Under Fire: First 8(a) Set Asides, Now Small Business Investment Companies Are Being Attacked
Reynolds, Rhonda, Black Enterprise
As the Small Business Administration continues to fulfill its federal mandate to streamline all budgets, a telescope has been pointed toward minority business once again. The target this time: The SBA's Specialized Small Business Investment Company (SSBIC) program, which is charged with investing in socially or economically disadvantaged and minority-owned businesses.
SSBICs are privately held firms that receive funds by selling debentures (loans) or preferred stock to the SBA. SSBICs also leverage outside capital and then invest the money in disadvantaged or minority-owned businesses. For every dollar SSBICs invest, the federal government matches up to $4 in loans.
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Publication information: Article title: Under Fire: First 8(a) Set Asides, Now Small Business Investment Companies Are Being Attacked. Contributors: Reynolds, Rhonda - Author. Magazine title: Black Enterprise. Volume: 26. Issue: 4 Publication date: November 1995. Page number: 35. © 2007 Earl G. Graves Publishing Co., Inc. COPYRIGHT 1995 Gale Group.
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