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WASHINGTON, Oct. 18, 2022 (GLOBE NEWSWIRE) — TODAY, admin Isabella Casillas Guzman, the head of US Small Business Administration (SBA) And the voice of President Biden’s Cabinet of America’s 33 million small businesses, Federal Gazette Publishing SBA Proposed Reforms to the Small Business Investment Corporation (“SBIC”) Program to Reduce Financial Barriers and Increase Access and Diversity in the U.S. Small Business Investment Ecosystem.
“SBA’s SBIC program has helped generations of entrepreneurs close the capital gap to build and scale resilient businesses. Communities are still underinvested, and the Biden-Harris administration is committed to closing those capital gaps.” Admin Guzman“The reforms we propose to the SBIC program are intended to diversify the SBIC network and portfolio and to encourage patient capital to support critical industries in building a better America. We look forward to working with our private investment partners and receiving important feedback to further strengthen this important program.”
The proposed rule, the diversification and growth of SBIC investments, is a structural change in the SBIC program that has historically restricted the flow of SBIC regulatory capital to small businesses and start-ups that are underserved by retail investors alone. Trying to deal with the sides.
Proposed reforms listed on the Federal Register include:
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New private fund managers and private funds focused on equity and long-term debt investments in small businesses and start-ups, especially in underserved communities and regions, capital-intensive industries, and technologies critical to national security. reduce barriers to participation in SBIC programmes.
SBIC is a private market investment fund licensed as “SBIC” and regulated by the SBA. SBIC invests or lends private capital plus funds borrowed under his SBA Guarantee to make equity and debt investments in SMEs and start-ups. Last year, at 299, SBIC invested in more than 1,500 of his companies, creating and retaining more than 103,000 US jobs. Such investments are funded by his SBIC program portfolio of over $37 billion of committed investment capital focused exclusively on small businesses and start-ups across the United States.
“The SBIC program was established in response to a report issued by the Federal Reserve in 1958. Acknowledging the lack of adequate funding sources for private equity and long-term lending to create and grow such businesses, the SBA’s proposed rulemaking would strengthen, broaden, and diversify the scope and impact of the SBIC program. We are working to advance our common mission to solve our country’s access to capital problems and look forward to hearing from industry. Doing.” Bailey DeVries, Associate Administrator, Investments and Innovation, said:
The proposed rule will be subject to public scrutiny, Federal Gazette Comments are due by December 19, 2022, and the proposed reforms are expected to enter into force with the final rule published the following year.
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About the US Small Business Administration
The US Small Business Administration helps advance the American dream of business ownership. As the single go-to resource and voice for federally-backed small businesses, the SBA empowers entrepreneurs and small business owners to help start, grow, expand, or recover from a declared crisis. We provide the resources and support you need. disaster. We deliver our services through an extensive network of SBA field offices and partnerships with public and private organizations. For more information, please visit the following URL: www.sba.gov.
CONTACT: Press Offce United States Small Business Administration press_office@sba.gov
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