SBA Provides Record $1.59 Billion

November 26, 2010

Financing from the Small Business Administration set records last year. Monies distributed through the agency's growth capital program grew 23% to reach $1.59 billion in fiscal year 2010, which ended on September 30, 2010.

The total - spurred by administrative changes mandated under the American Recovery and Reinvestment Act of 2009 - was the highest in the 50-year history of the SBA's Small Business Investment Company (SBIC) debenture program, according to SBA Administrator Karen Mills.

"At a time when access to capital was tight, including from the traditional sources for growth capital, SBA helped fill some of that gap with a record amount of financing through our SBIC program," Mills said."Our efforts to strengthen our program efficiency and increase funding available through the SBIC program has provided another critical tool to help...small businesses get the capital they need and drive economic growth."

SBICs are privately-owned and managed investment firms that are licensed and regulated by the SBA. They use a combination of funds raised through private sources and money raised through the use of SBA guarantees. Since being created, in 1958, the SBIC has invested nearly $56 Billion in more than 100,000 American small businesses.

Changes instituted in 2010 also made way for the agency to add 21 new SBIC licensees, and radically reduce the time it takes to process new SBIC licenses.

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