Small Business Investment Company - SBIC


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.

BREAKING DOWN '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.

  1. Equity

    Equity is the value of an asset less the value of all liabilities ...
  2. Small Business Administration - ...

    The Small Business Administration (SBA) is an autonomous U.S. ...
  3. Debt

    An amount of money borrowed by one party from another. Many corporations/individuals ...
  4. Venture Capital

    Money provided by investors to startup firms and small businesses ...
  5. Operating Cost

    Expenses associated with the maintenance and administration of ...
  6. Venture Capitalist

    An investor who either provides capital to startup ventures or ...
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