Small Business Investment Companies (SBICs)
| Objective: | To provide equity capital, long-term loans, and management assistance to eligible small businesses. |
| Eligibility: | Small, independently-owned businesses that are not dominant in their fields; size limitations vary from industry to industry (typically capped at 500 employees). |
| Cost: | Variable, depending on policies of the individual SBIC and the situation of the small business receiving financing. |
| Services: | Financial assistance in the form of direct loans, guaranteed loans, equity capital, and advisory services. |
Description
Congress created the Small Business Investment Company (SBIC) program to ensure that independent small businesses have access to long-term financing and venture capital resources needed to maintain and expand their operations. SBICs are privately organized and managed investment firms licensed and regulated by the Small Business Administration (SBA). Under this program, the SBA supports authorized SBICs with government-backed funds, which in turn are invested in small enterprises. SBICs are controlled by their owners and managers, who make all decisions according to their own policies with regard to investment strategy, size of financing provided, industry preference, and their favored region of activity. SBIC investment financing is structured according to the applicant firm's characteristics and needs. SBICs are prohibited from financing some types of real estate activity.
Nearly any corporation or limited partnership can apply for a license to operate as an investment company. A prospective SBIC must have at least $1 million in capital to obtain a license. In exchange for a pledge to invest solely in small businesses, the investment company can obtain SBA matching funds by issuing debentures, promissory notes, or other obligations with a federal guarantee. SBICs are obligated to operate within the regulations under which they are licensed and backed by the SBA. The entire private capital of an SBIC is always at risk before the funding guaranteed by the SBA.
SBICs seek to fill a gap in available financing for small business, usually serving as financier in one of three ways by:
Most private venture capital firms are so large that they make investments of no less than several million dollars in a specific company — a floor much greater than the needs of the typical investment company client. SBICs, by design, are smaller than traditional venture capital firms, and they concentrate their efforts on making smaller investments. The SBA gives highest priority to SBIC applicants from parts of the country underserved by private venture capitalists, and to those applicants with an interest in financing new businesses.
Studies have shown that every dollar lent by an SBIC to a client firm attracts an average of two dollars from other lenders. Small operations can derive other benefits from working with an SBIC since the SBA requires all investment companies to provide management expertise and a broad range of business advice that can help insure the success of SBIC clients. SBICs are prohibited from taking control of businesses they help finance.
Eligible for SBIC financing is any firm with a net worth of $18 million or less and an average after-tax income of $6 million or less. The level of participation varies according to individual SBIC criteria. Some investment companies offer loans or make capital investments of up to $250,000, while others will go as high as $5 million. Loans have a minimum term of five years. Manufacturers tend to use this source of financing more than other SBA-supported activities. In fiscal 1994, 44 percent of SBIC-supported financing was directed toward manufacturers.
The SBA also sanctions a specialized group of SBICs known as Specialized Small Business Investment Companies (SSBICs), which invest only in companies owned by persons who are economically or socially disadvantaged. Some 90 SSBICs exists around the country. Generally, the same rules and operating procedures apply, although in return for their specialized focus, SSBICs are offered unique incentives in the form of preferred stock and debentures subsidized by the SBA.
Application Process
In order to apply for SBIC financing, a firm must present a business plan and other documentation to the investment company from which it hopes to receive financing. The plan must detail its management and operations system, financial situation, and funding needs. Although each SBIC can define its own application needs, all require the following specific information:
Since the SBA is removed from the case-by-case decision-making process, an SBIC is usually able to notify a potential participating firm if it will receive financing within several weeks; sometimes, a decision is reached in a few days. Generally, the more thorough the applicant's presentation, the less time it takes for the SBIC to reply.
Impact
Since Congress authorized the SBIC program in 1958, more than $10 billion has been distributed to over 100,000 small businesses across the country. In fiscal 1993, the SBIC program disbursed over $86.8 million to small businesses. Currently, 187 privately-managed regular SBICs and 90 SSBICs operate in 46 states and the District of Columbia.
Success Stories
1) America Online, Inc., of Vienna, Virginia, works in the field of computer data access, which allows a computer user to connect with information sources, electronic mail, and user groups. To get the company off the ground, a group of SBICs provided start-up capital in 1985 and offered additional financial support for two years thereafter to help with expansion. This investment was critical for this small but fast-growing firm. Today, America Online has revenues at $144 million and employs some 527 people. The company paid $5 million in income taxes in 1994.
2) Octel Communications Corporation of Milpitas, California, is the leading producer of voice information processing systems, which use the touch-tone telephone as the terminal and the fax machine as the printer. Three SBICs financed Octel in 1983, when its annual revenue was less than $1 million, and it had only 17 employees. Last year, Octel had revenues of $250 million, paid $11 million in income taxes, and had 1,567 employees.
Future Prospects
All SBA programs, including the SBIC initiative, have been scrutinized by Congress as part of its reauthorization process. Several years ago, Congress uncovered serious mismanagement and abuses at numerous SBICs, which led to considerable federal funding losses. As a result, the program was suspended briefly during the early 1990s, while oversight was tightened and problems corrected. Today, the program enjoys renewed credibility. Congress is not expected to make changes in this program.
Contacts
A company should make its initial contacts to pursue SBIC financing through its local investment company. Lists of all current SBICs and SSBICs follow. The SBA district offices (a list is found on page 10) and Small Business Development Centers (SBDCs) may be able to link businesses with likely SBIC financiers. For general information on the SBIC program or to find out if any investment companies have been licensed recently in your area, contact the Investment Division of SBA at the number and address below, or call the SBA Answer Desk at 1-800-U-ASK-SBA (TDD users: 202-205-7333). General information also is available through SBA on-line services, at the numbers and address listed below.
Associate Administrator for Investment
U.S. Small Business Administration
Washington, D.C. 20416
202-205-6510 (voice)
202-205-6959 (fax)
SBA Bulletin Board:
1-800-697-4636 (outside D.C.)
401-9600 (D.C. access)
Internet Address:
telnet://sbaonline.sba.gov
http://www.sbaonline.sba.gov
Small Business Investment Companies (SBICs) (as of October 1995) ALABAMA First SBIC of Alabama Mobile, Alabama 205-476-0700 (voice) 205-476-0026 (fax) Hickory Venture Capital Corporation Huntsville, Alabama 205-539-1931 (voice) 205-539-5130 (fax) ALASKA No local SBICs ARIZONA First Commerce & Loan LP Tucson, Arizona 602-298-2500 (voice) 602-745-6112 (fax) First Interstate Equity Corp. Phoenix, Arizona 602-528-6647 (voice) 602-440-1320 (fax) Sundance Venture Partners (main office: Cupertino, CA) Phoenix, Arizona 602-279-1101 (voice) 408-257-8111 (fax) ARKANSAS Small Business Investment Capital, Inc. Little Rock, Arkansas 501-455-6599 (voice) 501-455-6556 (fax) CALIFORNIA BT Capital Corp. (main office: New York, NY) Los Angeles, California 415-424-8000 (voice) Citicorp Venture Capital, Ltd. (main office: New York, NY) Palo Alto, California Developers Equity Capital Corp. Los Angeles, California 310-277-0330 (voice) 310-277-4271 (fax) Draper Associates, LP Redwood City, California 415-599-9000 (voice) 415-599-9726 (fax) First SBIC of California Costa Mesa, CA 714-556-1964 (voice) 714-546-8021 (fax) First SBIC of California (main office: Costa Mesa, CA) Palo Alto, CA 415-424-8011 (voice) 415-424-6830 (fax) First SBIC of California (main office: Costa Mesa, CA) Pasadena, California 818-304-3451 (voice) 818-440-9931 (fax) G C & H Partners San Francisco, California 415-981-5252 (voice) 415-951-3699 (fax) Hall, Morris, & Drufva II, L.P. Laguna Hills, California 714-707-5096 (voice) 714-707-5121 (fax) Imperial Ventures, Inc. Inglewood, California 310-417-5710 (voice) 310-417-5874 (fax) Jupiter Partners San Francisco, California 415-421-9990 (voice) 415-421-0471 (fax) Marwit Capital Corp. Newport Beach, California 714-640-6234 (voice) 714-759-1363 (fax) Merrill, Pickard, Anderson & Eyre I Menlo Park, California 415-854-8600 (voice) 415-854-0345 (fax) New West Partners II San Diego, California 619-457-0723 (voice) 619-457-0829 (fax) Northwest Venture Partners Menlo Park, California 503-223-6622 (voice) Norwest Equity Partners IV Menlo Park, California 503-223-6622 (voice) Norwest Growth Fund, Inc. (Office: Minneapolis, MN) Menlo Park, California 503-223-6622 (voice) Pacific Mezzanine Fund, LP San Francisco, California 415-362-6776 (voice) 415-781-1314 (fax) Ritter Partners Atherton, California 415-854-1555 (voice) 415-854-5015 (fax) Sundance Venture Partners, LP Cupertino, California 408-257-8100 (voice) 408-257-8111 (fax) Union Venture Corp. Los Angeles, California 213-236-5658 (voice) 213-688-0101 (fax) VK Capital Company San Francisco, California 415-391-5600 (voice) 415-397-2744 (fax) COLORADO No local SBICs CONNECTICUT AB SBIC, Inc. Cheshire, Connecticut 203-272-0203 (voice) 203-272-9978 (fax) All State Venture Capital Corporation New Haven, Connecticut 203-787-5029 (voice) 203-785-0018 (fax) Capital Resource Co. of Connecticut West Hartford, Connecticut 203-236-4336 (voice) 203-232-8161 (fax) Financial Opportunities, Inc. Enfield, Connecticut 203-741-4444 (voice) 203-741-9716 (fax) First New England Capital, LP Hartford, Connecticut 203-293-3333 (voice) 203-549-2528 (fax) Marcon Capital Corp. Southport, Connecticut 203-259-7233 (voice) 203-259-9428 (fax) RFE Capital Partners, LP New Canaan, Connecticut 203-966-2800 (voice) 203-966-3109 (fax) DELAWARE No local SBICs DISTRICT OF COLUMBIA Allied Investment Corp, I & II Washington, D.C. 202-331-1112 (voice) 202-659-2053 (fax) Legacy Fund Limited Partnership Washington, D.C. 202-965-2020 (voice) 202-342-7474 (fax) FLORIDA Allied Investment Corporation (office: Washington, DC) Vero Beach, Florida 407-778-5556 (voice) 202-659-2053 (fax) Florida Capital Ventures, Ltd. Tampa, Florida 813-229-2294 (voice) 813-229-2028 (fax) J & D Capital Corp. North Miami, Florida 305-893-0303 (voice) 305-891-2338 (fax) Market Capital Corp. Tampa, Florida 813-247-1357 (voice) 813-248-5531 (fax) Quantum Capital Partners, Ltd. Fort Lauderdale, Florida 305-776-1133(voice) 305-938-9406(fax) Western Financial Capital Corp. N. Miami Beach, Florida 305-933-5858 (voice) 305-931-3054 (fax) GEORGIA Cordova Capital Partners, LP Atlanta, Georgia 404-951-1542 (voice) 404-955-7610 (fax) Investor's Equity, Inc. Atlanta, Georgia 404-266-8300 (voice) North Riverside Capital Corporation Norcross, Georgia 404-446-5556 (voice) 404-446-8627 (fax) HAWAII Bancorp Hawaii SBIC Honolulu, Hawaii 808-521-6411 (voice) 808-537-8557 (fax) IDAHO No local SBICs ILLINOIS Continental Illinois Venture Corp. Chicago, Illinois 312-828-8023 (voice) 312-987-0887 (fax) First Capital Corp. of Chicago Chicago, Illinois 312-732-5400 (voice) 312-732-4098 (fax) Heller Equity Chicago, Illinois 312-441-7200 (voice) 312-441-7378 (fax) Walnut Capital Corp. Chicago, Illinois 312-346-2033 (voice) 312-346-2231 (fax) INDIANA 1st Source Capital Corporation South Bend, Indiana 219-235-2180 (voice) 219-235-2719 (fax) Cambridge Ventures, LP Indianapolis, Indiana 317-469-9704 (voice) 317-469-3926 (fax) Circle Ventures, Inc. Indianapolis, Indiana (317)636-7242(voice) (317)637-7581 (fax) IOWA MorAmerica Capital Corp. Cedar Rapids, Iowa 319-363-8249 (voice) 319-363-9683 (fax) KANSAS Kansas Venture Capital, Inc. Overland Park, Kansas 913-262-7117 (voice) 913-262-3509 (fax) Kansas Venture Capital, Inc. Wichita, Kansas 316-262-1221 (voice) 316-262-0780 (fax) KENTUCKY Mountain Ventures, Inc. London, Kentucky 606-864-5175 (voice) 606-864-5194 (fax) LOUISIANA Premier Venture Capital Corporation Baton Rouge, Louisiana 504-332-4421 (voice) 504-332-4299 (fax) MAINE Maine Capital Corp. Portland, Maine 207-772-1001 (voice) MARYLAND Greater Washington Investments, Inc. Chevy Chase, Maryland 301-656-0626 (voice) 301-656-4053 (fax) MASSACHUSETTS Advent Atlantic Capital Co. Advent Industrial Capital Co. Advent V Capital Co., LP Boston, Massachusetts 617-345-7200 (voice) 617-345-7201 (fax) BancBoston Ventures, Inc. Boston, Massachusetts 617-434-2442 (voice) 617-434-1383 (fax) Business Achievement Corp Newton, Massachusetts 617-965-0550 (voice) 617-345-7201 (voice) Chestnut Capital Int'l II LP Boston, Massachusetts 617-345-7200 (voice) 617-345-7201 (fax) Chestnut Street Partners, Inc. Boston, Massachusetts 617-345-7220 (voice) 617-345-7201 (fax) First Capital Corp. of Chicago (main office: Chicago, Illinois) Boston, Massachusetts 617-457-2500 (voice) 617-457-2506 (fax) LRF Capital, Limited Partnership Newton, Massachusetts 617-964-0049 (voice) 617-965-4100 (fax) Mezzanine Capital Corp Boston, Massachusetts 617-345-7200 (voice) 617-345-7201 (fax) Northeast SBI Corp. Boston, Massachusetts 617-267-3983 (voice) 617-267-3983 (fax) Pioneer Ventures Limited Partnerships Boston, Massachusetts 617-742-7825 (voice) 617-742-7315 (fax) UST Capital Corp. Boston, Massachusetts 617-726-7000 (voice) 617-723-9414 (fax) MICHIGAN The Capital Fund Lansing, Michigan 517-323-7772 (voice) 517-323-1999 (fax) White Pines Capital Corp Ann Arbor, Michigan 313-747-9401 (voice) 313-747-9704 (fax) MINNESOTA FBS SBIC, LP Minneapolis, Minnesota 612-973-0988 (voice) 612-973-0203 (fax) Northland Capital Venture Partnership Duluth, Minnesota 218-722-0545 (voice) 218-722-7241 (fax) Northwest Venture Partners/ Norwest Equity Partners IV/ Norwest Growth Fund, Inc. Minneapolis, Minnesota 612-667-1650(voice) 612-667-1660 (fax) MISSISSIPPI No local SBIC MISSOURI Bankers Capital Corp. Kansas City, Missouri 816-531-1600 (voice) 816-531-1334 (fax) CFB Venture Fund I, Inc. St. Louis, Missouri 314-746-7427 (voice) 314-746-8739 (fax) CFB Venture Fund II, Inc. Kansas City, Missouri 816-234-2357 (voice) 816-234-2333 (fax) MorAmerica Capital Corp (main office: Cedar Rapids, IA) Kansas City, Missouri 816-842-0114 (voice) 816-471-7339 (fax) United Missouri Capital Corp Kansas City, Missouri 816-556-7333 (voice) 816-556-7143 (fax) MONTANA No local SBIC NEBRASKA United Financial Resources Corp. Omaha, Nebraska 402-339-7300 (voice) 402-734-0650 (fax) NEVADA No local SBIC NEW HAMPSHIRE No local SBIC NEW JERSEY Bishop Capital, LP Springfield, New Jersey 201-376-0495 (voice) 201-376-6527 (fax) CIT Group/Venture Capital Livingston, New Jersey 201-740-5429 (voice) 201-740-5555 (fax) ESLO Capital Corp. Newark, New Jersey 201-242-4488 (voice) 201-643-6062 (fax) Fortis Capital Corporation Edison, New Jersey 908-603-8500 (voice) 908-603-8250 (fax) Tappan Zee Capital Corp Little Falls, New Jersey 201-256-8280 (voice) 201-256-2841 (fax) NEW MEXICO No local SBIC NEW YORK 399 Venture Partners New York, New York 212-559-1127 (voice) 212-888-2940 (fax) ASEA-Harvest Partners II New York, New York 212-838-7776 (voice) 212-593-0734 (fax) Argentum Capital Partners, LP New York, New York 212-949-8272 (voice) 212-949-8294 (fax) Atalanta Investment Co., Inc. New York, New York 212-956-9100 (voice) 212-956-9103 (fax) BT Capital Corp. New York, New York 212-454-1903 (voice) 212-454-2421 (fax) Barclays Capital Investors Corp. New York, New York 212-412-3937 (voice) 212-412-6780 (fax) CB Investors, Inc. New York, New York 212-286-3222 (voice) 212-983-0626 (fax) CIBC Wood Gundy Ventures New York, New York 212-856-3713 (voice) 212-697-1554 (fax) CMNY Capital II, LP New York, New York 212-909-8432 (voice) 212-980-2630 (fax) Chase Manhattan Capital Corporation New York, New York 212-552-6275 (voice) 212-552-2807 (fax) Chemical Venture Capital Associates New York, New York 212-270-3220 (voice) 212-270-2327 (fax) Citicorp Venture Capital, Ltd. New York, New York 212-559-1127 (voice) 212-527-2496 (fax) Edwards Capital Company New York, New York 212-686-5449 (voice) 212-213-6234 (fax) Exeter Venture Leaders, LP New York, New York 212-872-1170 (voice) 212-872-1198 (fax) Fifty-Third Street Ventures, LP Cold Spring, New York 914-265-4244 (voice) 914-265-4158 (fax) First Wall Street SBIC, LP New York, New York 212-742-3770 (voice) 212-742-3776 (fax) Fundex Capital Corp. Great Neck, New York 516-466-8551 (voice) 516-466-0180 (fax) Genesee Funding, Inc. Rochester, New York 716-272-2332 (voice) 716-272-2396 (fax) IBJS Capital Corp. New York, New York 212-858-2000 (voice) 212-858-2768 (fax) InterEquity Capital Partners New York, New York 212-779-2022 (voice) 212-779-2103 (fax) JP Morgan Investment Corp New York, New York 212-483-2323 (voice) KOCO Capital Company, LP Mount Kisco, New York 212-397-1800 (voice) 212-397-1815 (fax) Kwiat Capital Corp. New York, New York 212-223-1111 (voice) 212-223-2796 (fax) M&T Capital Corp. Buffalo, New York 716-848-3800 (voice) 716-848-3424 (fax) NYBDC Capital Corp. Albany, New York 518-463-2268 (voice) 518-463-0240 (fax) NatWest USA Capital Corp New York, New York 212-602-2149 (voice) 212-602-2149 (fax) Norwood Venture Corp. New York, New York 212-869-5075 (voice) 212-869-5331 (fax) Paribas Principal Incorporated New York, New York 212-841-2000 (voice) 212-841-2146 (fax) Pyramid Ventures, Inc. New York, New York 212-250-9571 (voice) 212-250-7651 (fax) R&R Financial Corp. New York, New York 212-356-1400 (voice) 212-356-0900 (fax) Rand SBIC, Inc. Buffalo, New York 716-853-0802 (voice) 716-854-8480 (fax) Sterling Commercial Capital Great Neck, New York 516-482-7374 (voice) 516-487-0781 (fax) TLC Funding Corp. Tarrytown, New York 914-332-5200 (voice) 914-332-5660 (fax) Tappan Zee Capital Corp New City, New York 914-634-8890 (voice) Vega Capital Corp. Armonk, New York 914-273-1025 (voice) 914-273-1028 (fax) Winfield Capital Corp. White Plains, New York 914-949-2600 (voice) 914-949-7195 (fax) NORTH CAROLINA First Union Capital Partners Charlotte, North Carolina 704-374-6487 (voice) 704-374-6711 (fax) NationsBanc Capital Corp (main office: Dallas, Texas) Charlotte, North Carolina 704-386-8063 (voice) 704-386-6432 (fax) NationsBanc SBIC Corp. Charlotte, North Carolina 704-386-7720 (voice) 704-386-6662 (fax) Springdale Venture Partners Charlotte, North Carolina 704-344-8290 (voice) 704-386-6695 (fax) NORTH DAKOTA No local SBIC OHIO Banc One Capital Partners Columbus, Ohio Clarion Capital Corp. Cleveland, Ohio 216-687-1096 (voice) 216-694-3545 (fax) Key Equity Capital Corp Cleveland, Ohio 216-689-5776 (voice) 216-689-3204 (fax) National City Capital Corp Cleveland, Ohio 216-575-2491 (voice) 216-575-3355 (fax) OKLAHOMA Alliance Business Investment Tulsa, Oklahoma 918-584-3581 (voice) 918-582-3403 (fax) BancFirst Investment Corp. Oklahoma City, Oklahoma 405-270-1000 (voice) 405-270-1089 (fax) OREGON Northern Pacific Capital Corp Portland, Oregon 503-241-1255 (voice) 503-299-6653 (fax) U.S. Bancorp Capital Corp Portland, Oregon 503-275-5860 (voice) 503-275-7565 (fax) PENNSYLVANIA CIP Capital LP Malvern, Pennsylvania 215-695-2066 (voice) 215-695-8388 (fax) Enterprise Venture Capital Corp. ofPennsylvania Johnstown, Pennsylvania 814-535-7597 (voice) 814-535-8677 (fax) Fidelcor Capital Corp. Philadelphia, Pennsylvania 215-985-3722 (voice) 215-985-7282 (fax) First SBIC of California (main office: Costa Mesa, CA) Washington, Pennsylvania 412-223-0707 (voice) 714-546-8021 (fax) Meridian Capital Corp. Reading, Pennsylvania 215-655-2924 (voice) 215-655-1908 (fax) Meridian Venture Partners Radnor, Pennsylvania 215-254-2999 (voice) 215-254-2996 (fax) PNC Capital Corp. Pittsburgh, Pennsylvania 412-762-2248 (voice) 412-762-6233 (fax) RHODE ISLAND Domestic Capital Corp. Cranston, Rhode Island 401-946-3310 (voice) 410-943-6708 (fax) Fleet Venture Resources, Inc. Providence, Rhode Island 401-278-6770 (voice) 401-278-6387 (fax) Moneta Capital Corp. Providence, Rhode Island 401-454-7500 (voice) 401-455-3636 (fax) NYSTRS/NV Capital, LP Providence, Rhode Island 401-278-5597 (voice) 401-278-6387 (fax) Richmond Square Capital Corporation Providence, Rhode Island 401-521-3000 (voice) 401-751-3940 (fax) Wallace Capital Corp. Providence, Rhode Island 401-273-9191 (voice) 401-273-9648 (fax) SOUTH CAROLINA Charleston Capital Corporation Charleston, South Carolina 803-723-6464 (voice) 803-723-1047 (fax) Floco Investment Company Scranton, South Carolina 803-389-2731 (voice) 803-389-4199 (fax) Lowcountry Investment Corp Charleston, South Carolina 803-554-9880 (voice) 803-745-2730 (fax) TENNESSEE Byrd Business Investment, LP Nashville, Tennessee 615-383-8673 (voice) 615-383-8693 (fax) Sirrom Capital, LP Nashville, Tennessee 615-256-0701 (voice) 615-726-1208 (fax) TEXAS AMT Capital, Ltd. Dallas, Texas 214-905-9760 (voice) 214-905-9761 (fax) Alliance Business Investment Co. (main office: Tulsa, OK) Houston, Texas 713-224-8224 (voice) 713-659-8070 (fax) Banc One Capital Partners Corp. Dallas, Texas 214-979-4360 (voice) 214-979-4355 (fax) Capital Southwest Venture Corp. Dallas, Texas 214-233-8242 (voice) 214-233-7362 (fax) Catalyst Fund, Ltd. Houston, Texas 713-623-8133 (voice) 713-623-0473 (fax) Central Texas SBI Corporation Dallas, Texas 214-508-0900 (voice) 214-508-0604 (fax) Charter Venture Group, Inc Houston, Texas 713-622-7500 (voice) 713-552-8446 (fax) Citicorp Venture Capital, Ltd. (main office: New York, NY) Dallas, Texas 214-880-9670 (voice) 214-953-1495 (fax) Ford Capital, Ltd. Dallas, Texas 214-871-5177 (voice) 214-871-5199 (fax) HCT Capital Corp. Fort Worth, Texas 817-763-8706 (voice) 817-377-8049 (fax) Houston Partners, SBIP Houston, Texas 713-222-8600 (voice) 713-222-8932 (fax) Jiffy Lube Capital Corporation Houston, Texas 713-546-8910 (voice) 713-546-4154 (fax) Mapleleaf Capital Ltd. Dallas, Texas 214-239-5650 (voice) 214-701-0024 (fax) NationsBanc Capital Corp Dallas, Texas 214-508-0900 (voice) 214-508-0985 (fax) SBI Capital Corp. Houston, Texas 713-975-1188 (voice) 713-975-1302 (fax) Stratford Capital Group, Inc. Dallas, Texas 214-740-7377 (voice) 214-740-7340 (fax) UNCO Ventures, Ltd. Houston, Texas 713-622-9595 (voice) 713-622-9007 (fax) Ventex Partners, Ltd. Houston, Texas 713-659-7860 (voice) 713-659-7855 (fax) Victoria Capital Corp. Victoria, Texas 512-573-5151 (voice) 512-574-5236 (fax) Victoria Capital Corp. (main office: Victoria, Texas) San Antonio, Texas 210-736-4233 (voice) 210-736-5449 (fax) Western Financial Capital Corporation Dallas, Texas 214-380-0044 (voice) 214-380-1371 (fax) UTAH First Security Bus. Investment Corp. Salt Lake City, Utah 801-246-5737 (voice) 801-246-5424 (fax) Wasatch Venture Corporation Salt Lake City, Utah 801-524-8939 (voice) 801-524-8941 (fax) VERMONT Green Mountain Capital, LP Waterbury, Vermont 802-244-8981 (voice) 802-244-8990 (fax) Queneska Capital Corporation Burlington, Vermont 802-865-1806 (voice) 802-865-1891 (fax) VIRGINIA Rural America Fund, Inc. Herndon, Virginia 703-709-6750 (voice) 703-709-6779 (fax) Walnut Capital Corp. Vienna, Virginia 703-448-3771 (voice) 703-448-7751 (fax) WASHINGTON No local SBIC WEST VIRGINIA Anker Capital Corporation/ WestVen Limited Partnership Charleston, West Virginia 304-344-1794 (voice) 304-344-1798 (fax) WISCONSIN Banc One Venture Corp. Milwaukee, Wisconsin 414-765-2274 (voice) 414-765-2235 (fax) Bando-McGlocklin SBIC Brookfield, Wisconsin 414-784-9010 (voice) 414-784-3426 (fax) Capital Investments, Inc. Milwaukee, Wisconsin 414-273-6560 (voice) 414-273-0530 (fax) M&I Ventures Corp. Milwaukee, Wisconsin 414-765-7910 (voice) 414-765-7850 (fax) MorAmerica Capital Corp Milwaukee, Wisconsin 414-276-3839 (voice) 414-276-1885 (fax) Polaris Capital Corp. Milwaukee, Wisconsin 414-789-5780 (voice) 414-789-5799 (fax) WYOMING No local SBIC
Specialized Small Business Investment Companies (SSBICs) (as of October 1995) ALABAMA Alabama Capital Corporation 16 Midtown Park East Mobile, AL 36606 205-476-0700 (voice) 205-476-0026 (fax) Alabama Small Business Investment Company 1732 5th Avenue North Birmingham, AL 35203 205-324-5231 (voice) 205-324-5234 (fax) FJC Growth Capital Corp 200 West Court Sq, Ste 750 Huntsville, AL 35801 205-922-2918 (voice) 205-922-2909 (fax) ALASKA No local SSBIC ARIZONA Small Business Inv. Capital, 12103 Interstate 30 Mail: P.O. Box 3627 Little Rock, AR 72203 501-455-6599 (voice) 501-455-6556 (fax) ARKANSAS No local SSBIC CALIFORNIA AVI Capital, L.P. One First Street, Suite 12 Los Altos, CA 94022 415-949-9862 (voice) 415-949-8510 (fax) Allied Business Investors, Inc. 428 S. Atlantic Blvd., Suite 201 Monterey Park, CA 91754 818-289-0186 (voice) 818-289-2369 (fax) Ally Finance Corp. 9100 Wilshire Blvd., Suite 408 Beverly Hills, CA 90212 310-550-8100 (voice) 310-550-6136 (fax) Asian American Capital Corp 1251 West Tennyson Rd, Ste 4 Hayward, CA 94544 510-887-6888 (voice) 510-782-6432 (fax) Aspen Ventures West II, L.P. 1000 Fremont Avenue, Suite V Los Altos, CA 94024 415-948-8347 (voice) 415-941-7764 (fax) Astar Capital Corp. 9537 E. Gidley Street Temple City, CA 91780 818-448-6642 (voice) 818-443-5874 (fax) BankAmerica Ventures 950 Tower Lane, Suite 700 Foster City, CA 94404 714-556-1964 (voice) 714-546-8021 (fax) Bay Partners SBIC, L.P. 10600 North De Anza Blvd Suite 100 Cupertino, CA 95014 408-725-2444 (voice) 408-446-4502 (fax) Bentley Capital 592 Vallejo Street, Suite #2 San Francisco, CA 94133 415-362-2868 (voice) 415-398-8209 (fax) Best Finance Corporation 4929 W. Wilshire Blvd, Suite 407 Los Angeles, CA 90010 213-731-2268 (voice) 213-937-6393 (fax) Calsafe Capital Corp. 245 East Main Street, Suite 107 Alhambra, CA 91801 818-289-3400 (voice) 818-300-8025 (fax) Charterway Investment Corporation One Wilshire Building 624 South Grand Ave, Ste 1600 Los Angeles, CA 90017 213-689-9107 (voice) 213-689-9108 (fax) Far East Capital Corp. 977 N. Broadway, Suite 401 Los Angeles, CA 90012 213-687-1361 (voice) 213-626-7497 (fax) First American Capital Funding 10840 Warner Ave, Suite 202 Fountain Valley, CA 92708 714-965-7190 (voice) 714-965-7193 (fax) Fulcrum Venture Capital Corp 300 Corporate Pointe, Ste 380 Culver City, CA 90230 213-299-8016 (voice) 213-299-8059 (fax) Kline Hawkes California SBIC 11726 San Vicente Blvd, Ste 300 Los Angeles, CA 90049 310-442-4700 (voice) 310-442-4707 (fax) LaiLai Capital Corp. 223 E. Garvey Ave, Suite 228 Monterey Park, CA 91754 818-288-0704 (voice) 818-288-4101 (fax) Magna Pacific Investments 330 North Brand Blvd, Ste 670 Glendale, CA 91203 818-547-0809 (voice) 818-547-9303 (fax) Myriad Capital, Inc. 701 S. Atlantic Blvd, Ste 302 Monterey Park, CA 91754 818-570-4548 (voice) 818-570-9570 (fax) Novus Ventures, L.P. 20111 Stevens Creek Boulevard Suite 130 Cupertino, CA 95014 408-252-3900 (voice) 408-252-1713 (fax) Opportunity Capital Corporation One Fremont Place 39650 Liberty Street, Suite 425 Fremont, CA 94538 510-651-4412 (voice) 510-651-0128 (fax) Opportunity Capital Partners II 39650 Liberty Street, Suite 425 Fremont, CA 94538 510-651-4412 (voice) 510-651-0128 (fax) Positive Enterprises, Inc. 1489 Webster Street, Suite 228 San Francisco, CA 94115 415-885-6600 (voice) 415-928-6363 (fax) San Joaquin Business Investment Group Inc 1900 Mariposa Mall, Suite 100 Fresno, CA 93721 209-233-3580 (voice) 209-233-3709 (fax) Sorrento Growth Partners I 4225 Executive Sq, Ste 1450 San Diego, CA 92037 619-452-6400 (voice) 619-452-7607 (fax) South Bay Capital Corporation 5325 E. Pacific Coast Highway Long Beach, CA 90804 310-515-1033 (voice) 310-324-9273 (fax) Walden-SBIC, L.P. 750 Battery Street, 7th Floor San Francisco, CA 94111 415-391-7225 (voice) 415-391-7262 (fax) Western General Capital Corp 13701 Riverside Dr, Suite 610 Sherman Oaks, CA 91423 818-986-5038 (voice) 818-905-9220 (fax) COLORADO Hanifen Imhoff Mezzanine Fund 1125 17th Street, Suite 1600 Denver, CO 80202 303-291-5209 (voice) 303-291-5327 (fax) CONNECTICUT Canaan SBIC, L.P. 105 Rowayton Avenue Rowayton, CT 06853 203-855-0400 (voice) 203-854-9117 (fax) Capital Resource Co. of CT 2558 Albany Avenue West Hartford, CT 06117 203-236-4336 (voice) 203-232-8161 (fax) Central Texas SBI Corporation One Canterbury Green 201 Broad Street, 2nd Floor Stamford, CT 06901 203-352-4056 (voice) 203-352-4184 (fax) TSG Ventures, Inc. 177 Broad Street, 12th Floor Stamford, CT 06901 203-406-1500 (voice) 203-406-1590 (fax) DELAWARE PNC Capital Corp. 300 Delaware Ave, Suite 304 Wilmington, DE 19801 302-427-5895 (voice) 302-427-5810 (fax) DISTRICT OF COLUMBIA Allied Capital Financial Corp. 1666 K Street, N.W., Suite 901 Washington, DC 20006 202-331-1112 (voice) 202-659-2053 (fax) Broadcast Capital, Inc. 1771 N Street, N.W., Suite 421 Washington, DC 20036 202-429-5393 (voice) 202-496-9259 (fax) First Legacy Fund, Inc. 1400 34th Street, N.W. Washington, DC 20007 202-659-1100 (voice) 202-342-7474 (fax) Minority Broadcast Investment 1001 Connecticut Avenue, N.W. Suite 622 Washington, DC 20036 202- 293-1166 (voice) 202-293-1181 (fax) FLORIDA BAC Investment Corp. 6600 N.W. 27th Avenue Miami, FL 33147 305-693-5919 (voice) 305-693-7450 (fax) GEORGIA First Growth Capital, Inc. P.O. Box 815 I-75 & GA 42 Best Western Plaza Forsyth, GA 31029 912-994-9260 (voice) 912-994-1280 (fax) Renaissance Capital Corp 34 Peachtree Street, NW, Suite 2610 Atlanta, GA 30303 404-658-9061 (voice) 404-658-9064 (fax) HAWAII Pacific Venture Capital, Ltd. 222 South Vineyard Street PH.1 Honolulu, HI 96813 808-521-6502 (voice) 808-521-6541 (fax) IDAHO No local SSBIC ILLINOIS Combined Fund, Inc. 915 East Hyde Park Blvd. Chicago, IL 60615 312-363-0300 (voice) 312-363-6816 (fax) Neighborhood Fund, Inc. 25 E. Washington Blvd. Suite 2015 Chicago, IL 60649 312-753-5670 (voice) 312-493-6609 (fax) Peterson Finance and Investment Company 3300 W Peterson Ave, Suite A Chicago, IL 60659 312-539-0502 (voice) 312-583-6714 (fax) Polestar Capital, Inc. 180 N. Michigan Ave, Ste 1905 Chicago, IL 60601 312-984-9875 (voice) 312-984-9877 INDIANA No local SSBIC IOWA No local SSBIC KANSAS KCEP I, L.P. 4200 Somerset Dr, Suite 101 Prairie Village, KS 66208 913-649-1771 (voice) 913-649-2125 (fax) KENTUCKY Equal Opportunity Finance 420 S. Hurstbourne Pkwy, Suite 201 Louisville, KY 40222 502-423-1943 (voice) 502-423-1945 LOUISIANA First Commerce Capital, Inc. 821 Gravier Street, Suite 1027 New Orleans, LA 70119 504-561-1491 (voice) 504-561-1779 (fax) MAINE North Atlantic Venture Fund II 70 Center Street Portland, ME 04101 207-772-1001 (voice) 207-772-3257 (fax) MARYLAND Anthem Capital, L.P. 29 West Susquahanna Ave, Suite 400 Baltimore, MD 21204 410-828-7292 (voice) 410-828-6084 (fax) Security Financial and Investment Corp. 7720 Wisconsin Ave, Suite 207 Bethesda, MD 20814 301-951-4288 (voice) Syncom Capital Corp. 8401 Colesville Road, #300 Silver Spring, MD 20910 301-608-3207 (voice) MASSACHUSETTS Argonauts MESBIC Corp 929 Worcester Road Framingham, MA 01701 508-820-3430 (voice) 508-872-3741 (fax) Commonwealth Enterprise Fund 10 Post Office Sq, Ste 1090 Boston, MA 02109 617-482-1881 (voice) 617-482-7129 (fax) Seacoast Capital Partners, L.P. 55 Ferncroft Road Danvers, MA 01923 508-777-3866 (voice) 508-750-1301 (fax) Zero Stage Capital V, L.P. Kendall Square 1010 Main Street, 17th Floor Cambridge, MA 02142 617-876-5355 (voice) 617-876-1248 (fax) MICHIGAN Dearborn Capital Corp. c/o Ford Motor Credit Corp The American Road Dearborn, MI 48121 313-337-8577 (voice) 313-390-4051 (fax) Metro-Detroit Investment Co. 30777 Northwestern Hwy., #300 Farmington Hill, MI 48334 810-851-6300 (voice) 810-851-9551 (fax) Motor Enterprises, Inc. General Motors Corp 3044 W. Grand Blvd., Rm. 13-147 Detroit, MI 48202 313-556-4273 (voice) 313-974-4499 (fax) MINNESOTA Capital Dimensions Ventures Fund Two Appletree Square, Ste 335 Minneapolis, MN 55425 612-854-3007 (voice) 612-854-6657 (fax) Milestone Growth Fund, Inc. Plaza VII 45 South 7th Street, Suite 2326 Minneapolis, MN 55402 612-338-0090 (voice) 612-338-1172 (fax) Piper Jaffray Healthcare Capital LP 222 South 9th Street Minneapolis, MN 55402 612-342-6335 (voice) 612-342-1036 (fax) MISSISSIPPI Sun-Delta Capital Access Center 819 Main Street Greenville, MS 38701 601-335-5291 (voice) 601-335-5295 (fax) MISSOURI Gateway Partners, L.P. 8000 Maryland Ave, Ste 1190 St. Louis, MO 63105 314-721-5707 (voice) 314-721-5135 (fax) MONTANA No local SSBIC NEBRASKA No local SSBIC NEVADA Atalanta Investment Company 601 Fairview Blvd. Incline Village, NV 89451 702-833-1836 (voice) 702-833-1890 (fax) NEW HAMPSHIRE No local SSBIC NEW JERSEY Capital Circulation Corporation 2035 Lemoine Ave, 2nd Floor Fort Lee, NJ 07024 201-947-8637 (voice) 201-585-1965 (fax) DFW Capital Partners, L.P. Glenpointe Center East 300 Frank W. Burr Blvd., 5th Floor Teaneck, NJ 07666 212-509-5580 (voice) 212-363-7965 (fax) MidMark Capital, L.P. 466 Southern Boulevard Chatham, NJ 07928 201-822-2999 (voice) 201-822-8911 (fax) Rutgers Minority Investment 180 University Ave, 3rd Floor Newark, NJ 07102 201-648-5287 (voice) 201-648-1110 (fax) Transpac Capital Corporation 1037 Route 46 East Clifton, NJ 07013 201-470-8855 (voice) 201-470-8827 (fax) NEW MEXICO No local SBIC NEW YORK American Asian Capital Corp 130 Water Street, Suite 6-L New York, NY 10005 212-422-6880 (voice) Capital Investors & Management Corporation 210 Canal Street, Suite 611 New York, NY 10013 212-964-2480 (voice) 212-349-9160 (fax) East Coast Venture Capital 313 West 53rd St, Third Floor New York, NY 10019 212-245-6460 (voice) 212-265-2962 (fax) Elk Associates Funding Corp 747 Third Avenue New York, NY 10017 212-421-2111 (voice) 212-421-3488 (fax) Empire State Capital Corp 170 Broadway, Suite 1200 New York, NY 10038 212-513-1799 (voice) 212-513-1892 (fax) Eos Partners SBIC, L.P. 520 Madison Ave, 42nd Floor New York, NY 10022 212-832-5814 (voice) 212-832-5805 (fax) Esquire Capital Corp. 69 Veterans Memorial Hgwy Commack, NY 11725 516-462-6946 (voice) 516-864-8152 (fax) Exeter Equity Partners, L.P. 10 East 53rd Street New York, NY 10022 212-872-1170 (voice) 212-872-1198 (fax) Exim Capital Corp. 241 5th Avenue, 3rd Floor New York, NY 10016 212-683-3375 (voice) 212-689-4118 (fax) Fair Capital Corp. 210 Canal Street, Suite 611 New York, NY 10013 212-964-2480 (voice) 212-349-9160 (fax) First County Capital Inc. 135-14 Northern Blvd., 2nd Floor Flushing, NY 11354 718-461-1778 (voice) 718-461-1835 (fax) First Pacific Capital Corp. 273 Wyckoff Avenue Brooklyn, NY 11237 718-381-5095 (voice) 718-381-5192 (fax) Flushing Capital Corporation 39-06 Union Street, Room 202 Flushing, NY 11354 718-886-5866 (voice) 718-939-7761 (fax) Freshstart Venture Capital Corp. West 53rd Street, 3rd Floor New York, NY 10019 212-265-2249 (voice) 212-265-2962 (fax) Furman Selz SBIC, L.P. 230 Park Avenue New York, NY 10169 212-309-8200 (voice) 212-692-9147 (fax) Hanam Capital Corp. 38 West 32th Street, Suite 1512 New York, NY 10001 212-564-5225 (voice) 212-564-5307 (fax) Ibero American Investors Corp. 104 Scio Street Rochester, NY 14604 716-262-3440 (voice) 716-262-3441 (fax) Jardine Capital Corp. 105 Lafayette Street, Unit 204 New York, NY 10013 212-941-0993 (voice) 212-941-0998 (fax) Medallion Funding Corporation 205 E. 42nd Street, Suite 2020 New York, NY 10017 212-682-3300 (voice) 212-983-0351 (fax) Mercury Capital, L.P. 650 Madison Avenue New York, NY 10022 212-838-0888 (voice) 212-838-7598 (fax) Needham Capital SBIC, L.P. 400 Park Avenue New York, NY 10022 212-708-0600 (voice) 212-371-8418 (fax) Odyssey Partners SBIC, L.P. 31 West 52nd Street New York, NY 10019 212-708-0641 (voice) 212-708-0735 (fax) Pierre Funding Corp. 805 Third Avenue, 6th Floor New York, NY 10022 212-888-1515 (voice) 212-688-4252 (fax) Situation Ventures Corporation 56-20 59th Street Maspeth, NY 11378 718-894-2000 (voice) 718-326-4642 (fax) Square Deal Venture Capital Corp. 766 N. Main Street New Square, NY 10977 914-354-7917 (voice) Transportation Capital Corp. 315 Park Ave South, 10th Floor New York, NY 10010 212-598-3225 (voice) 212-598-3102 (fax) Triad Capital Corp. of NY 305 Seventh Ave, 20th Floor New York, NY 10001 212-243-7360 (voice) 212-243-7647 (fax) Trusty Capital Inc. 350 Fifth Avenue, Suite 2026 New York, NY 10118 212-736-7653 (voice) 212-629-3019 (fax) United Capital Investment Corp. 60 East 42nd Street, Suite 1515 New York, NY 10165 212-682-7210 (voice) 212-573-6352 (fax) Venture Opportunities Corp 150 East 58th Street, 16th Floor New York, NY 10155 212-832-3737 (voice) 212-223-4912 (fax) NORTH CAROLINA Blue Ridge Investors Ltd. 300 N. Greene Street, Suite 210 Greensboro, NC 27401 910-370-076 (voice) 910-274-4984 (fax) NORTH DAKOTA No local SSBIC OHIO Cactus Capital Company 6660 N. High Street, #1B Worthington, OH 43085 614-436-4060 (voice) Center City MESBIC 8 North Main Street Dayton, OH 45402 513-226-0457 (voice) 513-222-7035 (fax) River Cities Capital Fund L.P. 221 East Fourth St, Suite 2250 Cincinnati, OH 45202 512-621-9700 (voice) 512-579-8939 (fax) OKLAHOMA No local SSBIC OREGON Shaw Venture Partners III, L.P. 400 Southwest Sixth Ave, Suite 1100 Portland, OR 97204 503-228-4884 (voice) 503-227-2471 (fax) PENNSYLVANIA Greater Philadelphia Venture Capital 351 E. Conestoga Rd, Rm 203 Wayne, PA 19087 215-688-6829 (voice) 215-254-8958 (fax) RHODE ISLAND Fleet Equity Partners VI, L.P. 111 Westminister, 4th Floor Providence, RI 02903 401-278-6770 (voice) 401-278-6387 (fax) SOUTH CAROLINA No local SSBIC SOUTH DAKOTA No local SSBIC TENNESSEE Equitas, L.P. 2000 Glen Echo Road, Suite 100 Nashville, TN 37215 615-383-8673 (voice) 615-383-8693 (fax) International Paper Cap. Formation International Place II 6400 Poplar Avenue Memphis, TN 38197 901-763-6282 (voice) 901-763-7278 (fax) Tennessee Venture Capital Corp. 201 4th Avenue, North P.O. Box 305110 Nashville, TN 37230 615-748-4291 (voice) 615-259-4119 (fax) Valley Capital Corp. Suite 212, Krystal Building 100 W. Martin Luther King Blvd. Chattanooga, TN 37402 615-265-1557 (voice) 615-265-0619 (fax) West Tennessee Venture Capital 5 North Third Street Memphis, TN 38103 901-522-9237 (voice) 901-527-6091 (fax) TEXAS Alliance Enterprise Corp N. Central Plaza 1, Suite 710 12655 North Central Expwy Dallas, TX 75243 214-991-1597 (voice) 214-991-1647 (fax) Chen's Financial Group, Inc. 10101 Southwest Freeway, Suite 370 Houston, TX 77074 713-772-8868 (voice) 713-772-2168 (fax) Houston Partners, SBIP Capital Center Penthouse 8th Floor, 401 Louisiana Houston, TX 77002 713-222-8600 (voice) 713-222-8932 (fax) MESBIC Financial Corp. of Houston 401 Studewood, Suite 200 Houston, TX 77007 713-869-4061 (voice) 713-869-4462 (fax) MESBIC Ventures, Inc. N. Central Plaza 1, Suite 710 12655 North Central Exprwy Dallas, TX 75243 214-991-1597 (voice) 214-991-1647 (fax) North Texas MESBIC, Inc. 12770 Coit Road, Suite 240 Dallas, TX 75251 214-991-8060 (voice) 214-991-8061 (fax) PMC Investment Corporation 17290 Preston Road, Suite 300 Dallas, TX 75252 214-380-0044 (voice) 214-380-1371 (fax) SBIC Partners, L.P. 201 Main Street, Suite 2302 Fort Worth, TX 76102 714-729-3222 (voice) 714-729-3226 (fax) Tower Ventures, Inc. N. Central Plaza 1, Suite 710 12655 North Central Expwy Dallas, TX 75243 214-991-1597 (voice) 214-991-1647 (fax)United Oriental Capital Corp 908 Town & Country Blvd Suite 310 Houston, TX 77024 713-461-3909 (voice) 713-465-7559 (fax) UTAH No local SSBIC VERMONT No local SSBIC VIRGINIA Continental SBIC 4141 N. Henderson Road, Suite 8 Arlington, VA 22203 703-527-5200 (voice) 703-527-3700 (fax) East West United Investment Co. 1568 Spring Hill Rd.., Suite 100 McLean, VA 22102 703-442-0150 (voice) 703-442-0156 (fax) WASHINGTON Pacific Northwest Partners SBIC Koll Center Bellevue, Ste 800, 500 - 108th Avenue, N.E. Bellevue, WA 98004 206-646-7357 (voice) 206-646-7356 (fax) WEST VIRGINIA Shenandoah Venture Capital 208 Capital Street, Suite 300 Charleston, WV 25301 304-344-1796 (voice) 304-344-1798 (fax) WestVen Limited Partnership 208 Capital Street Suite 300 Charleston, WV 25301 304-344-1794 (voice) 304-344-1798 (fax) WISCONSIN Future Value Ventures, Inc Plaze East Office Center 330 East Kibourn Ave., Suite 711 Milwaukee, WI 53203 414-278-0377 (voice) 414-278-7321 (fax) WYOMING No local SSBIC
Small Business Innovation Research (SBIR)
| Objective: | To encourage technological innovation in small businesses and ease the transfer of federally-developed technology into the private sector. |
| Eligibility: | Independently-owned, for-profit companies with 500 employees or less. |
| Cost: | No application fee. |
| Services: | Financial grants and development contracts. |
Description
The Small Business Innovation Research (SBIR) program is designed to ensure that small, high- technology firms have access to federal research and development (R&D) funds, so that they may pursue advanced technologies and their commercial applications. The program requires every federal agency with a budget of more than $100 million devoted to outside R&D activities to reserve at least two percent of those funds for small businesses. These resources are disbursed as grants and development contracts.
The SBIR program is divided into three distinct phases, each denoting a different stage of development for a given project. In Phase I, awards are made based on written proposals submitted by applicants in response to an SBIR solicitation from a participating federal agency. These Phase I awards are for six-month studies of technical feasibility, and may be in the form of contracts or grants ranging from $55,000 to $100,000. Phase II awards go to the most promising projects receiving Phase I money. Phase II funding can range from $150,000 to $750,000, and is intended for prototype development projects lasting approximately two years. Phase III does not involve any SBIR funding; instead, participating small businesses work to acquire outside capital needed to convert the prototype into a commercial product. Recipients of SBIR awards may subcontract no more than one third of a Phase I award and no more than one half of a Phase II award. All technology developed with SBIR funds by a small business remains the property of that firm.
The Small Business Administration (SBA) is responsible for overall SBIR implementation. Eleven other federal agencies participate in the program. They include:
Each participating agency determines its own technological needs and publishes SBIR Phase I proposal solicitations that meet those needs. Most agencies put out only one solicitation per year, although the largest — the Departments of Defense and Health and Human Services — often offer two. Generally, agencies with distinct missions, such as the Departments of Transportation and Defense, will ask for solutions to problems or ways to exploit opportunities in their fields. Agencies with more general missions, such as the National Science Foundation, usually seek projects to increase knowledge in broad categories. In both cases, agencies place great weight on originality and innovation when evaluating proposals. Firms also have a greater chance of receiving an SBIR award if their technical capabilities, as well as their project proposals, correspond closely to the R&D needs of the soliciting agency.
Solicitations almost always fall into one of three categories: problem solving, research, or product creation. Project proposals should carefully follow the instructions outlined in the solicitation document,
detailing the firm's technical approach to solving the problem described. As a general rule, a proposal should answer the four following questions.
A company that receives a Phase I award is invited by the agency to apply for a Phase II award. To do so, the applicant must submit another proposal, this time detailing what Phase II of the project will involve. Specific requirements for the Phase II proposal vary with agency. Only Phase I recipients are eligible to apply for Phase II awards. Success rates for applicants may vary from agency to agency. However, the overall success rate for Phase I applicants is 12.6 percent. For Phase II applicants, the award level rises to 41.7 percent.
Fiscal 1983-1992 Phase I and II Awards by Technology
Area and Agency
(in thousands of dollars)
SOURCE: National Institute of Standards and Technology.
Impact
Since fiscal 1983, the SBIR program provided 18,824 Phase I awards and 6,078 Phase II awards, totaling more than $3.2 billion in grants and contracts to small businesses. In fiscal 1993 alone, SBIR assistance derived from all 11 participating departments totaled $708.6 million. This program has helped American industry advance an assortment of new technologies and products in such areas as advanced computer technology, biotechnology, optics, and chemical process technology.
Success Stories
1) Transitions Research Corporation in Danbury, Connecticut, has received a total of 13 SBIR awards from the Department of Defense for production of mobile robots for use in the service sector. One of the products resulting from these awards, LABMATE, is a mobile robotic research base that is used around the world by robot, artificial intelligence, and computer technology researchers. SBIR assistance also led to the development of Autoscript II, a robotic pharmacist able to work in mail order pharmaceutical operations. The company has built mobile robots for commercial cleaning and institutional material transport purposes. Others robots serve as aides for the elderly and infirm.
2) Since 1987, SI Diamond Technology, Inc. in Houston, Texas, has secured 37 SBIR awards from five federal agencies: Departments of Defense, Energy, Health and Human Services, and NASA and the National Science Foundation. Most awards developed technology involving the use of manufactured diamonds to extend the life or improve the performance of a variety of products. Among this technology's wide array of applications, it can be used to construct flat panel displays that are brighter than ones typically used and that require less energy to operate. The technology also increases the durability of other products, including auto parts, drill bits, and ball bearings.
Future Prospects
The 103rd Congress, recognizing the value of the SBIR program, increased the SBIR share of each agencies' extramural R&D budget. The 104th Congress is not expected to make any programmatic changes, although the R&D funding base at many of the participating agencies likely will be cut, reducing the overall amount earmarked for SBIR activities.
Contacts
A manufacturer interested in the SBIR program can contact any department listed below for information about research topics. The SBA maintains a master list of all agency solicitations on its electronic bulletin board and Internet page; phone numbers and addresses are noted below. To reach the SBIR program information on Internet use "2. Services Available," then "4. Government Contracting Opportunity." Though the SBIR office located at SBA headquarters does not keep specific solicitations, general information on the program can be obtained by calling the number below. The SBA provides a toll-free number (1-800-U-ASK-SBA; TDD users, 202-205-7333) to obtain general information on its programs.
Small Business Innovation Research
Office of the Administrative Assistant
Small Business Administration
409 Third St., SW
Washington, D.C. 20416
202-205-6450
SBA Bulletin Board:
1-800-697-4636 (outside D.C.)
401-9600 (D.C. access)
Internet Address:
telnet://sbaonline.sba.gov
http://www.sbaonline.sba.gov
Department Contacts DEPARTMENT OF AGRICULTURE Director, SBIR Program Cooperative State Research Education and Extension Service Ag. P. O. Box 2243 Washington, DC 20250-2243 202-401-4002 DEPARTMENT OF COMMERCE SBIR Program Office 1315 East-West Highway Room 15342 Silver Spring, MD 20910 301-713-3565 Director, Office of Small and Disadvantaged Business Utilization 14th and Constitution Avenue, N. W. HCHB, Room 6411 Washington, DC 20230 202-482-1472 NIST/SBIR Program Physics Building, Rm. A343 Gaithersburg, MD 20899 301-975-4517 DEPARTMENT OF DEFENSE SBIR Program Manager OSD/SADBU The Pentagon - Room 2A340 Washington, DC 20301-3061 703-697-1481 DEPARTMENT OF EDUCATION SBIR Program Coordinator Room 602D 555 New Jersey Avenue, N. W. Washington, DC 20208 202-219-2050 DEPARTMENT OF ENERGY SBIR Program Manager ER-16 Washington, DC 20585 301-903-0569 DEPARTMENT OF HEALTH AND HUMAN SERVICES SBIR Program Manager Office of the Secretary Washington, DC 20201 202-690-7300 DEPARTMENT OF TRANSPORTATION DOT SBIR Program Director Research and Special Programs Admin National Transportation Systems Center 55 Broadway, Kendall Square Cambridge, MA 02142-1093 617-494-2756 ENVIRONMENTAL PROTECTION AGENCY SBIR Program Manager Research Grants Staff (8703) Office of Research and Development 401 M Street, S.W. Washington, DC 20460 202-260-7899 NASA Program Manager, SBIR U. S. NASA Headquarters 300 E Street, S.W. - Code XC Washington, DC 20546-0001 202-358-0120 NATIONAL SCIENCE FOUNDATION SBIR Program Managers SBIR Program, Room 590 4201 Wilson Boulevard Arlington, VA 22230 703-306-1391 NUCLEAR REGULATORY COMMISSION SBIR Program Representative Financial Management, Procurement and Administrative Staff Mail Stop T-10 D5 Washington, DC 20555 301-415-5822