SBA Updates SBIC Limited Partnership Agreement Model

The Small Business Administration (SBA) has released an updated Model Form of Limited Partnership Agreement for Small Business Investment Company (SBIC) funds. This update reflects the SBA's effort to bring the model agreement more in line with customary provisions found in private investment funds, while preserving the regulatory and policy requirements that protect the SBIC program.

The revised model maintains the SBA's core safeguards designed to minimize program risk and ensure consistency across SBIC operations. The update aims to make the SBIC framework more familiar and accessible to institutional investors and fund managers.

SBIC fund sponsors and investors should review the updated model agreement to understand how the changes may affect fund formation and governance.