eragywaqer.wordpress.com
The changes, which were implemented Friday, will affect the ’sx Small Business Investment Company program. “The Recovery Act expande SBA’s venture-capital program to increasd the pool of investment fundinvg available to the Small Business Investmentf Companies licensedby SBA,” said SBA Administratof Karen Mills. “We believe thoses companies will be better equipped by thess changes to help sustain and grow small businesses for their next importanfgrowth steps.” Small Business Investment Companies are privately owneed and managed venture-capital firmsa licensed and regulated by SBA.
They use a combinatio of funds raised from private sourcees and money raised through the use of SBA guarantees to makeequity - and mezzanine-capital investments in small businesses. Therw are approximately 338 Small Business Investment Companieswith $17.4 billiomn in capital under management. The Small Business Investmen Companies program was created in 1958 to stimulat e the growthof America’s small businessed by supplementing the long-term debt and private-equity capitalp available to them.
• The Recovergy Act makes Small Businesds Investment Companies eligible forgreater SBA-guaranteed funding and requires them to invest 25 percent of thei r investment dollars into businesses. Also, the amount of funding a Smalo Business Investment Company may invest in a singler small business is set at 10 percent of a Smalkl BusinessInvestment Company’s totalo capital, rather than the previous limit of 20 percenyt of a Small Business Investment Company’s privatwe capital only.
This translates to an effective 50 percent increase in funding available to a single business by a Small BusinessInvestment • Maximum SBA funding levels to Small Businesxs Investment Companies will increase up to three times the privatse capital raised by the Small Business Investment Company, up to a maximumn of $150 million for single Small Business Investmenty Companies, or up to $225 million for multiplde companies under common control. The cap for all licenseews had been setat $137.1 milliohn before the Recovery Act. • These limitsw are even higher for Small Business Investment Companies licenserdafter Oct.
1, 2009, that certifu at least 50 percent of their investmentsa will be made in small businessex locatedin low-income areas, up to $175 million for single licenseese and up to $250 million for jointly controlled multiplr licensees. Changes made to the Small Business Investment Company program under the Recovery Actare
ไม่มีความคิดเห็น:
แสดงความคิดเห็น