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Program Assessment


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Small Business Investment Companies Debentures

SBIC Debentures assist privately owned and managed investment funds, licensed and regulated by SBA, to make debt and/or equity investments in qualifying small businesses. This credit program helps stimulate and supplement the flow of private equity capital and long term loans to small business concerns.


What This Rating Means

Moderately Effective

In general, a program rated Moderately Effective has set ambitious goals and is well-managed. Moderately Effective programs likely need to improve their efficiency or address other problems in the programs' design or management in order to achieve better results.
  • The program is successful in extending financial assistance to small businesses. In the last two years, SBIC Debentures have made $3.3 billion in financing loans to small businesses looking for expansion, later stage and bridge type financing.
  • The program maintains strong financial management practices and uses financial performance data effectively to analyze trends and assess risk. The program tracks cost effectiveness and utilizes rigorous financial practices with regard to Licensing, Operations, Funding & Administration, and Liquidations. SBA continues to respond to IG reports concerning management and programmatic challenges.
  • The program should attempt to better address and define that it serves a specific existing need. Although SBIC Debentures perform financing across a more dispersed geographic area and across more industries than private venture capital, SBA should develop measures to evaluate and ensure the effectiveness of the program in addressing potential market failures or opportunity gaps.

Improvement Plan

About Improvement Plans

We are taking the following actions to improve the performance of the program:

  • Enhancing financial monitoring systems to improve re-estimates and guarantee continuance of zero subsidy.
  • Seeking to improve response time in operations and licensing in order to expedite approvals necessary for SBICs.

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