Saratoga Investment, a business development company, received notification from the Small Business Administration that the company’s application for a third Small Business Investment Company (SBIC) license has been approved.
The new SBIC license will provide up to $175 million in additional long-term capital in the form of SBA-guaranteed debentures, subject to the issuance of a leverage commitment by the SBA. Under current SBIC regulations, for two or more SBICs under common control, the maximum amount of outstanding SBA debentures cannot exceed $350 million with at least $175 million in combined regulatory capital.
“We are excited to continue to grow our relationship with the SBA through a third SBIC license,” Christian L. Oberbeck, chairman and CEO of Saratoga Investment, said. “We look forward to expanding upon our existing investments in support of the SBAs mission to provide growth capital to small businesses which are so important to our economy. Our SBA-guaranteed debentures are a great benefit to our capital structure, further enabling us to provide innovative and cost-effective solutions to the many smaller and middle market companies we finance. We are grateful to the SBA for their continued support of Saratoga. We continue to develop the size and quality of our management team, disciplined credit analysis and robust investment sourcing pipeline. We will continue to apply consistent investment principles as we deploy the additional capital being made available to us with this third SBIC license.”
