SBIA Update: February 14, 2020

SBIA Update is a way to stay up-to-date on the latest industry news, SBIA member information, and policies that impact the lower middle market.  Below are a few articles featured in this edition of SBIA Update. For the full news update, please refer to the SBIA Update email in your inbox.

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Legislative & Regulatory Update

House Ways and Means Private Equity Transparency Legislation

On February 12, the House Ways and Means Committee passed H.R. 5825, the Transparency in Healthcare Investments Act of 2020. This bill requires public disclosures by investing partnerships of investments in healthcare industries. It appears House Democrats are trying to force into the public arena otherwise non-public business confidential information. Please see the attached outline.

SBIA sent a letter to the Committee opposing further action on the legislation as it would create a strong disincentive for entrepreneurs providing medical care to seek out growth capital from private equity firms because the bill would force public disclosure of business confidential information. The bill has very little chance of passing a Republican led Senate but this is something SBIA will continue to monitor.

Read the SBIA letter >

See H.R. 5825 >


Filling the U.S. Small Business Funding Gap: An Analysis by the Kenan Institute

A recent study by the Kenan Institute shows that SBICs tend to provide more geographically dispersed funding and a higher percentage of funding to women-owned businesses. However, because SBICs are only a small part of the broader funding ecosystem, pronounced geographic and demographic differences in funding remain. This suggests the need to further scale the SBIC program in order to make more funds available to fill small business funding gaps.

Find the full report here >


SBIA Announces Online SBIC Regulatory Class

Congress created the Small Business Investment Company (SBIC) program in 1958 to encourage the flow of capital to domestic small businesses and small enterprises across the United States. The U.S. Small Business Administration (SBA), an independent federal agency, administers the SBIC program.

The Small Business Investor Alliance (SBIA) has developed an online course to familiarize the SBIC applicants with the framework, process, and critical regulatory components of investing within the SBIC program.

What is the Small Business Investment Companies (SBICs) Regulations Class?
SBIA designed this online program to give private equity professionals and others interested in the SBIC program a better understanding about its purpose and operation and its federal regulatory framework. The online course provides:

  • Easy to Follow Layout
  • Six Comprehensive Sections
  • Easy to Use Platform
  • Free Entry to Enroll

Does this replace the past in-person SBIC Regulatory Class?
No. SBIA’s online training class is not an authorized alternative to an SBA-led program.

Up until 2019, the SBA’s Office of Investment and Innovation conducted in-person SBIC training classes in partnership with the SBIA. Completion of the SBIC regulations class was a prerequisite element for SBIC principals as part of the SBIC licensing process.

The SBA has not hosted an SBIC training class since November 2018 as it reevaluates its education and training offerings. But, during this period, the SBA has not declined to issue an SBIC license or guaranteed leverage commitment since SBIC applicants are unable to attend because the class has temporarily been halted.

Enroll Now >


SBIA Files Comments in SEC’s Advertisement and Solicitations Rulemaking

On February 7, the SBIA filed comments with the U.S. Securities and Exchange Commission regarding proposed amendments under the Investment Advisors Act of 1940 to rules that prohibit certain advertisements by investment advisors and payments to solicitors. The SEC rulemaking refreshed these rules that were first instituted in 1961 and 1979, respectively. The SBIA letter was generally supportive, but noted that investors and regulated entities alike could benefit from additional clarity in some of the proposed amendments and, in specific areas, removal of certain proposed provisions.

Read the SBIA Letter >


Member Deals 

Corbel Capital Partners

Corbel Capital Partners Announces Investment in Noble Roman’s

Noble Roman’s is a leading food-service franchisor in the Midwest. Headquartered in Indiana, the Company is a franchisor of a non-traditional concept located within modern convenience stores, entertainment facilities, and hospitals; and a traditional brick and mortar fast-casual-restaurant concept. As a result of ongoing growth initiatives and pending debt maturities, the management at Noble Roman’s was seeking a value-added and flexible capital partner to support the next phase of growth in building out new company-owned restaurants and related franchising efforts. Corbel was able to provide that solution by structuring its capital to address refinancing, liquidity, and growth. For more information, please visit

The Riverside Company

Riverside Company Arm Adds LMG Holdings, Inc. to Portfolio

The value-based private equity arm of The Riverside Company has led an investment in LMG Holdings, Inc. (LMG), a leading provider of ignition interlock devices (IIDs) used to help prevent drunk driving. IIDs are court-mandated and allow offenders to retain driving privileges while greatly reducing incidences of driving under the influence. LMG also offers regulatory-compliant portable alcohol monitoring solutions to serve the in-home and portable monitoring sector.


SBIA is the voice and advocate for the lower middle market. Go to to learn more about the Small Business Investor Alliance.

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