (in 2000).

Source

U.S. Small Business Administration. (2001). SBIC financing statistics. Washington D.C.: Author.