Hearing On Investment in Critical Technologies Through the Small Business Admini
Hearing On Investment in Critical Technologies Through the Small Business Admini
United States Congress Senate Committee On Smal
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Summing up here, I will say that I think it is demonstrable that the SBICs in fact have financed critical technologies, and that the participating preferred instrument will be a great enabler to permit them to do more. I believe that there is a danger in compromising the old SBIC structure with that proposed for the Commerce program. The exist- ing program has an internal financial integrity developed over time into the capital structure. Good people from the agency and private industry spent 2... years developing a structure that rewards performance and penalizes failure and abuse. I think a casual interposition of soft money into that capital structure, for whatever purposes, with no size limitation, will cause problems. 54 The SBIC program has a record of success. In response to Sena- tor Pressler's question on who else in the world has them, and Mr. Foren responded "Japan, " I think this Committee should under- stand that the program has been an international model, including for Japan.
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