by David Gerogosian, PEF Services

On December 18, 2012, The House of Representatives passed a bill to allow the Small Business Administration (SBA) to provide to Small Business Investment Companies (SBICs) up to $350 MM in leverage.  Previously, the SBA was limited to providing up to $225 MM in leverage.  Due to the structure of the program, SBICs need multiple licenses to reach the maximum leverage.  The SBIC Program was created to help small-businesses gains access to capital by supplementing the flow of private-equity capital and long-term loan funds.  The Bill was passed with strong bi-partisan support.