The U.S. Small Business Administration (“SBA”) extended the deadline for early stage fund managers to file a Management Assessment Questionnaire (“MAQ”) to apply to be licensed as an Early Stage Small Business Investment Company (“Early Stage SBIC”) until May 16, 2014. After the SBA reviews the MAQs that are filed, it will invite qualified funds in for an interview with the SBA between June 30, 2014 and July 8, 2014.

The SBA started the Early Stage SBIC program in 2012 as part of President Obama's Start-Up America Initiative in an attempt to expand entrepreneurs' access to capital and encourage innovation. Licensed Early Stage SBICs may receive SBA-guaranteed debenture leverage of up to 100 percent of their private capital commitments, up to a maximum of $50 million, provided that certain restrictions are satisfied. Early Stage SBICs are required to invest at least 50% of their investment dollars in early stage small businesses. An “early stage” small business is one that has never achieved positive cash flow from operations in any fiscal year.

If you have questions regarding the qualifications or application process for Early Stage SBICs, please contact any of the attorneys listed on this page.