The Small Business Administration’s (SBA) Office of Investment and Innovation invites proposals from early stage investors and fund managers actively raising, or looking to raise, a dedicated fund in the next 18 months to submit materials to be licensed as Early Stage Small Business Investment companies. Licensed Early Stage SBICs may receive SBA-guaranteed debenture leverage up to 100 percent of their Regulatory Capital, up to a maximum of $50 million. However, Early Stage SBICs may request less than 100 percent of their Regulatory Capital.
In order to receive SBA leverage, funds must raise $20M of Private Capital and invest at least 50% of their capital in U.S. Early Stage companies. SBA defines Early Stage companies as companies that have not yet achieved positive cash flow from operations. The remaining 50% must be invested in eligible U.S. Small Businesses. SBA will match, on a dollar-for-dollar basis, up to $50M of a qualified fund’s Private Capital. For more information on the process, criteria, and selection, click here or contact Scott Schaefer of SBA at firstname.lastname@example.org.