Convenience

Small-Business Investment Companies
Taking a more balanced approach in their
choices than venture capital companies, small-business investment companies (SBICs)
seek profits by investing in companies with potential for rapid growth. Created by the
Small Business Investment Act of 1958, SBICs are federally licensed to borrow money
from the SBA and to invest it in or lend it to small businesses. They are themselves
investments for their shareholders. Past beneficiaries of SBIC capital include Apple Com-
puter, Intel, and Federal Express (now FedEx). In addition, the government has recently
AP
Im
ages/Paul
Zoeller
Rebecca Boenigk is the founder and CEO of Neutral Posture.
Neutral Posture makes a variety of ergonomic seating products.
Beonigk’s father, Dr. Jerome Congleton, developed the technology
but did not have the expertise to commercialize it. Ms. Boenigk used
personal savings and family loans to found what is now an
international business.
venture capital
companies
A group of small
investors seeking to
make profits on
companies with
rapid growth
potential
144
Part 2:
Planning
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begun to sponsor minority enterprise small-business investment companies (MESBICs).
As the name suggests, MESBICs specialize in financing businesses that are owned and
operated by minorities.