SBIC Leverage Pricing Determined
March 19, 2018
$1,086,275,000 billion in SBIC debentures priced
March 16, 2018, Washington, D.C. – The Small Business Investor Alliance (SBIA), the leading association for lower middle market private equity funds and investors, today announced that $1.086 billion of Small Business Investment Companies (SBIC) debentures were priced at an interest rate 0f 3.187%. This is the new base rate applied to any SBIC leverage drawn since the last pooling in September. SBIC debentures are non-amortizing, fixed rate notes. The base rate does not include a number of fees that SBA charges SBICs on top of the base rate. The previous pool of debentures priced at 2.518% in September.
SBIC funds have grown significantly since the financial crisis, filling critical capital access gaps in the lower middle market. SBICs continue to perform very well and the leverage continues to operate with a zero subsidy rate from the government.
“The SBIC program is a smart, market-based program that enables billions of dollars of private investment into growing small businesses. Thanks to SBICs thousands of businesses were able to access the capital needed to grow, innovate, and increase employment.” said Brett Palmer, President of the SBIA.
About the Small Business Investor Alliance (SBIA)
The Small Business Investor Alliance (SBIA) is the premier organization of lower middle market private equity funds and investors. SBIA works on behalf of its members as a tireless advocate for policies that promote competitive markets and robust domestic investment for growing small businesses. SBIA has been playing a pivotal role in promoting the growth and vitality of the private equity industry for over 50 years. For more information, visit www.SBIA.org or call (202) 628-5055.