In its 54 years of existence the program has helped over 110,000 small businesses in the U.S. with $63 billion in investment capital.
San Francisco, CA (PRWEB) December 20, 2012
While the rest of the government talks about cutting spending and reduced budgets, the Small Business Administration proves that public-private partnerships can work superbly to support small businesses across America. The recently released Small Business Investment Company (SBIC) Annual Report shows how this one SBA sponsored program has created tens of thousands of jobs by funneling billions of dollars into small businesses.
Terry Robinson, President of Sunovis, said, "This kind of program is needed and by all means a success. Our friends at the SBA and business consultants verify that cooperation of private equity and public programs can make great strides. Let's not forget that small businesses is the engine of growth in the U.S. and a big driver of jobs."
The SBA created the SBIC program in 1958 as a means to stimulate small business growth in America. The program works by making private equity capital available to small businesses as well as supplementing sources of long term debt. In its 54 years of existence the program has helped over 110,000 small businesses in the U.S. with $63 billion in investment capital.
"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.
One critical component of the SBIC program’s success has been the attraction of private capital to the funds. The Annual Report shows strong financial returns for private equity investors, leading to increased investment capital from the private sector. In addition, the SBA has streamlined the program so that it now takes just 5.4 months to get an SBIC fund licensed versus 14.6 months in 2009.
The Annual Report shows that the SBIC debenture program has grown by leaps and bounds, with 2012 being the third consecutive record breaking year. The program provided over $3 billion in capital to more than 1,000 small businesses in 2012. This is a 17 percent increase over 2011 and an 83 percent increase over 2010. The SBA estimates that this capital has created or supported more than 65,000 jobs.
30 new SBIC funds were licensed in 2012, bringing the total number of funds to over 300, providing more than $18 billion in capital.
With the obvious success of the SBIC program, the SBA has plans to continue expanding this successful public-private partnership program with the goal of helping even more small businesses across America.
About Sunovis Financial
Every small business is important to local communities and even more important in rebuilding the American economy. Today more than ever, small businesses need capital and assistance to thrive, and that is what Sunovis is focused on.