Banks have rediscovered an innovative weapon in their battle with nonbank financial companies: direct equity investments in small businesses.

A growing number of banks are forming and pouring cash into a once- troubled vehicle known as a small-business investment company, or SBIC. Such private venture capital firms are licensed and regulated through a revamped Small Business Administration program.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.