How does SBA provide leverage once a NMVCC decides to make an investment?
NMVCCs will draw down leverage in the same fashion as an SBIC would through a mechanism referred to as “just-in-time” funding. Bimonthly, SBA will consider applications submitted by NMVCCs for draw. If SBA approves a company’s draw application, the company then can obtain funds upon 24 hours advance notice to SBA. SBA will require the NMVC firm to use its private capital in tandem with leverage.
