By James F. Cotter

A company that has a net worth of $18 million or less, and whose after-tax net income for the previous two years is not over $6 million, may be eligible for funding from an SBIC, or Small Business Investment Company.  If your business does not qualify by these standards,  it may still qualify as a small business by other criteria, such as  employment or amount of annual sales,  both of which standards vary from one industry to another.  This information is provided by the Small Business Administration.  (www.sba.gov/aboutsba/sbaprograms/inv/esf/inv_sbic_financing.html)

SBICs have been supplying loans, equity capital and management assistance to small businesses since 1959.  There are more than 400 SBICs operating today around the country.  The Small Business Administration provides the following mission statement:  “The mission of the Small Business Investment   Company (SBIC) program is to improve and stimulate the national economy and small businesses by stimulating and supplementing the flow of private equity capital and long term loan funds for the sound financing, growth, expansion and modernization of small business operations while insuring the maximum participation of private financing sources.”      (www.sba.gov/INV) 

A completed business plan is usually required for funding and should include a management profile, product description and executive summary.  You will need an analysis of the industry and the market, as well as past and projected financial statements.