In response to Industry concerns, the U.S. Small Business Administration (SBA) has revised the reporting requirements of SBA form 468 in an effort to reduce the compliance burdens on Small Business Investment Companies (SBICs).

In early 2011, the SBA revised Form 468 in a manner that would require every SBIC to report detailed financial data about each of its portfolio companies. Many SBICs and the National Association of Small Business Investment Companies (NASBIC) raised concerns about the volume of data requested, the timeline in which such data was required to be collected, and the use of the data once it was submitted to the SBA. In March 2011, the SBA further revised Form 468, and in June 2011 this revised form was made available to SBICs. Unfortunately, the revised form did not address many of the concerns raised by industry participants. On October 5, 2011, the SBA hosted a conference call with industry participants to discuss their concerns. As a result, the SBA has made additional changes to the reporting obligations of Form 468 as follows:

  • Schedule 8 to Form 468, which requests financial data and capitalization information about each portfolio company of an SBIC, must be submitted quarterly. However, an SBIC may now submit the quarterly reports in any format it chooses.
  • The annual report for Schedule 8 to Form 468 must still be submitted in the SBA’s format. However, this annual report is not required to be submitted until the SBA has implemented a new web-based reporting system.
  • Schedule 9 to Form 468 will eventually be required to be submitted on a quarterly and annual basis in the SBA’s format. However, this schedule will not be required to be submitted until the web-based reporting system is operational.
  • Form 468 quarterly reports are due on October 30, 2011 without Schedules 8 or 9. By November 30, 2011, the information on Schedule 8 must be submitted.
  • The filing deadline for Form 468 annual reports (including Schedule 8) remains unchanged.