On Wednesday, June 10, 2015, the Small Business Investment Company (SBIC) Capital Act of 2015 was passed by the House Small Business Committee. The Bill was passed by the Senate Committee on Small Business and Entrepreneurship on April 23, 2015. The Bill must still be voted on by both Houses of Congress before the President can sign it into law.

Under its current form, the Bill would raise the ceiling on the maximum amount of outstanding leverage that two or more commonly controlled SBICs can obtain from the Small Business Administration from $225 million to $350 million. This would considerably relieve some of the problems associated with managing capital when considering whether to wind down or raise an additional fund.

If you have any questions about what the impact the SBIC Capital Act could have on your existing or prospective funds, please don’t hesitate to contact Matt Dwyer or Chris Preston from our SBIC practice group.

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