Source - https://www.investopedia.com/terms/s/smallbusinessinvestmentcompanysbic.asp

TL;DR - SBICs are an avenue for small businesses to secure capital.

Helpfulness - 2

Tags - SBIC, debenture, venture capital, SBA

Questions answered:

• What is an SBIC?
• How do SBICs finance businesses?
• What is a debenture?

Summary:

• SBICs borrow from the government; Small Business Administration matches investments (2 to 1 rate)
• The SBA provides SBICs with a set amount of leverage for a set amount of time.
• SBICs usually focuses on investments in the 100K-250k range.

Follow up links:

• Small Business Administration, https://www.investopedia.com/terms/s/small-business-administration.asp
• Debenture, https://www.investopedia.com/terms/d/debenture.asp