NEW YORK, April 6, 2015 /PRNewswire/ — Saratoga Investment Corp. (NYSE: SAR) (“Saratoga Investment” or “the Company”), a business development company, is pleased to announce that the U.S. Small Business Administration (“SBA”) has issued a “green light” or “go forth” letter inviting Saratoga Investment to continue its application process to obtain a license to form and operate its second Small Business Investment Company (“SBIC”) subsidiary.
“The success of our current SBIC investment program has contributed to the improvement in our financial strength by expanding the size and quality of our assets under management,” said Christian L. Oberbeck, Chairman and Chief Executive Officer of Saratoga Investment. “A second license would enable us to use the 2-to-1 leverage, lower cost of capital and favorable terms inherent in the SBIC program to grow our asset base by the permitted amount under the second license of $112.5 million. The investment strategy of focusing on the smaller, less competitive end of the market would be consistent with our first fund.”