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Small Business Investment Company Financing.

SBA-licensed private investment funds provide debt, equity, or combined growth capital to small businesses that fit each fund's strategy.

Offered bySBA Office of Investment and Innovationverified 2026-07-10

Overview

What it does.

SBA does not invest directly in the business. A Chester company must identify an SBIC actively investing in its geography, industry, stage, and deal size, then pursue the fund's private investment process.

Best for: Established, growth-oriented firms seeking larger debt or equity investments and willing to meet an investor's return and governance expectations.

Eligibility

Who and what may qualify.

Eligible applicants

  • Qualifying U.S. small businesses in industries and stages targeted by an active licensed SBIC

Applicants excluded by the source

  • Businesses in excluded industries such as passive real estate or lending
  • Businesses that do not fit any SBIC's investment strategy

Eligible uses

  • Growth capital
  • Business expansion
  • Debt financing
  • Equity investment
  • Combined debt and equity financing

Uses excluded by the source

  • Farmland acquisition
  • Passive real-estate investment
  • Financing businesses and other excluded industries

Application

How to start.

  1. Search the official SBIC directory for active funds
  2. Compare each fund's industry, geography, stage, and financing profile
  3. Prepare an investor-ready business plan and contact suitable SBICs directly

Timing: Each SBIC follows its own investment schedule.

Planning notes

Limits to account for.

  • No SBIC is required to invest
  • Most funds have narrow investment criteria
  • Equity financing involves ownership dilution and negotiated control rights

Can be part of a broader capital stack, subject to investor, lender, and SBA restrictions.

Evidence

Official sources.