The company today announced that the U.S. Small Business Administration (the “SBA”) has approved Capital Southwest SBIC II, LP’s (“SBIC II”) request to increase its leverage commitment from $175 million to $250 million pursuant to recent legislation. The increased leverage capacity enhances Capital Southwest’s ability to continue deploying capital through SBIC II, a wholly owned subsidiary of Capital Southwest, in support of its lower middle market investment strategy. SBIC II expects to use the additional capacity to pursue SBIC-eligible investment opportunities consistent with the investment strategy approved at licensure, while maintaining its existing underwriting standards and portfolio diversification approach. The SBA may limit the amount that may be drawn each year under the leverage commitment, and each issuance of leverage is conditioned on SBIC II’s full compliance, as determined by the SBA, with the terms and conditions set forth in the SBA regulations. As of 2026-09-16, the Fund’s leverage was 52.7% and Debt Focused BDC Group leverage was 51.9%.
