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Michigan Small Business Investment Companies
Equity funding is one of several alternatives to traditional bank financing available to smaller businesses. The Small Business Investment Companies program (SBIC) fills the gap between the availability of venture capital and the needs of small businesses that are either starting or growing. Licensed and regulated by SBA, SBICs are privately owned and managed investment firms that make capital available to small businesses through investments or loans. They use their own funds plus funds obtained at favorable rates with SBA guaranties and/or selling their preferred stock to SBA. SBICs are for-profit firms whose incentive is to share in the success of a small business. In addition to equity capital and long-term loans, SBICs provide debt-equity investments and management assistance. The SBIC program provides funding to all types of manufacturing and service industries. Some investment companies specialize in certain fields, while others seek out small businesses with new products or services because of the strong growth potential. Most, however, consider a wide variety of investment opportunities. There are two types of SBICs, the “regular” SBICs and SSBICs-Specialized Small Business Investment Companies, targeted toward the need of entrepreneurs who have been denied the opportunity to own and operate a business because of social or economic disadvantage. For more information, contact the Michigan District Office at (313) 226-6075 or call any of these SBICs or SSBICs.
EDF Ventures, LP
Michigan Content Comments:
michigan@sba.gov
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