Small Business Investment Companies are allowed to borrow from the federal government to augment the funds of private investors. SBICs seek attractive net returns for their private investors; SBICs use their investment criteria and processes to make investment decisions. SBA has no influence over SBIC investment decisions. Small Business Investment Companies are privately managed for profit investment funds that use privately raised capital and guaranteed SBA loans to provide long-term loans and equity investments to qualifying small businesses.
SBA loans are made through banks, credit unions and other lenders who partner with the SBA. The SBA provides a government-backed guarantee on the part of the loan. Under the Recovery Act and the Small Business Jobs Act, SBA loans were enhanced to provide up to a 90 percent guarantee to strengthen access to capital for small businesses after credit froze in 2008. The agency had record lending volumes in late 2010
A privately-owned investment company that is licensed by the Small Business Administration (SBA). Small Business Investment Companies (SBICs) supply small businesses with financing in both the equity and debt arenas. They provide a viable alternative to venture capital firms for many small enterprises seeking startup capital. SBICs usually focus on 100,000-250,000 dollar investments and tend to be considerably more forgiving than venture capital firms in their underwriting requirements.
Alexander Scharf was the Vice President of Lloyd Capital Corporation that was an SBIC providing loans and equity to small businesses. It was founded in 1975; Lloyd Capital Corporation is a small organization in the loan brokers industry located in New York, NY.
Tagged: Alexander Scharf