A small business investment company (SBIC) is a type of privately-owned investment company that is licensed by the Small Business Administration (SBA). Small business investment companies supply small companies with both equity and debt financing.

What is SBIC?

An SBIC, or Small Business Investment Company, is a privately owned and managed investment fund that's licensed and regulated by SBA. An SBIC uses its own capital, plus funds borrowed with an SBA guarantee, to make equity and debt investments in qualifying small businesses.

What is an SBIC loan?

An SBIC is a privately owned company that's licensed and regulated by the SBA. SBICs invest in small businesses in the form of debt and equity. ... Those SBICs then use their private funds, along with SBA-guaranteed funding, to invest in small businesses.