Alan Roth Discusses SBA Program with American City Business Journal

Winston & Strawn Partner Alan Roth spoke with American City Business Journal, where he discussed the Small Business Administration’s Small Business Investment Company program, which invests up to $4 billion a year in small businesses in the form of investments. Investment firms can apply for the program and once accepted, are eligible for low-interest loans to match their private fundraising to invest in small businesses. Alan said the program has, for relatively few dollars, boosted small businesses around the country at no cost to taxpayers.

“Part of the Biden administration’s initiative is to provide capital to small businesses and businesses that would otherwise not have access to capital,” Alan said. “I truly think that the program really helps small businesses to continue to operate and to grow. It’s truly one of those unknown gems that are out there that are supported by both Democrats and Republicans.”

Alan stressed that there is no mechanism for business owners to apply for this financing since the money is overseen by investment firms that make their own investment decisions. He also noted that these tend to be larger investments than the SBA’s more typical 7(a) or 504 lending programs. 

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