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“SBICCT Initiative Approves First Group of Licensees and Investment Funds for Critical Technology Areas”
The Small Business Investment Company Critical Technology (SBICCT) Initiative is making waves in the investment world as it recently approved the first group of Small Business Investment Company Licensees and Green Light Approved investment funds. This initiative, aimed at attracting and scaling private investment into technology areas critical to economic and national security, has already garnered significant interest and support.
Under the SBICCT Initiative, funds licensed are eligible for $175 million in U.S. Small Business Administration (SBA) guaranteed loans, with additional support from the Department of Defense (DoD) to drive value in the implementation of investment strategies. SBA Administrator Isabel Casillas Guzman and Secretary of Defense Lloyd Austin announced the initiative in December 2022, emphasizing the importance of maintaining America’s global competitive edge through strategic investments.
The first group of licensees plans to collectively invest over $2.8 billion in more than 1,000 portfolio companies, showcasing the potential impact of the initiative. With the SBA granting the first SBICCT Initiative license this summer and licensing four funds while green-lighting nine more, the momentum is only expected to grow. These funds are projected to invest more than $4 billion in nearly 1,700 portfolio companies, further solidifying the initiative’s impact on the investment landscape.
Overall, the SBICCT Initiative is proving to be a game-changer in the world of investment, with its focus on critical technology areas and collaboration between government agencies and the investment community. As the initiative continues to gain traction, it will be interesting to see how it shapes the future of investment in technology and national security.
