MCG Capital Corporation Receives SBIC License for Subsidiary Solutions Capital I, L.P.

ARLINGTON, Va., Oct. 24 /PRNewswire-FirstCall/ -- MCG Capital Corporation (NASDAQ: MCGC) today announced that its wholly owned subsidiary, Solutions Capital I, L.P., has received a license from the United States Small Business Administration ("SBA") to operate as a Small Business Investment Company ("SBIC"). The license allows Solutions Capital I to borrow funds which can be used to provide debt and equity capital to qualifying small businesses. Additionally, MCG has applied for exemptive relief from the SEC, similar to relief that has been granted to other business development companies, to permit MCG to exclude debt issued by the SBA to Solutions Capital I from its consolidated asset coverage ratio, which will enable MCG to fund more investments with debt capital. There can be no assurances that MCG will receive exemptive relief from the SEC.

Steven F. Tunney, President and Chief Executive Officer of MCG said, "We are pleased that the SBA has approved our license for Solutions Capital I. This will provide a new leveraged vehicle for funding both debt and equity investments as we continue to grow and serve the middle market. Solutions Capital I is licensed to draw up to $100 million in leverage and intends to seek up to $127 million in leverage from the SBA in various tranches over the next few years."

"Solutions Capital I will be able to utilize MCG's deal sourcing, underwriting, and deal monitoring resources to find great small businesses to invest in and help grow," said Andrew Jacobson, Principal of Solutions Capital I and MCG Managing Director.

About MCG Capital Corporation

MCG Capital Corporation is a solutions-focused commercial finance company providing capital and advisory services to middle market companies throughout the United States. Our investment objective is to achieve current income and capital gains. Our capital is generally used by our portfolio companies to finance acquisitions, recapitalizations, buyouts, organic growth and working capital. For more information, please visit www.mcgcapital.com.

Forward-looking Statements

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