An Introduction to the NASBIC

The National Association of Small Business Investment Companies (NASBIC) is the non-profit association for the Small Business Investment Company (SBIC) industry. The SBIC is a program licensed by the Small Business Administration (SBA) to make capital or long-term loans available to small companies; oftentimes filling a gap for loans in the $250,000 to $5 million range where banks or private equity firms are not able to fulfill. The SBIC is made up of private-equity firms partnering with the US government with the common goal of providing critical capital to American small businesses. By pledging to the SBA that the member SBIC will only make capital available to American small business, the US government returns a favor by providing low-interest government-backed loans.

The NASBIC has been around almost 50 years since its creation through the Small Business Investment Act of 1958, during the Eisenhower administration and is the world’s oldest professional venture capitalist organization. Throughout the organization’s history it has campaigned for necessary legislation and policies that serve in the best interests for growing small businesses and their changing needs during critical times of expansion.

Funding from an SBIC can promote a business as an available opportunity for other equity sources. If an SBIC shows confidence by providing funding, it says a lot about the stability and growth potential for the growing firm. After all, an SBIC only makes long-term investments in growing companies (periods over five years) and understands that it may be years before the financed firm turns a profit.

The best place to start when seeking out an NASBIC member is the web site here. All the information you need can be found there. Of particular interest to the growing business is the entrepreneur center where all NASBIC members are referenced. Businesses seeking to make that initial contact can make searches based on geography, economic sector, investment type, investment size, etc. on this page.

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