SBIA President Brett Palmer: New Data Underscores Outstanding Performance, Taxpayer Benefits of Small Business Investment Companies
WASHINGTON – Small Business Investor Alliance (SBIA) President Brett Palmer released the following statement today highlighting the U.S. Small Business Administration’s Small Business Investment Company (SBIC) Performance Report showing that SBICs consistently outperform their non-SBICs peers and provide a net benefit to U.S. taxpayers.
“SBICs play a vital role in driving investment to small businesses across America, including in rural and underserved areas,” said SBIA President Brett Palmer. “The latest data from SBA demonstrates, once again, that investing in American small businesses continues to produce strong financial returns and positive economic impact. What makes SBICs uniquely effective is the private-sector led, government-backed partnership that allows small businesses to access the capital they need to grow, innovate, and create jobs. SBIA looks forward to working with the Trump administration to build upon the demonstrated success of the SBIC program as it helps small businesses build a better future for all Americans.”
The Performance Report benchmarks key performance metrics on 165 leveraged private equity and private credit SBIC funds between 2013-2022. The report found that, for nine out of ten years, the SBIC Private Credit Portfolio outperformed U.S. Private Credit benchmarks. And, for eight of the ten years, the SBIC Private Equity Portfolio outperformed to U.S. Private Equity median benchmarks. The report further notes that, “Over the last 24 years, the SBIC program has also operated profitably for the U.S. Federal Government.” Read the full Performance Report HERE.
The Performance Report reaffirms a separate Institute for Private Capital analysis that found that SBICs consistently outperform their non-SBIC peers. Read the key findings and full Institute for Private Capital report HERE.
# # #
About the Small Business Investor Alliance
The Small Business Investor Alliance (SBIA) is the premier organization of lower middle market private equity funds and investors. SBIA works on behalf of its members as a tireless advocate for policies that promote competitive markets and robust domestic investment for growing small businesses. SBIA has been playing a pivotal role in promoting the growth and vitality of the private equity industry for over 60 years. For more information, visit www.SBIA.org or call (202) 628-5055.
About Small Business Investment Companies
Small Business Investment Companies are highly regulated, venture capital and private equity funds that invest exclusively in domestic small businesses to help them grow and create American jobs. SBICs pursue investments in a broad range of industries, geographic areas, and stages of investment. Since its inception, the Small Business Investment Company program has facilitated access to patient capital for tens of thousands of small businesses and has created millions of American jobs. The SBIC program is one of the best examples of a public-private partnership, matching federal funding with experienced private investors to support domestic small business growth at zero risk to the American taxpayer.
