SBA Form 856A, Disclosure Statement Non-Leveraged Licensees

SBA Form 856A, Disclosure Statement Non-Leveraged Licensees
SBA Form 856A, Disclosure Statement Non-Leveraged Licensees

What Is SBA Form 856A?

SBA Form 856A, Disclosure Statement Non-Leveraged Licensees is a form used for reporting the non-leveraged funds of license holders to the Small Business Administration (SBA). It is used to collect information about any debentures, transactions and financial information as part of the inspection of an SBIC - a Small Business Investment Company.

The form has to be completed by the management of an SBIC and addressed to an SBA Examiner following their directions. The latest version of the form was released by the SBA in May 2012 with all previous editions obsolete. A fillable version of the SBA Form 856A is available for digital filing and download below:

An SBIC has to disclose the information about any non-borrowed funds of license holders via the SBA Form 856A. The information about the companies licensed by the SBIC required on the form includes the company portfolio and some financial information.

The SBIC filling the form is responsible for the accuracy of information provided within. Providing false information can lead to severe fines, imprisonment of up to 30 years, and civil fraud damages of three times the Government’s loss.

The SBA 856 series contains two forms in total. The SBA Form 856, Disclosure Statement Leveraged Licensees is a form similar to the 856A and is used to collect information from the management of an SBIC as part of an on-site examination of the investment company. The SBA Form 856 has to be completed by the management of an SBIC and is used to disclose certain information about the leveraged funds of license holders as well as the obligations, transactions, and relationships of the licensees.

SBA SBIC Program

The SBIC Program helps by financially assisting the small businesses in the United States. All SBICs are privately owned SBA-regulated investment companies that use personal funds and borrowed capital for making equity and debt investments.

The two main rules for the operation of all SBICs are:

  1. All SBICs must invest only in Small Businesses with a tangible net worth of less than $19.5 million.
  2. SBICs must invest 25% of their capital in Smaller Businesses with a net worth of less than $6 million and a $2 million net income over the last two years.

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