In connection with the U.S. Small Business Administration’s (SBA) commitment
of up to $1 billion in available leverage to Early Stage Small Business
Investment Company (SBIC) Funds over a five year period, SBA has issued a Call
Notice for Early Stage fund managers interested in forming an SBIC fund to be
licensed as an Early Stage SBIC Fund.
To expeditiously license qualified applicants that have raised the requisite
capital for an Early Stage SBIC License, SBA has divided applicants into two
tracks based on applicants’ committed capital. Track 1 will apply to applicants
with signed commitments for at least $15 million in Regulatory Capital and with
“soft-circled” commitments for the remaining capital needed to reach the minimum
of $20 million in Regulatory Capital. Track 2 will apply to all other
The question and answer period for all applicants ended on May 18, 2012.
Thereafter, the timelines for Tracks 1 and 2 diverge. Management Assessment
Questionnaires (MAQs) for Track 1 applicants were due on May 25, 2012. SBA
expects to invite qualified Track 1 applicants for interviews between June 6,
2012, and June 13, 2012. Green Light letters will be issued no later than June
29, 2012. Track 1 applicants will be required to submit full license
applications to SBA no later than July 30, 2012, and licensing decisions will be
made no later than Sept. 28, 2012.
Track 2 applicants must submit their MAQs to SBA no later than June 19, 2012.
Thereafter, qualified applicants will be invited for interviews with SBA to be
held between July 23, 2012, and Aug. 3, 2012. Green Light letters will be issued
by Sept. 28, 2012. License applications are due no later than May 15, 2013, and
licensing decisions will be made no later than Sept. 30, 2013.
In the case of both Track 1 and 2 applicants, license applications must be
submitted with at least $20 million in committed Regulatory Capital.
The Private Equity Practice Group at McGuireWoods LLP is dedicated to keeping
clients advised of new legislative and business developments as they occur. If
you have any questions regarding these issues, please feel free to contact
A. Kromkowski (312.849.8170),
W. Gott (312.750.8883), your primary attorney at McGuireWoods LLP, or any of