How I Invest with David Weisburd E212: Unlocking $175M: Raising Venture & Private Equity Capital with SBICs
Sep 12, 2025
Join Eric Rosiak, CEO & CIO of Amplify Community Investment Partners, as he reveals the ins and outs of the SBIC program. Discover how to access $175M in low-cost capital without excessive risk! Eric breaks down the eligibility criteria, the allure of the new accrual debenture license for venture funds, and why big investment platforms are diving into SBICs. He also shares tactical advice on structuring agreements to maximize SBIC opportunities, all while highlighting the impressive historical returns and rigorous diligence required to succeed in this space.
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Diverse Institutional Demand Is Growing
- LPs in SBICs include banks, insurers, foundations and increasingly selective endowments and university endowments.
- Banks historically dominated due to regulatory alignment, but diverse institutional demand has grown as performance data accumulated.
Leverage Drives Strong Risk-Adjusted Returns
- SBIC returns have historically outperformed comparable private equity/credit benchmarks, driven largely by cheap SBA leverage.
- Leverage both enhances returns and can reduce portfolio risk when deployed at the fund level with SBA oversight.
Prepare For Rigorous SBA Licensing
- Prepare for an exhaustive SBA licensing diligence: provide many references, full disclosures, and expect FBI background checks.
- Allow at least six months to a year (sometimes longer) and secure anchor commitments to pass the SBA and private validation hurdles.