Welcome!

News Feed Item

SBA Highlights Model Public-Private Partnership Program in SBIC Annual Report

WASHINGTON, Dec. 7, 2012 /PRNewswire-USNewswire/ -- In an era of budget slashing and belt tightening, the U.S. Small Business Administration has efficiently harnessed a public-private partnership through its Small Business Investment Company (SBIC) program, breaking records by channeling billions of dollars into the hands of small businesses and creating thousands of jobs.  This and other success stories are highlighted in the SBIC Annual Report, which was released today and can be read here

(Logo: http://photos.prnewswire.com/prnh/20110909/DC65875LOGO)

"Even with the economy still in recovery mode, this program serves as a model of a zero-subsidy, public-private partnership that has been extraordinarily successful for America's small businesses," said SBA Administrator Karen Mills.  "This report, part of the agency's ongoing efforts to deliver transparency, accountability and robust data collection in its programs, highlights the success and progress SBA has made over the last four years to streamline, simplify and strengthen its core programs."

In addition to SBA's efforts to streamline and simplify this program, critical to its success has been attracting private capital to the funds.  The Annual Report analyzes in detail the financial returns to private investors participating in the program and finds that returns compare very favorably to the private equity industry as a whole, demonstrating that private investors can significantly improve their return by accessing SBA leverage.

At the same time, enhancements to the program have attracted a more diverse array of top-tier investment managers to the funds, and SBA has expanded the program with new funds targeting promising companies in economically distressed regions and gaps in early stage investment. These new platforms are attracting institutional investors, pension funds, and multinational corporations, allowing the agency to expand investment and financing to more innovative small businesses outside of traditional start-up and investment hubs.

The report also highlights the records set by the SBIC debenture program.  In Fiscal Year 2012, the SBIC program had its third consecutive record-breaking year. SBICs provided more than $3 billion in growth capital to over 1,000 small businesses, a 17 percent increase from FY 2011 and an 83 percent increase from FY 2010.  SBA estimates these financings created or sustained over 65,000 jobs.

SBA also licensed 30 new funds in FY 2012, including a record 27 Debenture SBICs, bringing the total number of SBA-licensed funds to more than 300 SBIC-licensed funds, with more than $18 billion in capital.

The report also features the 2012 Small Business Investment Companies of the Year and stories of successful small businesses that benefited from SBIC investments.  The featured SBICs are: Petra Capital Partners (Nashville, TN), Cephas Capital Partners (Pittsford, NY), Main Street Capital Corp. (Houston, TX) and Diamond State Ventures (Little Rock, AR).

Successful small businesses that benefited from SBIC investment in FY 2012 include: JSI Fixtures (Milo, ME), Hoffman Media, LLC (Birmingham, AL), Weber Knapp (Jamestown, NY), CB Restaurants, INC (Milburn, NJ), Gemcor (West Seneca, NY), Security Innovation (Wilmington, MA), Hawke Aerospace (Morgantown, PA), Custom Marketing Co. (Fargo, ND) and Center Rock (Berlin, PA).

SBA plans to continue to build on the success of this public-private partnership to reach more entrepreneurs in more regions and more industries across the country.

The SBIC program was created in 1958 to stimulate the growth of America's small businesses by supplementing the long-term debt and private-equity capital available to them.  Since then, the SBIC program has helped fill these gaps and has invested approximately $63 billion in more than 110,000 small businesses in the United States. 

SBICs are privately-owned and managed investment firms that are licensed and regulated by SBA. SBICs use a combination of funds raised from private sources and money raised through the use of SBA guarantees to make equity and mezzanine capital investments in small businesses.

For more information about the SBA's SBIC program, and to contact its Investment Division, go to www.sba.gov/INV.

Contact: Dennis Byrne (202) 205-6567

Release Number: 12-52

Internet Address: http://www.sba.gov/news

SOURCE U.S. Small Business Administration

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes ho...
SYS-CON Events announced today that AppNeta, the leader in performance insight for business-critical web applications, will exhibit and present at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. AppNeta is the only application performance monitoring (APM) company to provide solutions for all applications – applications you develop internally, business-critical SaaS applications you use and the networks that deli...
Father business cycles and digital consumers are forcing enterprises to respond faster to customer needs and competitive demands. Successful integration of DevOps and Agile development will be key for business success in today’s digital economy. In his session at DevOps Summit, Pradeep Prabhu, Co-Founder & CEO of Cloudmunch, covered the critical practices that enterprises should consider to seamlessly integrate Agile and DevOps processes, barriers to implementing this in the enterprise, and pr...
Eighty percent of a data scientist’s time is spent gathering and cleaning up data, and 80% of all data is unstructured and almost never analyzed. Cognitive computing, in combination with Big Data, is changing the equation by creating data reservoirs and using natural language processing to enable analysis of unstructured data sources. This is impacting every aspect of the analytics profession from how data is mined (and by whom) to how it is delivered. This is not some futuristic vision: it's ha...
Let’s face it, embracing new storage technologies, capabilities and upgrading to new hardware often adds complexity and increases costs. In his session at 18th Cloud Expo, Seth Oxenhorn, Vice President of Business Development & Alliances at FalconStor, will discuss how a truly heterogeneous software-defined storage approach can add value to legacy platforms and heterogeneous environments. The result reduces complexity, significantly lowers cost, and provides IT organizations with improved effi...
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts...
Data-as-a-Service is the complete package for the transformation of raw data into meaningful data assets and the delivery of those data assets. In her session at 18th Cloud Expo, Lakshmi Randall, an industry expert, analyst and strategist, will address: What is DaaS (Data-as-a-Service)? Challenges addressed by DaaS Vendors that are enabling DaaS Architecture options for DaaS
One of the bewildering things about DevOps is integrating the massive toolchain including the dozens of new tools that seem to crop up every year. Part of DevOps is Continuous Delivery and having a complex toolchain can add additional integration and setup to your developer environment. In his session at @DevOpsSummit at 18th Cloud Expo, Miko Matsumura, Chief Marketing Officer of Gradle Inc., will discuss which tools to use in a developer stack, how to provision the toolchain to minimize onboa...
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
It's easy to assume that your app will run on a fast and reliable network. The reality for your app's users, though, is often a slow, unreliable network with spotty coverage. What happens when the network doesn't work, or when the device is in airplane mode? You get unhappy, frustrated users. An offline-first app is an app that works, without error, when there is no network connection.
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, will provide an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data profes...
The principles behind DevOps are not new - for decades people have been automating system administration and decreasing the time to deploy apps and perform other management tasks. However, only recently did we see the tools and the will necessary to share the benefits and power of automation with a wider circle of people. In his session at DevOps Summit, Bernard Sanders, Chief Technology Officer at CloudBolt Software, explored the latest tools including Puppet, Chef, Docker, and CMPs needed to...
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
Advances in technology and ubiquitous connectivity have made the utilization of a dispersed workforce more common. Whether that remote team is located across the street or country, management styles/ approaches will have to be adjusted to accommodate this new dynamic. In his session at 17th Cloud Expo, Sagi Brody, Chief Technology Officer at Webair Internet Development Inc., focused on the challenges of managing remote teams, providing real-world examples that demonstrate what works and what do...