The U.S. Small Business Administration (SBA) has announced today the threefold growth of the Impact Investment Fund of the Small Business Investment Company (SBIC) program. In the last 12 months, the fund has tripled.
According to the SBA, the Impact Investment Fund was created in 2011 to support small business investment strategies that maximize financial return. By doing so, the SBA hopes to also enhance social, environmental or economic impact. With the implementation of the Impact Fund, the impact investing industry can also build a track record and measurement standards to foster more capital.
At the beginning of 2014, two Impact SBICs managed $182 million but concluded the year with six Impact SBICs managing a combined amount between $442 million and $572. Although this displays rapid growth, the expected leverage level was set at $1 billion.
To read more on how the SBA is planning to expand the fund, click here.