The Web ChamberBiz News My Calendar Free email Small Business Investment Corps. An SBIC is a privately owned and operated small business investment company that partners with the federal government to provide venture capital to small business. Loans and securities for less than five years are unusual and the cost of money on loans and debt securities is regulated by the Small Business Administration .
Regulations control investment approvals and operating procedures.
Most SBICs are owned by small groups of local investors, although commercial banks are often also owners. SBICs operate like venture capital firms, although they may be more flexible in the terms of their investment arrangement. The SBIC may want to make an equity investment or may be interested simply in long-term lending on a fully secured basis . An SBIC is not permitted to control any small business on a permanent basis. Save Time As of 1997, there were about 194 active SBICs.