• 2008 Fiscal Year End Numbers Indicate Growth among Debenture SBICs
  • November 2, 2008 | Authors: Mark A. Kromkowski; Geoffrey C. Cockrell; Michael P. Lusk
  • Law Firm: McGuireWoods LLP - Chicago Office
  • In 2008 Small Business Investment Companies (SBICs) organized as Debenture SBICs continued to grow. On October 1, 2008, the Data Management Branch of the Small Business Administration’s (SBA) Investment Division released its fiscal year end data for the SBIC Program. The data showed that despite the current uncertainties in the financial markets, the Debenture SBIC Program still grew significantly.

    During 2008, 1,905 small businesses received financing through the SBIC Program, including 1,890 financings by SBICs Debenture Licensees. These financings represent a 12.9% increase in volume over 2007 fiscal year financing volume. The total dollars invested increased 12.4% over 2007 total dollars invested to nearly $1.44 billion with the average SBIC Debenture Licensees being $759,943.

    The SBA has 129 active Debenture SBIC Licensees, which have raised more than $3.9 billion in private capital. The amount of the SBA’s outstanding leverage increased, growing approximately 22.5% to nearly $2.6 billion from $2.1 billion in fiscal year 2007. The amount of Total Capital Resources and Total Committed Capital Resources increased, with 13.6% and 15.6% respectively. At the SBA's 2008 fiscal year end, Total Capital Resources closed at $5.79 billion, while Total Committed Capital Resources closed at $6.99 billion.