Sierra Capital Partners helps banks evaluate, build, and monitor SBIC investment programs designed to support CRA objectives, diversify earnings, and create access to lower middle-market banking relationships.
What is the SBIC Program?
The Small Business Investment Company program is administered by the U.S. Small Business Administration. SBIC funds are private credit, private equity, or growth equity funds licensed by the SBA to provide capital to qualifying U.S. small businesses.
Why Banks Invest in SBIC Funds
CRA Objectives
SBIC investments may support a bank’s Community Reinvestment Act objectives when structured and documented appropriately.
Portfolio Diversification
SBIC funds can provide exposure to private credit, private equity, and growth equity strategies.
Banking Relationship Opportunities
SBIC portfolio companies may create opportunities for lower middle-market lending, deposits, and broader banking relationships.
How Sierra Capital Partners Helps
Manager Sourcing
Identify and track SBIC managers that may fit the institution’s profile and objectives.
Investment Policy Support
Support the development of investment policy, portfolio parameters, guardrails, and review processes.
Manager Screening
Conduct quantitative and qualitative review of managers, strategies, and relevant fund materials.
Consolidated Reporting
Create customized reports to show performance and status of consolidated SBIC investments.
Due Diligence Memos
Prepare manager due diligence summaries for review and approval by bank management.
Ongoing Monitoring
Maintain ongoing dialogue with managers and support future portfolio reviews.