Click here to close now.

SYS-CON MEDIA Authors: Ian Goldsmith, Ed Featherston, Elizabeth White, Pat Romanski, Liz McMillan

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
Want to enable self-service provisioning of application environments in minutes that mirror production? Can you automatically provide rich data with code-level detail back to the developers when issues occur in production? In his session at DevOps Summit, David Tesar, Microsoft Technical Evangelist on Microsoft Azure and DevOps, will discuss how to accomplish this and more utilizing technologies such as Microsoft Azure, Visual Studio online, and Application Insights in this demo-heavy session.
DevOps Summit, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developmen...
The 5th International DevOps Summit, co-located with 17th International Cloud Expo – being held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the...
SYS-CON Events announced today that MetraTech, now part of Ericsson, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Ericsson is the driving force behind the Networked Society- a world leader in communications infrastructure, software and services. Some 40% of the world’s mobile traffic runs through networks Ericsson has supplied, serving more than 2.5 billion subscribers.
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding bu...
Over the years, a variety of methodologies have emerged in order to overcome the challenges related to project constraints. The successful use of each methodology seems highly context-dependent. However, communication seems to be the common denominator of the many challenges that project management methodologies intend to resolve. In this respect, Information and Communication Technologies (ICTs) can be viewed as powerful tools for managing projects. Few research papers have focused on the way...
As the world moves from DevOps to NoOps, application deployment to the cloud ought to become a lot simpler. However, applications have been architected with a much tighter coupling than it needs to be which makes deployment in different environments and migration between them harder. The microservices architecture, which is the basis of many new age distributed systems such as OpenStack, Netflix and so on is at the heart of CloudFoundry – a complete developer-oriented Platform as a Service (PaaS...
In high-production environments where release cycles are measured in hours or minutes — not days or weeks — there's little room for mistakes and no room for confusion. Everyone has to understand what's happening, in real time, and have the means to do whatever is necessary to keep applications up and running optimally. DevOps is a high-stakes world, but done well, it delivers the agility and performance to significantly impact business competitiveness.
As cloud gives an opportunity to businesses to buy services externally – how is cloud impacting your customers? In his General Session at 15th Cloud Expo, Fabio Gori, Director of Worldwide Cloud Marketing at Cisco, provided answers to big questions: Do you see hybrid cloud as where the world is going? What benefits does it bring? And how does Cisco connect all of these clouds? He also discussed Intercloud and Cisco’s investment on it.
17th Cloud Expo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises a...
There is no question that the cloud is where businesses want to host data. Until recently hypervisor virtualization was the most widely used method in cloud computing. Recently virtual containers have been gaining in popularity, and for good reason. In the debate between virtual machines and containers, the latter have been seen as the new kid on the block – and like other emerging technology have had some initial shortcomings. However, the container space has evolved drastically since coming on...
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover ...
Enterprises are fast realizing the importance of integrating SaaS/Cloud applications, API and on-premises data and processes, to unleash hidden value. This webinar explores how managers can use a Microservice-centric approach to aggressively tackle the unexpected new integration challenges posed by proliferation of cloud, mobile, social and big data projects. Industry analyst and SOA expert Jason Bloomberg will strip away the hype from microservices, and clearly identify their advantages and d...
In her General Session at 15th Cloud Expo, Anne Plese, Senior Consultant, Cloud Product Marketing, at Verizon Enterprise, focused on finding the right mix of renting vs. buying Oracle capacity to scale to meet business demands, and offer validated Oracle database TCO models for Oracle development and testing environments. Anne Plese is a marketing and technology enthusiast/realist with over 19+ years in high tech. At Verizon Enterprise, she focuses on driving growth for the Verizon Cloud platfo...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading in...