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Capital sources: Small business investment companies

Small Business BasicsSmall business investment companies were developed as a way for government to bridge the gap between venture capitalists and small business. SBICs are privately owned companies licensed by the Small Business Administration to supply equity capital, long­term loans and management assistance to qualifying small businesses.

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SBICs are profit­seeking organizations that invest in a broad range of industries. In choosing an SBIC, consider the types of investments it makes, how much money it has available for investment and how much might be available in the future. You should also consider whether the SBIC offers management services.

 

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