Article Series: SBICs

The Small Business Investment Company (SBIC) program offers private capital a powerful but often underutilized tool: long-duration SBA-guaranteed leverage, regulatory flexibility, and a unique affiliation exception that can be especially valuable in the government contracting and defense industrial base markets.

In this four-part series, Maynard Nexsen’s Government Solutions Group examines the SBIC ecosystem from three perspectives: prospective SBIC applicants evaluating whether the program fits their investment strategy; existing SBICs looking for differentiated deal flow; and small government contractors seeking growth capital without unnecessarily sacrificing set-aside eligibility. The series also explores how these groups can connect to create better outcomes for both investors and contractors.

Published in this series:

• For existing SBICs (Group 1): Why Registered SBICs Should Look at Government Contractors (The Overlooked Edge)—makes the case that government contractor deal flow is an untapped opportunity for equity-focused SBICs.
• For prospective applicants (Group 2): How the SBIC Program Gives Private Capital Low-Cost Leverage + Regulatory Flexibility—explains the program’s economics and licensing advantages for fund managers evaluating the SBIC path.
• For small government contractors (Group 3): Growth Capital Without Losing Your Set-Aside Eligibility: What Small Government Contractors Need to Know—explains how SBIC capital preserves set-aside eligibility when ordinary PE cannot.
• The capstone (all three groups): From SBIC Bridge to Full Ecosystem: How Maynard Nexsen Is Connecting Investors, SBICs, and Small Government Contractors