In September 2019, the SBIC Funding Corporation completed a pooling of SBA
debentures in the amount of $991 million. The SBA debentures have a coupon
rate of 2.283 percent. This most recent pricing reflects a decrease from
the March 2019 rate of 3.113 percent.
The pricing of the pool is a critical component to the cost of funding used
by SBIC funds. Once pooled, the interest rate on the SBA debentures becomes
fixed for a 10-year period. The SBIC fund is responsible only for a
semi-annual interest payment on the SBA debentures until the SBA debentures
are repaid, which must occur within 10 years. In addition, there are no
The historical pooling is reflected in our chart.
Click to view full size.
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