Small Business Investment Company [SBIC] Law and Legal Definition
Small Business Investment Company [SBIC] is a SBA-licensed, private company providing equity capital and long-term loans to small businesses. SBIC lends money to, or buy stock or convertible debentures in, firms with less than $5 million in assets, net worth of not more than $2 1/2 million, and after-tax net income not exceeding $250,000. Prime advantage with SBIC is that, it has special IRS tax treatment, allowing stockholders to write off credit losses against ordinary income. Additionally, a loss on the sale of small business investment company stock is treated as an ordinary trade or business loss.
Legal Definition list
- Small Business Investment Company [SBIC]
- Small Business Investment Companies
- Small Business Investment Act
- Small Business Innovative Research [SBIR] Contract
- Small Business Innovation Research Program
- Small Business Job Protection Act
- Small Business Jobs Act 2010
- Small Business Large Business Relationships
- Small Business Owned and Controlled by Service-Disabled Veterans
- Small Business Owned and Controlled by Veterans
- Small Business Related Security
Related Legal Terms
- Accompanying Relative [Immigration]
- Accompanying Spouse and Dependents
- Accompanying the Armed Forces outside the United States
- Accompanying the Federal Government Outside the United States
- Accompanying Visa
- Actual Investment
- Affected Item of Business
- Affidavit of Small Estate
- Affiliate and Associated Company
- Affiliated Business Arrangement
