WASHINGTON– The U.S. Small Business Administration (SBA) announced significant milestones in expanding access to private equity and debt capital for American small businesses and startups through the Small Business Investment Company (SBIC) Program. This announcement was made by Administrator Isabel Casillas Guzman during a White House convening with National Economic Council Director Lael Brainard.
The event, attended by over 60 leaders from private investment firms and industry associations, highlighted the progress made in regulatory reforms to the SBIC Program. Among the speakers were Brett Palmer, President of the Small Business Investor Alliance; Frank St. John, COO of Lockheed Martin; and Laurie Giandomenico, SVP of MITRE Ingenuity, among others.
Administrator Guzman emphasized that these reforms aim to increase funding for small businesses and startups in underserved and undercapitalized markets, as well as in critical technologies. One of the key milestones announced was the licensing and commitment of up to $125 million in SBA government-guaranteed funding to the first Accrual SBIC Licensee. Additionally, the first SBA-DoD SBIC Critical Technologies Initiative (SBICCT) License Applicant received SBA Green Light Approval to raise private capital.
In line with President Biden's agenda to grow the economy from the middle out and bottom up, these milestones reflect the administration's commitment to expanding access to private equity and debt capital. Administrator Guzman stated, "Under the Biden-Harris Administration, the SBA is committed to expanding equitable access to capital to more entrepreneurs, especially those who have been undercapitalized."
Bailey DeVries, SBA Associate Administrator for Investment and Innovation, highlighted the impact of the regulatory reforms on the SBIC Program. "Following the recent regulatory reforms, SBIC funds can represent a spectrum of investment strategies, stages, industries, and geographic focus. The federal government can now amplify private sector investment in capital-constrained and underserved markets," DeVries said.
The SBIC Program, which has been licensing and regulating private market investment funds since 1958, plays a crucial role in providing equity and debt investments in small businesses and startups. Currently, the program consists of more than 310 private funds with over $42 billion in public and private assets under management.
Last year alone, SBICs invested $8 billion in over 1,500 companies, creating and sustaining over 130,000 U.S. jobs. The SBA's efforts to support small businesses and drive job growth align with the Biden-Harris Administration's focus on building a strong and resilient economy.
The SBA's Office of Investment and Innovation (OII) leads programs that provide financial capital and R&D funds to the high-growth small business community. Through public-private partnerships, the OII supports small businesses on their journey from idea to IPO.
With these milestones and reforms, the SBA is taking crucial steps to diversify and expand its investor network. By filling funding gaps in underserved communities, undercapitalized critical technologies, and innovation investment, the SBA is working towards its mission of providing equity and debt for entrepreneurs to start and grow their businesses.
The SBA's commitment to expanding access to capital for entrepreneurs is a significant step towards creating a more inclusive and vibrant small business ecosystem. As the SBA continues to support small businesses, it reinforces the American dream of business ownership and strengthens the backbone of the economy.
For more information about the U.S. Small Business Administration and its programs, visit sba.gov.
