Guide to Small Business Investment Companies (SBICs)

Choose debt or equity

SBICs and SSBICs use their own capital plus funds raised through the SBA to make equity capital and long-term loans. Debenture SBICs focus on more mature companies, providing debt or debt-with-equity loans. Participating-securities SBICs are able to invest in younger companies with pure equity investments.

I recommend: Get the detailed rules from the SBA.

Craft your pitch

SBICs will expect to see a detailed business plan laying out your strategy and your financials.

I recommend: The National Association of Small Business Investment Companies' guide for entrepreneurs walks you through the application process.

Contact an SBIC or SSBIC

They're located throughout the country, but they differ in dollar limits of financing, investment policies, and preferences for certain types of and locations of businesses.

I recommend: SBICs and SSBICs can be found through the SBA and the National Association of Small Business Investment Companies.