December 10, 2009 12:00 PM - 1:30 PM EDT
There’s never been a better time to apply for SBIC funding. The Stimulus Bill increased the maximum amount of combined SBIC leverage to $225 million for affiliated funds, up from $137 million previously. Single funds can secure up to $150 million at less than 7 percent interest. Altogether, some $3 billion is allocated for the SBIC program this year, available not just to smaller and first-time funds, but also to veteran venture capital and buyout firms and a growing number of debt providers.
But applications are competitive, and you’ll need to learn all the ins and outs of the process to make sure you get your fair share of dollars. To help you chart your course, Thomson Reuters, publisher of Venture Capital Journal and Buyouts Magazine, plans to host a 90-Webinar featuring an expert panel of speakers, including a general partner of an SBIC-funded private equity firm, the CEO of a major regional debt fund that recently completed the SBIC application process, and two attorneys with decades of experience helping firms navigate the funding process.
During this valuable program you’ll learn the answer to such questions as the following:
- What changes have been made to the SBIC program this year, and how do they impact the application process, and the kinds of investments that can be made using SBIC money?
- How competitive is the process of obtaining the SBA match? How has the recession impacted competition for funds allocated under the program?
- How much time and effort is involved in the application effort for first-time applicants? What sorts of resources can or should be outsourced? Does the process get easier for second-time applicants?
- How can the program be used to create a drop-down fund, in which a general partner allocates existing capital commitments in other funds to a separate SBIC fund in order to obtain the SBA match?
- How do current interest rates for SBIC funding compare to historical norms, and what factors would contribute to a further drop, or an increase, in prevailing rates?
- How does the stimulus package affect prospects for SBIC funding? What provisions enabled by the stimulus package are set to expire, and when?
for more information.