Brightwood Capital SBIC IV, LP – Exemption Sought for Conflict of Interest Financing Under Small Business Investment Act Section 312

Brightwood Capital SBIC IV, LP, a federally licensed Small Business Investment Company (SBIC) headquartered at 810 Seventh Avenue, New York, NY, has filed for an exemption under Section 312 of the Small Business Investment Act of 1958 and 13 CFR 107.730. The exemption is required because the proposed financing transaction constitutes a conflict of interest under federal regulations. The conflict arises because Brightwood Capital SBIC IV, LP intends to provide financing to The Smith and Oby Holding Company (Walton Hills, OH 44146), a company in which several of its Associates already hold more than 10% ownership. The Associates involved include 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 — all under common control and sharing the same investment adviser, Brightwood Capital Advisors, LLC. Because these entities collectively own more than 10% of the borrowing company and share common control with the SBIC, the transaction falls squarely within the conflict-of-interest financing rules of 13 CFR 107.730(a). Under SBA rules, such transactions require advance public notice and a 15-day public comment window before the SBA can grant an exemption. Interested parties have 15 days from April 1, 2026 (the date of publication) to submit written comments to the Associate Administrator for Investment at the U.S. Small Business Administration, 409 Third Street SW, Washington, DC 20416.

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