he Small Business Administration, typically referred to as SBA, is the United States government’s leading agency that is primarily dedicated to offering and providing support to the country’s entrepreneurs and businesses establishments.
The Small Business Administration’s efforts are guided by their mission which is “to maintain and strengthen the nation’s economy by enabling the establishment and viability of small businesses and by assisting in the economic recovery of communities after disasters.”
In keeping with its agency objectives, the SBA has been consistently running the Small Business Investment Companies (SBIC) program.
The Small Business Investment Companies Program revolves around the idea of developing privately operated and managed investment companies which are to be licensed and regulated by the Small Business Administration, so as to provide equity capital, long term loans, and advisory services to small enterprises requiring such services.
Consequently, the established Small Business Investment Companies could then provide financial and management assistance on a constant basis to assist the concern’s of small enterprises matching the program’s eligibility criteria.
The kind of financial aid that will be provided by the established SBIC will concentrate mainly on concerns such as pioneering, innovating strategies like the advancement of new goods, processes and markets.
Any small investment company will be considered qualified to take part in this program as long as they have a private capital of not less than $3,000,000 (for companies who chose not receive leverage from SBA) or $5 million (for companies who chose to receive leverage from SBA); and as long as they have a qualified and capable management staff which could lead to proper business operation.
The SBA, the principal agency funding the SBIC Program, is the United States government’s leading agency that is responsible for the maintenance, strengthening, and protection of nation’s economy. The agency has consistently making this happen by aiding, counseling, assisting and protecting the interests of minority-owned business enterprises and establishments.
The Small Business Investment Companies Program is an essential addition to the all the existing programs of the SBA because the goals and objectives of the program are very much in keeping with their agency’s mission.
Furthermore, the program is also believed to help the agency achieve its objective of truly serving minority-owned business establishments and disadvantaged entrepreneurs.