Small business investment companies : overview, performance, and analyses of the SBA program / Kelly E. Nichols, editor.

Format:

Book

Contributor:

Nichols, Kelly E., editor.

Series:

Business issues, competition and entrepreneurship series.

Business Issues, Competition and Entrepreneurship

Language:

English

Subjects (All):

United States. Small Business Administration--Rules and practice.

United States.

Small business investment companies--United States.

Small business investment companies.

Physical Description:

1 online resource (140 p.)

Place of Publication:

New York : Novinka, 2016.

Summary:

The Small Business Administration's (SBA's) Small Business Investment Company (SBIC) program is designed to enhance small business access to venture capital by stimulating and supplementing "the flow of private equity capital and long-term loan funds which small-business concerns need for the sound financing of their business operations and for their growth, expansion, and modernization, and which are not available in adequate supply." Facilitating the flow of capital to small businesses to stimulate the national economy was, and remains, the SBIC program's primary objective. This book describes the SBIC program's structure and operations, focusing on SBIC eligibility requirements, investment activity, and program statistics.

Contents:

SMALL BUSINESS INVESTMENT COMPANIES: OVERVIEW, PERFORMANCE, AND ANALYSES OF THE SBA PROGRAM; SMALL BUSINESS INVESTMENT COMPANIES: OVERVIEW, PERFORMANCE, AND ANALYSES OF THE SBA PROGRAM; Library of Congress Cataloging-in-Publication Data; CONTENTS; PREFACE; Chapter 1: SBA SMALL BUSINESS INVESTMENT COMPANY PROGRAM*; SUMMARY; SBIC PROGRAM OVERVIEW; SBIC TYPES; SBIC ELIGIBILITY REQUIREMENTS; SBIC APPLICATION PROCESS; SBIC CAPITAL INVESTMENT REQUIREMENTS; Debenture SBICs; Participating Securities SBICs; Impact Investment Debenture SBICs; Early Stage Debenture SBICs

KEY FEATURES OF REGULAR SBIC TYPESSBIC INVESTMENTS IN SMALL BUSINESSES; LEVERAGE; Leverage Drawdown; Debenture SBIC Leverage Requirements; Participating Securities SBIC Leverage Requirements; Impact Investment Debenture SBIC Leverage Requirements; Early Stage Debenture SBIC Leverage Requirements; REPORTING REQUIREMENTS; SBIC PROGRAM STATISTICS; Total Financing; Financing to Specific Demographic Groups; Financing by State; Financing by Industry; LEGISLATIVE ACTIVITY; Legislation to Target Additional Assistance to Startup and Early Stage Small Businesses; Discussion

Legislation to Increase SBIC Financing LevelsDiscussion; CONCLUDING OBSERVATIONS; APPENDIX. SMALL BUSINESS ELIGIBILITY REQUIREMENTS AND APPLICATION PROCESS; Small Business Eligibility Requirements; Small Business Application Process; End Notes; Chapter 2: SMALL BUSINESS INVESTMENT COMPANIES: INVESTMENT OPTION FOR BANKS; ABSTRACT; I. WHAT ARE SBICS?; II. WHY ARE SBICS OF INTEREST TO BANKS?; III. HOW DO SBICS WORK?; III.A. SBIC Leverage and Cost of Capital; III.B. SBIC Licenses and Licensing Process; III.C. SBIC Operations and Oversight; III.D. SBIC Fund Cycles

III.E. Investment Pay-In and Return of Investor CapitalIII.F. Other Vehicles for Participating in the SBIC Program; IV. KEY RISKS AND REGULATORY CONSIDERATIONS; IV.A. Risks; IV.B. Regulatory Considerations; V. WHAT ARE TYPICAL RETURNS ON SBIC INVESTMENTS?; VI. WHAT ARE THE BARRIERS TO BANK PARTICIPATION?; VII. CONCLUSION; APPENDIX A. HOW BANKS CAN USE THE READ FORM; APPENDIX B; How Banks Can Use the CIP Worksheet; APPENDIX C; IRR; APPENDIX D; Debenture SBIC Performance; Definitions and Methodology; APPENDIX E; Resource Directory; Office of the Comptroller of the Currency

Industry and Private Firms ResourcesEnd Notes; Chapter 3: SMALL BUSINESS INVESTMENT COMPANIES: CHARACTERISTICS AND INVESTMENT PERFORMANCE OF SINGLE AND MULTIPLE LICENSEES*; WHY GAO DID THIS STUDY; WHAT GAO RECOMMENDS; WHAT GAO FOUND; ABBREVIATIONS; BACKGROUND; MULTIPLE LICENSEES CONTROLLED MOST SBA LEVERAGE AND SHARED SIMILAR CHARACTERISTICS WITH SINGLE LICENSEES; Multiple Licensees Controlled Most SBICs and SBA Leverage in 2014; Few Multiple Licensees Used Allowable Maximum Leverage; Single and Multiple Licensees Had Largely Similar Characteristics

MULTIPLE LICENSEES HAVE OUTPERFORMED SINGLE LICENSEES BUT THEIR INVESTMENTS HAVE SIMILAR ATTRIBUTES ACROSS A NUMBER OF MEASURES

Notes:

Includes index.

Description based on online resource; title from PDF title page (ebrary, viewed October 6, 2016).

ISBN:

1-63485-872-7