Small Business Investment Company (SBIC)

An SBIC is a private lending organization certified by the SBA to provide loans to small businesses. These entities can borrow from the federal government at set interest rates to re-lend to small businesses. To qualify, they must meet SBA requirements. The SBA acts as a guarantor for loans, reducing risk and allowing SBICs to offer lower interest rates. SBICs typically lend between $100,000 and $250,000, adjusting for inflation and business needs.

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