Small Business:

Financial Health of Small Business Investment Companies

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

Additional Materials:

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.

Jun 29, 2020

Jun 22, 2020

Apr 27, 2020

  • business icon, source: Photodisc

    Priority Open Recommendations:

    Department of Commerce
    GAO-20-497PR: Published: Apr 20, 2020. Publicly Released: Apr 27, 2020.

Dec 13, 2019

Nov 19, 2019

Oct 22, 2019

Sep 26, 2019

Jul 16, 2019

Jun 12, 2019

Jun 11, 2019

Looking for more? Browse all our products here