The SBIC Program
Why banks may want to consider investing in an SBIC fund.
What is the SBIC Program?
The SBIC (Small Business Investment Company) program has been helping small businesses around the country access the capital they need to grow for more than 60 years. By providing capital, SBIC funds help stimulate job creation, innovation, and economic growth. While most SBIC funds are traditional debt investors, a handful are VC firms and represent a unique opportunity for community banks to gain exposure to venture capital.
The Benefits of SBIC Investing
Generate attractive risk-adjusted returns
Cultivate new business opportunities
Invest with confidence
Earn CRA credits
What Moneta's Investors Are Saying
President and CEO, River City Bank
EVP and CFO, Tri Counties Bank
“When evaluating an investment, Tri Counties Bank performs a detailed financial and underwriting analysis which incorporates the credibility that the SBIC certification process provides. We know that the SBA has heavily scrutinized the fund’s track record and managers as a part of the certification process. In addition, this underwriting process includes a deep dive on the past performance and credibility of the management team.”
President and CEO, Five Star Bank
“As a regional bank, Five Star Bank believes in investing in an SBIC fund. SBICs that invest in venture-backed companies give us exposure to these businesses as they explore alternative financial products, such as venture debt, which further diversifies our investment strategy.”
Learn more about SBIC investing
The SBIC program overall
Description of the Small Business Investment Company Program Participation by Unleveraged FundsRead more
Why banks might invest in SBICs
Small Business Investment Companies: An Investment Option for BanksRead more
The case for SBIC investing
An Interview with River City Bank President and CEO Steve Fleming: How Community Banks can Invest in VC FundsRead more
Why Five Star Bank invested in a VC firm
An Interview with Five Star Bank's President and CEO James Beckwith: Why Five Star Bank invested in an SBICRead more
Investing in a venture capital fund is highly speculative, involves a high degree of risk, and is designed only for sophisticated investors who are able to risk losing their entire investment in such a fund and who have limited need for liquidity.
This overview is intended for informational purposes only; does not constitute investment advice or a recommendation, an offer to sell, or the solicitation of an offer to buy; and is not the basis for any contract to purchase or sell any securities or other instruments in any jurisdiction, and should not provide the basis for any investment decision. Any offer to invest in any investment opportunity will only be made by means of official offering documents identified as such.
Past performance is not necessarily indicative of future results. There can be no assurance that venture capital investments will achieve the performance results stated, and there is no guarantee against the loss of part or all of an investor’s investment.
No representation, warranty or undertaking, express or implied, is given as to the accuracy or completeness of the information or opinions contained herein. No reliance may be placed for any purpose on the information and opinions contained in this document or their accuracy or completeness and nothing contained herein shall be relied upon as a promise or representation whether as to past or future performance. Certain information has been derived from materials furnished by outside sources and neither Moneta Ventures, LLC or its affiliates assumes any responsibility for independent verification of such information and has relied on such information being complete and accurate in all material respects. Nothing contained herein should be construed as legal, business or tax advice. Each prospective investor should consult its own attorney, business adviser and tax adviser as to legal, business, tax and related matters concerning the information contained herein.