This bill — the Spurring Business in Communities Act of 2017 — would require the Small Business Administration (SBA) to focus on underserved areas as the Small Business Investment Company (SBIC) applications are reviewed and processed. SBIC applicants from under-licensed states and under-financed states would be exempt from full capital requirements. The SBA would be required to report annually on its progress toward increasing the geographic dispersion of SBICs.
The SBIC program was founded in 1958 as one of the many financial assistance programs available through the SBA. The SBA doesn’t directly invest into small businesses, but provides loan guarantees to qualified investment management firms with expertise in certain sectors or industries.