The SBIC Program — An Alternative Source Of Capital

Law360, New York (February 9, 2010, 9:53 AM EST) -- In this challenging fundraising environment, private equity (“PE”) managers have shown increased interest in obtaining capital through the Small Business Investment Company (“SBIC”) program, which provides attractive loans to PE firms licensed by the Small Business Administration (the “SBA”) for the purpose of financing small businesses.

Benefits of the SBIC Program

The SBIC program offers a PE fund access to SBA leverage, enabling the PE fund to:

- Borrow at rates generally lower than traditional lending sources (September 2009 SBA leverage was priced at just over...
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