Instructions for Application for Commitment of Sbic Debentures

This legal document was released by the U.S. Small Business Administration and contains official instructions for Application for Commitment of Sbic Debentures .

FAQ

Q: What is an SBIC debenture?
A: An SBIC debenture is a type of long-term loan or bond issued by the Small Business Investment Company (SBIC).

Q: Who can apply for a commitment of SBIC debentures?
A: Qualified small businessinvestment companies (SBICs) can apply for a commitment of SBIC debentures.

Q: What are the eligibility criteria for applying for a commitment of SBIC debentures?
A: To be eligible, an SBIC must be licensed by the U.S. Small Business Administration (SBA), meet certain financial requirements, and have a sound business plan.

Q: How can an SBIC apply for a commitment of debentures?
A: SBICs can apply for a commitment of debentures by submitting an application to the SBA.

Q: What is the purpose of SBIC debenture financing?
A: The purpose of SBIC debenture financing is to provide funding to SBICs, which in turn provide long-term loans, equity investments, and management assistance to small businesses.

Q: What are the benefits of SBIC debenture financing?
A: The benefits of SBIC debenture financing include access to low-cost, long-term capital, a favorable debt-to-equity ratio, and the ability to leverage private capital.

Q: How much funding can an SBIC receive through a commitment of debentures?
A: The amount of funding an SBIC can receive through a commitment of debentures depends on its license type and the availability of debenture authority from the SBA.

Q: What is the process for applying for a commitment of SBIC debentures?
A: The process includes submitting an application, undergoing a thorough review by the SBA, and obtaining approval from the SBA's Office of Investment and Innovation.

Q: Can an SBIC use debenture funds for any purpose?
A: Debenture funds must be used in accordance with the SBIC's business plan, which includes providing financing and support to small businesses.

Q: Are there any fees associated with a commitment of SBIC debentures?
A: Yes, there are fees associated with a commitment of SBIC debentures, including application fees, ongoing servicing fees, and prepayment fees.