Stellus Capital Adds Third SBA-Backed SBIC License

The Tip Desk · July 29, 2026 · 2 min read

The BDC estimated second-quarter net investment income of $0.25 to $0.27 a share and NAV of $12.76 to $12.84 a share as of June 30, 2026.

Stellus Capital Investment Corporation (SCM) said it received a U.S. Small Business Administration license on July 14, 2026 for a third SBIC that would allow it to contribute $125 million of equity and draw up to $250 million of SBA-guaranteed debentures, subject to a $475 million family-of-funds limit across its SBIC subsidiaries.

The externally managed, closed-end business development company, which invests primarily in private middle-market companies through first lien, second lien, unitranche and mezzanine debt and related equity, said the SBA partnership is an important part of its capital structure and provides long-term, low-cost growth capital.

For the second quarter ended June 30, 2026, Stellus estimated U.S. GAAP net investment income of $0.25 to $0.27 a share. Chief Executive Officer Robert T. Ladd said the company funded approximately $18 million of investments and received approximately $49 million of repayments, leaving a total portfolio of $965 million to $975 million at fair value.

Estimated net asset value was $12.76 to $12.84 a share as of June 30, 2026, up $0.22 to $0.30 a share, or 1.8% to 2.4%, from $12.54 a share at March 31, 2026. The company said the increase was primarily due to net fair value appreciation on the portfolio and the accretive impact of equity repurchases, partially offset by dividends per share paid in the quarter in excess of NII per share.

Stellus estimated an annualized return on equity of more than 17% for the second quarter. Investments on non-accrual status comprised 5.4% of the portfolio at fair value and 8.5% at cost as of June 30, 2026. During the quarter, loans to one portfolio company were returned to accrual status, and there were no additions to non-accrual status.

Under a board-approved share repurchase program, the company bought 274,343 shares in the second quarter at a weighted average price of $8.88 a share, an aggregate investment of approximately $2.4 million. About $17.6 million remained available under the $20.0 million authorization as of June 30, 2026. The company currently expects the program to remain in effect until the earlier of March 2, 2027 or the repurchase of $20.0 million of outstanding common stock.

Stellus Capital Management, LLC, the company’s investment adviser, was acquired by Ridgepost Capital, LLC on June 22, 2026. Ridgepost Capital, Inc., the parent of Ridgepost Capital, LLC, is listed on the New York Stock Exchange.

The company will release full second-quarter results on August 10, 2026, after the close of trading, and will host a conference call on August 11, 2026, at 10:00 a.m. Central Time, led by Ladd and Chief Financial Officer W. Todd Huskinson.

The preliminary estimates are subject to quarter-end closing, review procedures and third-party review, including fair-value determinations, and actual results could differ materially.