Capital Southwest Corporation announced it received approval from the U.S. Small Business Administration (SBA) to increase the leverage commitment for its subsidiary, Capital Southwest SBIC II, LP. The approval boosts the available leverage from $175 million to $250 million.
The additional $75 million in capacity will enhance the company's ability to deploy capital and provide financing solutions to lower-middle market businesses. Capital Southwest intends to use the funds to pursue investment opportunities consistent with its existing underwriting standards and strategy. This expansion follows recent legislation and strengthens the role of the SBA program in the company's growth plans.