Download or read book SBA New Markets Venture Capital Program written by Congressional Research Congressional Research Service and published by CreateSpace. This book was released on 2014-12-08 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: Authorized by P.L. 106-554, the Consolidated Appropriations Act, 2001 (Appendix H: the New Markets Venture Capital Program Act of 2000), the New Markets Venture Capital (NMVC) program is designed to promote economic development and the creation of wealth and job opportunities in low-income geographic areas by addressing the unmet equity investments needs of small businesses located in those areas. Modeled on the Small Business Association's (SBA's) Small Business Investment Company (SBIC) program, SBA-selected, privately owned and managed NMVC companies provide funding and operational training assistance to small businesses. To do so, they use private capital the NMVC company has raised (called regulatory capital) and up to 150% of that amount (called leverage) from the sale of SBA-guaranteed 10-year debentures, or loan obligations, to third parties, subject to the availability of funds. Because the SBA guarantees the debenture, the SBA is able to obtain favorable interest rates. NMVC companies are responsible for meeting the terms and conditions set forth in the debenture. At least 80% of the investments must be in small businesses located in a low-income area. Specialized Small Business Investment Companies (SSBICs) established under the SBIC program are also eligible for NMVC operational assistance training grants, which are awarded on a dollar-to-dollar matching basis. Six NMVC companies are currently participating in the program. The NMVC program was appropriated $21.952 million in FY2001 to support up to $150 million in SBA-guaranteed debentures and $30 million to fund operational assistance training grants for FY2001 through FY2006. The funds were provided in a lump sum in FY2001 and were to remain available until expended. In 2003, the unobligated balances of $10.5 million for the NMVC debenture subsidies and $13.75 million for operational assistance grants were rescinded. The program continues to operate, with the number and amount of financing declining in recent years as the program's initial investments expire and NMVC companies engage only in additional follow-on financings with the small businesses in their portfolios. No bills have been introduced during the 113th Congress concerning the NMVC program. However, more than 30 bills were introduced in recent Congresses to either expand or amend the program. Many of these bills would have increased the program's funding. For example, during the 112th Congress, H.R. 2872, the Job Creation and Urban Revitalization Act of 2011, was introduced on September 8, 2011. The bill would have provided the NMVC program such subsidy budget authority as may be necessary to guarantee $75 million of debentures and $15 million for operational assistance training grants for FY2012 through FY2013. This report examines the NMVC program's legislative origins and describes the program's eligibility and performance requirements for NMVC companies, eligibility requirements for small businesses seeking financing, and definition of low-income areas. It also reviews regulations governing the SBA's financial assistance to NMVC companies and provides program statistics. The report concludes with an examination of (1) efforts to eliminate the program based on concerns that it duplicates other SBA programs and is relatively expensive, (2) the rescission of the program's unobligated funding in 2003, and (3) recent congressional efforts to provide the program additional funds.
Download or read book SBA New Markets Venture Capital Program written by and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book SBA New Markets Venture Capital Program written by Robert Jay Dilger and published by . This book was released on 2013 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book New Markets Venture Capital Program Act of 2000 written by United States. Congress. House. Committee on Small Business and published by . This book was released on 2000 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book SBA Reauthorization written by United States. Congress. Senate. Committee on Small Business and Entrepreneurship and published by . This book was released on 2008 with total page 64 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Small Business Administration Investment and Loan Programs written by Alan R. Connoly and published by . This book was released on 2013 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Small Business Administration's (SBA's) Small Business Investment Company (SBIC) Program is designed to enhance small business access to venture capital by stimulating and supplementing "the flow or private equity capital and long term loan funds which small business concerns need for the sound financing of their business operations and for their growth, expansion, and modernisation, and which are not available in adequate supply". Facilitating the flow of capital to small businesses to stimulate the national economy was, and remains, the SBIC program's primary objective. This book examines small business administration investment and loan programs with a focus on the SBIC; SBA New Markets Venture Capital program; Small Business Administration 7(a) Loan Guaranty Program; the Small Business Administration 504/CDC Loan Guaranty Program; and the microloan program.
Download or read book SBA s Venture Capital Programs written by United States. Congress. House. Committee on Small Business and published by . This book was released on 1996 with total page 152 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Sba Small Business Investment Company Program written by Robert Jay Dilger and published by Createspace Independent Pub. This book was released on 2013-01-05 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Small Business Administration's (SBA's) Small Business Investment Company (SBIC) Program is designed to enhance small business access to venture capital by stimulating and supplementing “the flow of private equity capital and long term loan funds which small business concerns need for the sound financing of their business operations and for their growth, expansion, and modernization, and which are not available in adequate supply.” Facilitating the flow of capital to small businesses to stimulate the national economy was, and remains, the SBIC program's primary objective. At the end of FY2012, there were 301 privately owned and managed SBICs licensed by the SBA, providing financing to small businesses with private capital the SBIC has raised (regulatory capital) and funds the SBIC borrows at favorable rates (leverage) because the SBA guarantees the debenture (loan obligation). SBICs pursue investments in a broad range of industries, geographic areas, and stages of investment. Some SBICs specialize in a particular field or industry, while others invest more generally. Most SBICs concentrate on a particular stage of investment (i.e., startup, expansion, or turnaround) and geographic area. The SBA is authorized to provide up to $3 billion in leverage to SBICs annually. The SBIC program has invested or committed about $18.2 billion in small businesses, with the SBA's share of capital at risk about $8.8 billion. In FY2012, the SBA committed to guarantee $1.9 billion in SBIC small business investments, and SBICs provided another $1.3 billion in investments from private capital, for a total of more than $3.2 billion in financing for 1,094 small businesses. Some Members of Congress, the Obama Administration, and small business advocates argue that the program should be expanded as a means to stimulate economic activity, create jobs, and assist in the national economic recovery. Others worry that an expanded SBIC program could result in loses and increase the federal deficit. In their view, the best means to assist small business, promote economic growth, and create jobs is to reduce business taxes and exercise federal fiscal restraint. Some Members have also proposed that the program target additional assistance to startup and early stage small businesses, which are generally viewed as relatively risky investments but also as having a relatively high potential for job creation. In an effort to target additional assistance to newer businesses, the SBA has established, as part of the Obama Administration's Startup America Initiative, a $1 billion early stage debenture SBIC initiative (up to $150 million in leverage in FY2012, and up to $200 million in leverage per fiscal year thereafter until the limit is reached). Early stage debenture SBICs are required to invest at least 50% of their investments in early stage small businesses, defined as small businesses that have never achieved positive cash flow from operations in any fiscal year. This publication describes the SBIC program's structure and operations, including two recent SBA initiatives, one targeting early stage small businesses and one targeting underserved markets. It also examines several legislative proposals to increase the leverage available to SBICs and to increase the SBIC program's authorization amount to $4 billion.
Download or read book Report of the SBA Task Force on Venture and Equity Capital for Small Business written by United States. Task Force on Venture and Equity Capital for Small Business and published by . This book was released on 1977 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Venture Capital Financing Via SBIC s and MESBIC s written by United States. Congress. House. Committee on Small Business. Subcommittee on SBA and SBIC Authority, Minority Enterprise, and General Small Business Problems and published by . This book was released on 1983 with total page 68 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book SBA Reauthorization written by United States. Congress. Senate. Committee on Small Business and Entrepreneurship and published by . This book was released on 2004 with total page 164 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Sba Small Business Investment Company Program written by Robert Jay Dilger and published by CreateSpace. This book was released on 2015-06-26 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Small Business Administration's (SBA's) Small Business Investment Company (SBIC) program is designed to enhance small business access to venture capital by stimulating and supplementing "the flow of private equity capital and long-term loan funds which small-business concerns need for the sound financing of their business operations and for their growth, expansion, and modernization, and which are not available in adequate supply." Facilitating the flow of capital to small businesses to stimulate the national economy was, and remains, the SBIC program's primary objective.
Download or read book Changes to SBA financing programs needed for revitalization of small business manufacturers written by United States. Congress. House. Committee on Small Business and published by . This book was released on 2003 with total page 108 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Small Business Investment Companies written by United States. Small Business Administration. Investment Division and published by . This book was released on 1992 with total page 16 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Full Committee Hearing on Legislation Updating and Improving the SBA s Investment and Surety Bond Programs written by United States. Congress. House. Committee on Small Business and published by . This book was released on 2007 with total page 108 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book SBA Reauthorization written by United States. Congress. Senate. Committee on Small Business and Entrepreneurship and published by . This book was released on 2004 with total page 160 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book SBA s Funding Priorities for Fiscal Year 2002 written by United States. Congress. Senate. Committee on Small Business and published by . This book was released on 2002 with total page 328 pages. Available in PDF, EPUB and Kindle. Book excerpt:
