Practice

Small Business Investment Company (SBIC)

Four decades of experience representing hundreds of SBICs

The economy depends on privately held businesses, and privately held businesses need capital to grow. Our SBIC lawyers help investors deliver needed capital and reap the returns by assisting in all aspects of private equity fund formation, including SBICs created through the U.S. Small Business Administration.

We seek to differentiate ourselves by providing our clients with in-depth experience, innovative problem solving, and superior service. We represent a number of funds, including buy-out, growth capital, venture capital, seed capital and credit investment strategies, including portfolios that are unleveraged, traditionally leveraged and government leveraged. Our clients include both U.S. and non-U.S. management teams and investment objectives. Our lawyers have experience in all aspects of investment manager representation, including fund formation; negotiation with institutional investors; fund combinations and portfolio purchases; management organization and reorganization; SEC and SBA regulatory compliance, and investment transactions.

Our lawyers have represented hundreds of SBICs and their portfolio companies for more than four decades. We offer our SBIC clients a full range of services in the debenture, impact, and early stage leverage programs. Our attorneys assist SBIC clients with fund formation, licensing, management organization, Small Business Administration (SBA) buy-outs, post-licensure regulation, examinations, and investment transactions. 

Areas of Focus

We have guided hundreds of SBICs and have a custom-built platform providing a full range of services, including:
  • Preparing SBIC license applications
  • Presenting to the Small Business Administration (SBA) Investment Committee
  • Preparing "green light" requests and management assement questionnaires (MAQ)
  • Fund Formation, including the creation of fund documents and agreements and limited partner investments
  • Creation and review of private offering memo
  • Review of "small business" business plans
  • Transactional support, including equity investments, debt financings and distressed transactions

Experience

We have guided hundreds of SBICs in connection with fund formation and licensing by the U.S. Small Business Administration, portfolio transactions and regulatory compliance, as well as other high stakes matters. Our experience includes:
  • Represented Lightspring Capital Partners, a women-led investment team focusing on small business investments, in obtaining its Small Business Investment Company (SBIC) license
  • Represented SBIC Fund in $17 million capital call facility
  • Represented SBIC fund in $8.75 million secured mezzanine debt and preferred stock investment in a designer, developer, and marketer of tableware serving high-end hospitality and retail customers
  • Represented financial sponsor of PRC located management team with assets under management exceeding $2 billion
  • Designed structures for two-tier drop-down SBICs for large financial groups and business development companies
  • Represented of SBIC license applicant through SBA “fast track” process in obtaining approval three weeks after submission of license application
  • Represented license applicant for simultaneous holding of both SBIC and SSBIC licenses
  • Successfully defended Brightwood Capital SBIC II, LP and Brightwood Capital Advisors, LLC in related fraudulent conveyance adversary proceedings filed in the United States Bankruptcy Court for the Northern District of Georgia (Atlanta Division) commenced by the Chapter 7 Trustees in two affiliated bankruptcy cases