Fifth Street Gets Approval from SBA for SBIC (FSC)

Fifth Street Finance Corp (NYSE: FSC) received approval for a license from the U.S. Small Business Administration (SBA) to operate as a small business investment company (SBIC).

This license will allow the unit to get $150 million in government-guaranteed loans. The interest rate for such loans is fixed at the time of issuance as a spread over the ten year U.S Treasury Notes. Fifth Street is currently trading at $11.36 and expects to give 30 cents per share as dividend. This dividend is also expected to increase with the number of deals.