Small Business Investment Company - SBIC

AAA

DEFINITION of 'Small Business Investment Company - SBIC'

A privately-owned investment company that is licensed by the Small Business Administration (SBA). Small Business Investment Companies (SBICs) supply small businesses with financing in both the equity and debt arenas. They provide a viable alternative to venture capital firms for many small enterprises seeking startup capital.

INVESTOPEDIA EXPLAINS 'Small Business Investment Company - SBIC'

Small Business Investment Companies are allowed to borrow from the federal government in order to augment the funds of private investors. SBICs usually focus on investments in the $100,000 to $250,000 range, and tend to be considerably more forgiving than venture capital firms in their underwriting requirements.

RELATED TERMS
  1. Small Business Administration - ...

    The Small Business Administration (SBA) is an autonomous U.S. ...
  2. Venture Capital

    Money provided by investors to startup firms and small businesses ...
  3. Equity

    1. A stock or any other security representing an ownership interest. ...
  4. Debt

    An amount of money borrowed by one party from another. Many corporations/individuals ...
  5. Provisional Patent Application

    A short-term means of protecting an invention that requires less ...
  6. Cottage Industry

    A small-scale industry often operated out of a home, rather than ...
Related Articles
  1. How To Make $1 Million In Your Small ...
    Entrepreneurship

    How To Make $1 Million In Your Small ...

  2. Uncovering Hidden Debt
    Bonds & Fixed Income

    Uncovering Hidden Debt

  3. 7 Steps To Selling Your Small Business
    Entrepreneurship

    7 Steps To Selling Your Small Business

  4. Essential Tips For Would-Be Entrepreneurs
    Entrepreneurship

    Essential Tips For Would-Be Entrepreneurs

comments powered by Disqus
Hot Definitions
  1. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  2. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  3. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  4. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  5. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
  6. Earnings Before Interest After Taxes - EBIAT

    A financial measure that is an indicator of a company's operating performance. EBIAT, which is equivalent to after-tax EBIT ...
Trading Center