SBA issues significant new policy guidance regarding the SBIC program

Insights and Analysis

SBA issues significant new policy guidance regarding the SBIC program

18 August 2023

On August 17, 2023, the U.S. Small Business Administration (SBA) issued significant new policy guidance regarding the Small Business Investment Companies (SBIC) program.

Our key takeaways from this new guidance include:

SBA expects to release the anticipated new Standard Operating Procedures (SOP) by August 25. The new SOP will replace all existing SBIC SOPs and all existing SBIC TechNotes.
Temporary SBIC applications are now available and can be found here. SBA expects to finalize the new SBIC application forms in September and welcomes comments from the SBIC community in the interim.
The temporary SBIC application forms can be used immediately. Legacy SBIC application forms can also be used for filings before September 30, 2023. However, regardless of which SBIC application form an applicant uses, substantial legal documents must now be submitted as part of the MAQ.
SBA is enhancing the pre-screen process. Applicants will be required to provide more information as part of the pre-screen then previously required. This new regime should improve the quality of SBA feedback at this stage in the process.
The pre-screen process is open to all applicants, including both Standard Debenture and Accrual Debenture SBIC applicants, and applicants considering the SBIC Critical Technologies (SBICCT) initiative. All applicants will use the same pre-screening form and submit their pre-screen materials to SBA.

We are reviewing all of the new materials thoroughly and our initial view is that these steps by SBA will materially improve the SBIC program for all stakeholders. The new policy guidance is detailed on the pages below and we
encourage you to review it. We will make ourselves available to answer any questions that you have. If you do have
questions, please feel free to reach out to any member of your Hogan Lovells SBIC team.

Authored by David Winter, Bryan Ricapito, Carol Fendler, Kevin Lees, Madelyn Healy Joseph, Matthew Bakios, Myles DePass, Pablo Gardea, Rachel Bayer, Justin Bevilacqua, Madison Kirton, and Curtis Victor.