Stellus Capital Investment Corporation, a business development company, today announced that its wholly-owned subsidiary, Stellus Capital SBIC II, LP ("Stellus SBIC"), has received approval for a license from the United States Small Business Administration ("SBA") to operate as a Small Business Investment Company ("SBIC"). This is the second SBIC license granted to the Company through its SBIC subsidiaries.

The license will allow Stellus SBIC to obtain leverage by issuing SBA-guaranteed debentures, subject to the issuance of a capital commitment by the SBA and customary procedures. SBA-guaranteed debentures are non-recourse, interest only debentures with interest payable semi-annually and have a ten-year maturity. The interest rate is fixed on a semi-annual basis at a market-driven spread over U.S. Treasury Notes with ten-year maturities. Current statutes and regulations permit Stellus Capital SBIC II, L.P. to borrow up to a maximum of $175 million in SBA-guaranteed debentures, subject to required capitalization of the SBIC subsidiary and other requirements.

"We are pleased to have obtained approval from the SBA for our second SBIC license and we look forward to continuing to work closely with the SBA in the years ahead," said Robert T. Ladd, Chief Executive Officer of the Company. "This will give us access to up to a maximum of $175 million of attractive, long-term debt capital, which provides additional liquidity to selectively grow our portfolio and generate attractive returns for our shareholders."