Small Business Investment Companies–set up by Congress back in 1958 to operate as private businesses—provide equity capital and long-term loans to small businesses, especially those suffering from social or economic disadvantages. More than 400 SBICs currently operate in the U.S. You would be surprise to know that some well-known companies have utilized SBIC’s to include Fed Ex, Apple and others.
The recent stimulus bill made some changes in the regulations of SBICs that should help make these funds more available to a startup company. The percentage of funds that SBICs are now required to invest in smaller businesses has been raised from 20 percent to 25 percent. SBICs have been around for decades now. While many businesses don’t know about SBICs you can find out if there is local office in your area by visiting the National Association of SBICs.