The Minority Enterprise Small Business Investment Company Program

Abstract

Specialized small business investment companies (SSBICs) are privately owned companies that are funded by the U.S. Small Business Administration to finance minority-owned businesses. Most SSBICs began operations as nonviable companies, inherently limited in their ability to serve the range of capital needs of small firms in their targeted markets. Most of the SSBICs chartered over the last 26 years are out of business today. In the midst of this generally dismal industry, some SSBICs are growing substantially and operating profitably from their returns on minority business investments. This article differentiates the successful SSBICs from the failures.