Hercules Capital Receives SBA "Green Light" Letter To Submit Its Fourth SBIC License Application
Portfolio Pulse from Benzinga Newsdesk
Hercules Capital, Inc. (NYSE:HTGC) has received a 'green light' letter from the U.S. Small Business Administration (SBA) to submit an application for a fourth Small Business Investment Company (SBIC) license. If approved, Hercules would gain access to an additional $175 million of long-term debentures, increasing its total borrowing capacity through the SBIC program to $350 million. However, the receipt of the letter does not guarantee the issuance of the license.
November 09, 2023 | 10:45 pm
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Hercules Capital's potential fourth SBIC license could significantly increase its borrowing capacity, providing more flexibility to support small and growth-oriented businesses. However, the license is not guaranteed.
The news of Hercules Capital potentially obtaining a fourth SBIC license is directly relevant to the company and its financial capabilities. If granted, the license would significantly increase Hercules' borrowing capacity, allowing it to support more businesses. However, the uncertainty surrounding the issuance of the license could introduce some volatility in the short term.
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