Brightwood Capital SBIC IV seeks Section 312 exemption

FR: Small Business Administration

Published April 1st, 2026

Detected April 1st, 2026

Summary

The SBA published a notice that Brightwood Capital SBIC IV, LP (License No. 04045175) has sought a conflict of interest exemption under Section 312 of the Small Business Investment Act to provide financing to The Smith and Oby Holding Company. The transaction triggers conflict provisions under 13 CFR 107.730(a) because associated entities own more than 10% of the target company. The SBA is accepting public comments for 15 days from publication.

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What changed

Brightwood Capital SBIC IV, LP, a federal licensee under the Small Business Investment Act, has requested an exemption to finance The Smith and Oby Holding Company (Walton Hills, OH). The financing qualifies as a conflict of interest under 13 CFR 107.730(a) because six affiliated entities—BCOF V SPV-2, LLC, Brightwood Capital Fund V SPV-3, LLC, Brightwood Capital Fund V-U, LP, Brightwood Capital MM CLO 2025-1, Ltd., Brightwood Capital Offshore Fund IV-U, LP, and BCOF Capital V, LP—are Associates of the applicant and collectively own more than ten percent of the target company. All entities share common control and the same investment adviser, Brightwood Capital Advisors, LLC.

Any interested person may submit written comments to the Associate Administrator for Investment at SBA headquarters within fifteen days of the April 1, 2026 publication date. Comments should be sent to 409 Third Street SW, Washington, DC 20416. Regulated entities and investors should review whether their operations involve similar conflict-of-interest scenarios under the SBIC program and ensure compliance with 13 CFR 107.730 disclosure requirements.

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Notice

Brightwood Capital SBIC IV, LP; Notice Seeking Exemption Under Section 312 of the Small Business Investment Act, Conflicts of Interest

A Notice by the Small Business Administration on 04/01/2026

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Public Inspection Published Document: 2026-06282 (91 FR 16274) Document Headings ###### Small Business Administration

[License No. 04045175] Notice is hereby given that Brightwood Capital SBIC IV, LP, 810 Seventh Avenue, 26th Floor New York, New York 10019, Federal Licensee under the Small Business Investment Act of 1958, as amended (“the Act”), in connection with financings of a small business, has sought an exemption under Section 312 of the Act and 13 CFR 107.730, Financings which Constitute Conflicts of Interest of the Code of Federal Regulations. Brightwood Capital SBIC IV, LP proposes to provide financing to The Smith and Oby Holding Company, 7676 Northfield Road, Walton Hills, OH 44146 to support the company's growth.

The financing is brought within the purview of 13 CFR 107.730(a) of the regulations because BCOF V SPV-2, LLC, Brightwood Capital Fund V SPV-3, LLC, Brightwood Capital Fund V-U, LP, Brightwood Capital MM CLO 2025-1, Ltd., Brightwood Capital Offshore Fund IV-U, LP, and BCOF Capital V, LP are Associates of Brightwood Capital SBIC IV, LP, and own more than ten percent of The Smith and Oby Holding Company. The Associates and Brightwood Capital SBIC IV, LP are under common control and have the same Investment Adviser, Brightwood Capital Advisors, LLC., as those terms are defined in 13 CFR 107.50. Therefore, this transaction is considered a financing which constitutes a conflict of interest.

Notice is hereby given that any interested person may submit written comments on the transaction, within fifteen days of the date of this publication, to the Associate Administrator for Investment, U.S. Small Business Administration, 409 ( printed page 16275) Third Street SW, Washington, DC 20416.

Paul Salgado,

Director, Investment Portfolio Management, Office of Investment and Innovation.

[FR Doc. 2026-06282 Filed 3-31-26; 8:45 am]

BILLING CODE P

Published Document: 2026-06282 (91 FR 16274)