SEC Small Business Advisory Committee to Explore Recent Changes to U.S. Small Business Administration’s Small Business Investment Company Program
Author: Destiny Aigbe
July 12, 2024
The Securities and Exchange Commission’s (SEC) Small Business Capital Formation Advisory Committee is set to delve into the latest modifications to the U.S. Small Business Administration’s (SBA) Small Business Investment Company (SBIC) program in its upcoming meeting on July 30, 2024. This session is crucial for small business stakeholders and will be accessible to the public via a live webcast on www.sec.gov.
Understanding the Committee's Role
The SEC’s Small Business Capital Formation Advisory Committee is tasked with providing expert advice and recommendations to the Commission on various rules, regulations, and policy matters that impact small businesses. This includes evaluating the landscape of small business capital raising and exploring mechanisms to enhance access to funding.
Spotlight on the SBIC Program
One of the key topics on the agenda is the recent evolution of the SBIC program. This initiative, administered by the SBA, licenses privately-owned and operated investment funds to invest in American small businesses. A standout feature of the SBIC program is its ability to leverage SBA-guaranteed loans, which, when combined with privately raised capital, significantly boost the investment potential for small businesses across the U.S.
Agenda Highlights
The meeting will open with observations from Committee members regarding the current state of small business capital raising. This will set the stage for an in-depth discussion on the recent enhancements to the SBIC program aimed at broadening access to diverse funding sources for small businesses, start-ups, and fund managers.
Expert Insights
To provide a comprehensive overview, the Committee will hear from both an SBIC fund representative and a practitioner. These experts will:
- Outline the SBIC program and its recent changes, including the introduction of a new SBA-guaranteed loan type for private funds.
- Explain the regulatory framework that governs SBICs.
- Share their experiences, highlighting both successes and challenges encountered thus far.
The discussion will kick off with remarks from Bailey DeVries, a Committee member who oversees the SBIC program as the SBA’s Associate Administrator and Head of the Office of Investment and Innovation. Her insights will be invaluable in understanding the program's current state and its future trajectory.
Why This Matters
The enhancements to the SBIC program are designed to foster a more inclusive and diverse funding environment for small businesses. By leveraging SBA guarantees, these investment funds can inject more capital into the small business ecosystem, driving innovation, job creation, and economic growth.
About the Author
Destiny Aigbe
Managing Partner
Aigbe Law PLLC | Dark Alpha Capital
A Corporate and Securities Law Firm
With a robust foundation in law and finance, Destiny Aigbe has carved a distinguished career, underpinned by his pivotal role in orchestrating and managing complex transactions that have propelled companies to significant growth and market prominence. As a seasoned attorney and strategic advisor, Destiny has been instrumental in facilitating over $75 million in capital raises, demonstrating a keen acumen for securing funding and fostering investor confidence.
Destiny's leadership in the execution of six successful public listings, through meticulously structured reverse mergers and registration statements, showcases his adeptness in navigating the intricacies of the public markets and his capacity to guide companies through transformative growth phases. His involvement in five mergers as an operator further illustrates his versatile skill set, extending beyond legal expertise to include hands-on management and operational strategy, though these ventures did not involve funding.
Destiny's professional journey is marked by a commitment to excellence and a diverse range of experiences, from representing a wide spectrum of clients including public and private companies, and investment firms, to holding significant roles within the US government. His tenure with the US Department of State and the National Institutes of Health highlights his adaptability and his contribution to the advancement of entrepreneurial ventures in sectors like biotechnology and nanotechnology through strategic funding initiatives.
An alumnus of Vanderbilt University Law School, Destiny focused on Finance and Mergers & Acquisitions, further honing his expertise with a certificate in Law and Business. His foundational education in Finance was obtained with honors from the University of Maryland's Robert H. Smith School of Business, which laid the groundwork for his subsequent achievements in investment banking and legal practice.
Residing in the Washington, D.C. area, Destiny Aigbe continues to leverage his extensive experience and insightful leadership to drive innovation, growth, and success for his clients and the ventures he is involved with.
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