SBICs are privately owned and managed funds that use private money, leveraged by a Small Business Administration (SBA) guarantee to invest it in qualified small businesses.
Currently, the maximum amount of debt (aka "outstanding leverage) — or loans that have been disbursed but not fully paid back — available to SBICs is $225 million. This bill would raise that figure to $350 million. This $250 million restriction applies to SBICs that have multiple licenses under the same management umbrella — known as “Family of Funds.”
This funding would be made to available by the SBA to SBICs that aren’t under capital impairment (meaning that their loan portfolio is worth less than its stated value).