Home 2022-05-17T11:04:49+00:00


AFFE Update: Access to Small Business Investor Capital Act Introduced

March 7, 2023


SBIA calls on Biden Administration to reinstate EBITDA standard

March 15, 2022


[Action Request] SEC private fund proposals and Thought Leadership analysis

March 2, 2022



Created in 1980 with overwhelming bipartisan Congressional support, Business Development Companies (BDCs) are a job-creating engine that provides access to capital for American small- and medium-sized businesses. BDCs invest in and provide management expertise to these companies to help them grow. BDCs invest at least 70% of their total assets in “eligible portfolio companies,” which are generally defined as public and private U.S. operating companies valued at under $250 million.

In addition to providing access to capital for small and middle market companies, BDCs also allow individual investors access to highly-regulated investment opportunities that were once available to only wealthy individuals and institutional investors.

SBIA in Action

The Small Business Investor Alliance is the leading trade association representing business development companies (BDCs), their investors, and their portfolio companies. The SBIA regularly engages with Republican and Democratic members of Congress, regulatory agencies including the Securities and Exchange Commission (SEC), and outside stakeholders to promote the role of BDCs in small business capital formation and the financing of middle market businesses throughout the United States.

In 2021 alone, SBIA conducted more than 120 meetings with regulators and Congressional offices to educate policymakers on BDC priorities; and pursued exemptions from the SEC for BDC co-investment transactions, which resulted in relief until March 2022. SBIA is working to make the exemptions permanent, and seeking to mitigate recent SEC proposals impacting private funds. SBIA has worked with key Congressional offices to reintroduce bipartisan House legislation that would make changes to AFFE and is working to secure Senate sponsorship of similar legislation. SBIA is also continuing advocacy efforts to reinstate the EBITDA standard for interest deductibility.

SBIA is recognized as the “go-to” resource for Congress and regulators on all issues pertaining to BDCs and their investors. We continue to work proactively in Washington DC to ensure that BDCs maintain their critical role in financing and growing the Main Street economy.

Our Mission
There are currently 126 BDCs with over $180 billion in AUM investing in small- and medium-sized businesses across the country and the industry continues to grow.
There are 57 publicly traded BDCs, allowing ordinary investors a chance to purchase shares in the growth of middle market America.

See how business development companies are making an impact in your state.

There are currently 126 BDCs and the industry continues to grow.

  • 57 are publicly traded BDCs.
  • BDCs represent over $180 billion in AUM (assets under management) investing in small- and medium-sized businesses across the country.

See how business development companies are making an impact in your state.

Success Stories

National Trench Safety – Houston, Texas

National Trench Safety, Houston, TX – NTS is the largest independent provider of trench shoring and safety solutions in the U.S.  The company offers rentals of underground equipment and trench safety products – including excavation braces, aluminum trench boxes and road plate – that are used for infrastructure maintenance and construction across a wide range of end markets.  Founded by trench safety industry veterans in 2004, NTS has grown steadily over the past 13 years.  Ron Chilton, CEO of NTS, has remarked “Stellus has been a valued partner over our continued growth and has always had a solution as our capital needs have changed.  We look forward to working with them into the future.”

Momentum Telecom – Birmingham, Alabama

Momentum Telecom was founded in 2001 as a business telephone provider.  It has since expanded through several key acquisitions to become one of the top providers of fully integrated data and voice services to broadband providers as well as a leading provider in the hosted VoIP industry.  Stellus Capital Investment Corporation has been investor in Momentum since 2014.  “The Stellus team has played a critical role in the rapid growth of Momentum by providing additional capital and the financial flexibility to execute on several transformative acquisitions,” said Bill Fox, the Chief Executive Office of Momentum.  “We look forward to our continued relationship with Stellus.”


Televerde is a global demand generation company that provides sales and marketing solutions to help clients generate demand and nurture leads. Services include Marketing Technology Services, Strategic Engagement Planning, Data Intelligence, Demand Generation & Teleservices, and Inside Sales. The company started out in a small trailer based at the Arizona State Prison Complex – Phoenix prison yard with eight incarcerated females as employees in its contact center.  It has since expanded operations throughout the United States, Argentina, and Scotland, and grown to over 500 employees, including incarcerated females and former inmates who are making the transition to their new, productive lives. Approximately 250 members of Televerde’s workforce are currently or formerly incarcerated.  The BDC Main Street Capital Corporation has been invested in Televerde since 2011. "We are proud to partner with a company that has reduced recidivism over the last 23 years from 68% for the general population to 6% for Televerde demand generation employees," said Vince Foster, CEO of Main Street Capital.

Easy Ice – Marquette, Michigan

Marquette, Michigan - Easy Ice is a provider of ice machine service contracts serving over 8,000 customers across 46 states. Easy Ice is the only national company offering a comprehensive subscription service for commercial ice machines that includes all repairs, preventative maintenance and more. "We are thrilled to have Saratoga continue as our strategic partner with an increased investment," said Mark Hangen, Chief Executive Officer of Easy Ice. "For the past four years, they have been flexible and their investment structure and amount has evolved with the growth of our business, which is now almost 50% larger than it was at the beginning of the year."

Genex Services, LLC – Wayne, Pennsylvania

Helping injured workers return to work - Wayne, PA - Genex was founded in 1978 with the same directive it operates under today — helping injured workers return to their jobs in a safe and efficient manner through compassionate case management, thus reducing health care costs and disability expenses for our customers. Their ability to reliably drive positive results has helped Genex earn the trust 394 of the Fortune 500 companies it serves.

OnAsset Intelligence, Inc. – Irving, Texas

A leader in GPS cargo tracking - Irving, TX - OnAsset's SENTRY FlightSafe® is the only real-time global track and trace solution that is FAA Approved, EASA Approved and formally accepted by all major airlines. Providing high value cargo tracking, real time condition monitoring, end-to-end shipment security, and chain of custody management, OnAsset’s products are in use by Fortune 1000 companies worldwide. Complete business intelligence from the dock door, to the airport, through the final mile of delivery and at every point in between - protecting vulnerable, valuable, and mission critical shipments.