SBIA Update: September 27, 2019

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 Financial Services Committee Hearing: “Oversight of the Securities and Exchange Commission: Wall Street’s Cop on the Beat.”

On September 24th, the House Financial Services Committee held a hearing titled, “Oversight of the Securities and Exchange Commission: Wall Street’s Cop on the Beat” with all 5 SEC Commissioners. Prior to this hearing, the last time the full Commission testified before Congress was in 2007. Congressman Brad Sherman (D-CA) and Congressman Andy Barr (R-KY) both asked questions regarding an exemption for BDCs from the acquired fund fees and expenses (“AFFE”) disclosure requirement.

Watch the Archived Hearing >


Follow-Up Letter on SBIC Program

On September 13th, SBIA sent a follow-up letter to Chairman Marco Rubio (R-FL) and Ranking Member Ben Cardin (D-MD) on the Senate Small Business Committee’s June 26th hearing entitled, “Reauthorization of SBA’s Small Business Investment Company Program.” The letter serves as an update on the SBIC program since the hearing and highlights some of the areas of concern that have seen no discernible improvement.

Read The Comment Letter >


SBIA Comments on the SEC Concept Release on Harmonization of Securities Offering Exemptions

On June 18th, the SEC released a Concept Release on Harmonization of Securities Offering Exemption and requested public comment on several exemptions from registration under the Securities Act of 1933 and a change to the definition of accredited investor. The SBIA will file comments on behalf of its members in response to the accredited investor proposals, Reg A filings, and will include a recommendation for an AFFE exemption for BDCs.

Read The Comment Letter >


Member Deals 

Modern Bank

Modern Bank funds investment in Hippodrome Services Group

Modern Bank provided Senior Secured Credit Facilities to fund the investment in Hippodrome Services Group by Surge Private Equity. Founded in 1996, Hippodrome provides outsourced laundry and dry-cleaning services to 4 and 5 star hotels in Manhattan.


Plexus Capital

Plexus invests in Sunrise Landscaping

Plexus Capital closed an investment in Sunrise Landscaping. Sunrise provides a wide range of landscape installation and maintenance services throughout central Florida.


OFS Capital Management

OFS Capital leads debt financing of Milrose Consultants

OFS Capital Management announced that it, along with affiliated investment funds, has led the debt financing of Milrose Consultants in support of Southfield Capital Partners’ investment in the Company.

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

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