The U.S. (SBA) Small Business Administration has approved Lafayette Square's application for its first SBIC (Small Business Investment Company) license, the national investment platform announced recently. The license will supplement the company's current leverage facilities, including Sumitomo Mitsui Banking Corporation financing.
The SBIC program, established in 1958, represents a vital partnership between the government and the private sector. A regular license can provide access to up to $175 million in government leverage, with a family of affiliated SBICs having access to up to $350 million. In addition, the approval demonstrates the SBA's dedication to innovating capital-access methods for low- to moderate-income areas and small businesses. A total of 29, including four first-time and 25 subsequent fund SBICs, received the SBA licenses in 2022.
An essential factor of Lafayette Square's credit strategy is providing borrowers with access to Worker Solutions. This custom-built platform aims to measurably boost the retention, well-being, and productivity of employees. In addition, it monitors and assesses the impact of Lafayette Square's SBIC on enhancing the lives of low- and moderate-income workers.
This is the third license the SBA has granted to Damien Dwin, Founder and CEO of Lafayette Square. The SBIC will be managed as a drop-down subsidiary of Lafayette Square's business development company.
Damien Dwin shares, "In Washington, DC, Lafayette Square Park sits adjacent to the White House and Department of Treasury. Our name, "Lafayette Square," reflects our intention to align ourselves with federal, state, and local governments and the taxpayers they represent." He added, "Our approach to risk management and generating returns purposefully seeks inspiration from existing regulations dating back to the 1950s aimed at increasing prosperity for all Americans in all places around the country. We believe a public-private partnership focused on improving prosperity across the United States through a regional lens provides a scalable means of transparently effecting positive outcomes for all."
(Source: Cision PR Newswire)
About Lafayette Square
New York-based Lafayette Square seeks to generate investment opportunities in underserved markets and underutilized locations. It aims to increase job quality, benefits adoption, financial well-being, and employee retention across its entire portfolio of companies and partners. To meet its goals, the company invests across asset classes and seeks to deliver robust risk-adjusted returns to investors while positively impacting the lives of people and communities. Its vision is to create a global economy in which all individuals and communities can participate. Lafayette Square enables a robust workforce and a more inclusive American economy by expanding access to economic opportunities.