Interest Rates Increase For SBICs: June 2026 Standard Debenture Pooling

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The June 2026 pooling of Small Business Investment Company (SBIC) standard debentures was priced at 4.748%. This pricing of SBIC standard debentures reflected a slight increase from the rate set in March 2026 of 4.626%.

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The SBIC standard debenture rate is based on a market-driven premium to 10-Year Treasury Notes. Historically, the standard debenture rate was set semiannually, but beginning with this June 2026 pooling, rates will be priced quarterly. SBICs that drew down standard debenture leverage between the March 2026 and June 2026 poolings locked in the 4.748% interest rate for the 10-year term of the debentures.

Despite the change to quarterly pricing of the debentures, payment obligations for drawn debenture leverage remain unchanged. Standard debenture interest payments are due semiannually, and a balloon payment of the entire principal amount of the debentures is due on the 10th anniversary of the pooling. The SBIC program also imposes an annual fee on the standard debentures, which is currently set at 0.2500%. A new rate for the annual fee will be set after September 30, 2026. Each tranche of drawn SBIC standard debenture leverage may be prepaid at any time, without premium or penalty.

This pricing is limited to standard debentures issued during this period. Accrual debentures issued during this period will be pooled and marketed separately from standard debentures, and therefore may be priced differently. Accrual debentures are also charged an annual fee, which is determined separately from the standard debenture annual fee.

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Interest Rates Increase For SBICs: June 2026 Standard Debenture Pooling

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