Accounting and valuation standards
Appendix 14 provides guidance to SBICs on accounting policies and procedures, financial reporting to the U.S. Small Business Administration (SBA), and selection of an auditor. It also contains guidelines for independent public accountants engaged to conduct annual audits of SBICs.
Appendix 15 describes the policies and procedures which SBICs must follow in valuing their loans and investments. It also provides the techniques and standards which are generally applicable to such valuations.
Appendix 16 provides for two-digit number designations for major categories under which accounts are listed, and three-digit number designations for individual general ledger accounts.
While regulations provide the rules which govern SBICs, SBA issues Procedures, TechNotes and Policy Letters to provide further clarification on specific areas and special topics. This section lists guidance by topic.
Credit and risk
- Technote 10: SBIC Risk Management (10/2015)
- Technote 16: Guidance Regarding 13 CFR §107.585 Voluntary Decrease in Licensee’s Regulatory Capital for Early Stage SBICs (08/2012)
- Policy Guidance: Buyout of Participating Securities SBICs Policy Letter (01/2011)
- Technote 12: Guidelines Concerning Valuation Issue (08/2007)
- Technote 5: Credit Management Procedures (11/2000)
- Technote 6: Guidelines Concerning In-Kind Distributions of Equity Securities (Participating Securities SBICs only) (11/2000)
Funding the SBIC program
- Instructions for Prepayment of SBIC Pooled Debentures
- Trust Certificate Rates: SBIC Debenture Pools
- Trust Certificate Rates: SBIC Participating Security Pools
- Offering Circulars - Debenture
- Offering Circulars - Participating Security
- SBA Annual Charge
- SBIC Debenture Pools: Prepayment Schedule and Deal Factors
- SBIC Participating Security Pools: Prepayment Schedule and Deal Factors
Investments and transactions
Leverage commitments and draws
Licensing and organizational
- Policy Guidance: Approval Process for Transfers of Limited Partnership Interests (11/2014)
- Technote 17: Determination of SBIC Common Control (02/2013)
- Policy Guidance: Start-Up America Impact Investment SBIC Initiative Policy Update (09/2012)
- Policy Guidance: Additional Fund Request Policy Letter (06/2012)
- Technote 15: Guidelines Concerning the Use of Side Letters and Withdrawal Provisions in SBA’s Model Limited Partnership Agreement (10/2010)
- Technote 14: Fast Track Process for Small Business Investment Companies Seeking a Subsequent License (11/2009)
- Technote 13: Guidelines Concerning Debenture Applicants Structured as a Business Development Company or BDC Subsidiary (03/2009)
- Technote 7a: Guidelines Concerning Allowable Management Expenses for Leveraged SBICs for SBICs that submitted license applications on or after April 1, 2004 (04/2008):
- Technote 7: Guidelines Concerning Allowable Management Expenses for Leveraged SBICs for SBICs that submitted license applications prior to April 1, 2004 (12/2000)
- Technote 4: Reporting Portfolio Valuations (07/2013)
- Technote 2: Electronic Reporting of Annual Financial Statements and Portfolio Financing Reports using Internet Electronic Mail (03/1998)
Contact firstname.lastname@example.org for information on the SBIC web-based reporting system.
Standard Operating Procedures
Policies and procedures used by SBA to administer the program:
Statute and regulations
Regulations provide the implementing rules to govern the SBIC program as authorized by the Small Business Investment Company Act of 1958, as amended. The following provides links to relevant code and regulations on the Government Printing Office’s (GPO) site: