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Small Business Investment Companies (SBICs)

Written by the Fiveable Content Team • Last updated September 2025
Written by the Fiveable Content Team • Last updated September 2025

Definition

Small Business Investment Companies (SBICs) are privately owned investment funds that are licensed and regulated by the Small Business Administration (SBA), designed to provide venture capital and financing to small businesses. They bridge the gap between high-risk, potentially high-return small businesses seeking funding, and investors seeking profitable opportunities.