How I Invest with David Weisburd E212: Unlocking $175M: Raising Venture & Private Equity Capital with SBICs
Sep 12, 2025
Join Eric Rosiak, CEO & CIO of Amplify Community Investment Partners, as he reveals the ins and outs of the SBIC program. Discover how to access $175M in low-cost capital without excessive risk! Eric breaks down the eligibility criteria, the allure of the new accrual debenture license for venture funds, and why big investment platforms are diving into SBICs. He also shares tactical advice on structuring agreements to maximize SBIC opportunities, all while highlighting the impressive historical returns and rigorous diligence required to succeed in this space.
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SBIC Leverage Is A Unique LP-Like Advantage
- SBICs provide large, low-cost, long-dated leverage up to about $175M at ~1% over 10-year Treasuries with interest-only payments for 10 years.
- Eric Rosiak frames the SBA as a special limited partner with capped upside that materially enhances returns and scale.
Three-Prong Eligibility Narrows Target Size
- Eligibility is a three-prong test using NAICS/employee thresholds or financial thresholds (net worth/income) at time of investment.
- A practical proxy is companies with roughly under $15M EBITDA, often capping target valuations ~ $75–150M.
Diverse Institutional Demand Is Growing
- LPs in SBICs include banks, insurers, foundations and increasingly selective endowments and university endowments.
- Banks historically dominated due to regulatory alignment, but diverse institutional demand has grown as performance data accumulated.