Small Business:

Financial Health of Small Business Investment Companies

RCED-93-51: Published: May 5, 1993. Publicly Released: May 5, 1993.

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

Pursuant to a congressional request, GAO reviewed: (1) the reasons for small business investment companies' (SBIC) liquidations between January 1986 and March 1991; (2) active and liquidated SBIC financial performances; and (3) the statistical correlation of key SBIC characteristics and investments with their liquidations and financial performance.

GAO found that: (1) most SBIC are liquidated for poor financial performance, while other SBIC are liquidated due to regulatory violations and voluntary surrender of licenses to avoid prepayment penalties; (2) high interest costs and liquidity problems have contributed to SBIC liquidations; (3) SBIC are more likely to fail if they are leveraged and equity-oriented; and (4) larger and older SBIC have performed better than smaller and newer SBIC.

Apr 7, 2014

Mar 28, 2014

Feb 25, 2014

Feb 13, 2014

Jan 16, 2014

Jan 6, 2014

Dec 18, 2013

Dec 11, 2013

Nov 26, 2013

Looking for more? Browse all our products here