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The Small Business Investment Company Program Annual Report Shows Record Capital for Small Businesses

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The Small Business Investment Company Program Annual Report Shows Record Capital for Small Businesses

By esrobins
Published: December 7, 2012 Updated: December 7, 2012

 

As head of The Investment Division of the U.S. Small Business Administration, I am proud to present the results of the Small Business Investment Company Program for Fiscal Year 2012 in our Annual Report . We have achieved record success for a third year in a row, providing the capital small businesses need to fuel their growth and create jobs.  This Annual Report reflects our commitment to the continued growth of the SBIC Program.

With the economy still in recovery, SBA’s mission of supporting small businesses and the Americans they employ has never been more critical. Small businesses are responsible for creating over 60% of the country’s net new private sector jobs each year. Yet despite their importance to the health of the overall economy, many small businesses struggle to access the capital they need to expand operations, build new facilities and hire new staff.

In FY 2012, the SBIC Program channeled more than $3 billion to over 1,000 small businesses. And we estimate these financings created or sustained over 65,000 jobs. We achieved these results at zero cost to the taxpayers, thanks to the public-private partnership at the program’s core.  Even in an era of tightening budgets, SBA is able to efficiently harness the talent of professional investment managers to expand the pool of capital available at the smaller-end of the market.

Critical to the success of the program is attracting private capital to the funds.  The Annual Report analyzes in detail the financial returns to private investors participating in the program and found that these returns compare very favorably to the private equity industry as a whole, and demonstrate that private investors can significantly improve their return by accessing SBA leverage.

As we look to the future, we are investing heavily in improved data management systems, both to enhance our own underwriting processes, but also to provide current and future program participants additional data for more informed investment decisions.

In line with the SBA’s agency-wide commitment to transparency in government, the report was prepared with U.S. taxpayers in mind. We hope all of our stakeholders find this SBIC Program Annual Report useful in evaluating the program’s past, but also in helping to shape its future.

 

About the Author:

Sean Greene
Sean Greene is the Associate Administrator for Investment and the Special Advisor for Innovation at the U.S. Small Business Administration.

Comments:

So many congratulations for the record success that you have achieved. SBA’s mission of providing capital and supporting small businesses has certainly done good to many companies. Hope you guys would continue with this. Thanks for all your efforts.
This shows we are moving in the right direction. These loans were able to save jobs and keep these businesses open.
Dear Sean Greene, Thanks for this article. I had applied for an SBA loan and have been providing paperwork after paperwork for 6 months now with no process, progress or end results. I request for an appointment with you please to discuss my situation. Ranjani Mohana   This post was edited to remove a link. Please review our Community Best Practices for more information about how best to participate in our online discussions. Thank you.
Hi, SBA doesn't loan money directly to small business owners; instead, SBA can help facilitate a loan for you with a third party lender, guarantee a bond, or help you find venture capital. Here's what you need to know about SBA's role in the loan process.
Hello Sean, Thank you for posting this article. As a Small local business this is valuble information.
quite useful

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