Dr. John Paglia Will Testify Before U.S. House of Representatives on Small Business Investment Company Program Research
Pepperdine Graziadio Professor and Senior Associate Dean John Paglia, was invited to testify before the U.S. House of Representatives Committee on Small Businesses for hearing on the “SBA Management Review: Small Business Investment Company Program.”
Dr. Paglia’s key findings from his research on the Small Business Investment Company program provides a deeper understanding of the role the SBIC program has played in providing financing to the small business sector. Dr. Paglia’s research points out the demonstrated success the SBIC program has had with job creation, filling voids in the small business financing and diversifying the small business sector. Key findings from his research include:
- SBIC investments support companies that are less likely to be considered by private equity investors.
- On average, employment in small businesses funded by these SBIC programs grew by 45.6 percent and created or sustained almost 9.5 million jobs in the U.S. economy.
- On average, one new job was created for every $14,458 of funding invested through the SBIC Program, while an average of one job was created or sustained for every $4,525 invested (between 1999 and 2015).
- SBIC funds are more gender diverse and racially diverse than the broader venture capital and private equity community (VPCE).
The research and assessment conducted by Dr. Paglia concludes that many small businesses continue to struggle with financing and accessing capital to grow in a timely manner. The SBIC program has helped bridge the financing and capital gaps and has a positive impact on the U.S. economy. For more information on the U.S. House Committee on Small Businesses, visit smallbusiness.house.gov.