Capital Southwest (CSWC) said Monday its unit, Capital Southwest SBIC II, received a license from the US Small Business Administration to operate as a small business investment company, or SBIC.

Under the license, Capital Southwest SBIC II will be able to issue SBA-guaranteed debentures, subject to a leverage commitment from the SBA.

The unit will also be subject to SBA regulations regarding the size and nature of portfolio companies, as well as the structure of its investments, the company said.