GAAP-to-SBA reconciliation
Explain every reporting-basis difference before the quarter is issued.
NSight Private Credit — SBIC Edition connects the administrator record, approved valuation workpapers and SBA-specific reporting adjustments in one reviewed bridge.
A GAAP-to-SBA reconciliation documents how an SBIC moves from its accounting record to the values and classifications used for SBA reporting, with each difference supported and approved.
The operational problem
GAAP fair value, SBA valuation and capital impairment are related—but not interchangeable.
The quarter-end process must keep the accounting basis, applicable SBA valuation guidance and capital impairment analysis distinct. Combining them without a documented bridge makes review slower and obscures why a reported number changed.
NSight retains the source value, proposed adjustment, approved adjustment and explanation so the reporting handoff can be traced rather than reconstructed.
Reviewed workflow
From source evidence to a controlled output.
- 01
Import the accounting record
Bring in administrator balances and the portfolio data required for the agreed reconciliation scope.
- 02
Identify differences
Map relevant classification, valuation and reporting-basis differences without overwriting the source record.
- 03
Review the bridge
People confirm evidence, assumptions and adjustments; unresolved items remain visible in the review queue.
- 04
Issue reviewed workpapers
Produce the approved bridge and supporting history for quarter-end reporting preparation and audit support.
Practical example
One asset, separate bases, one documented explanation.
A loan’s administrator carrying value remains visible beside the approved value used for the relevant SBA workpaper. The bridge records the adjustment and explanation without implying that GAAP fair value, SBA valuation and the capital impairment calculation are the same measure.
The applicable basis depends on the licensee and the governing requirements.
Supported scope
What NSight does—and where people remain responsible.
- NSight documents and calculates the configured bridge; people approve the accounting and regulatory treatment.
- The administrator remains responsible for the general ledger and NAV.
- SBA valuation treatment can depend on licensee circumstances and should not be inferred from a generic template.
- Capital impairment review is a separate controlled calculation, supported by the approved inputs.
Questions
Direct answers for an SBIC team.
How does GAAP-to-SBA reconciliation work?
The team starts with the accounting record, identifies required SBA-basis differences, supports each adjustment, reviews the bridge and carries the approved output into reporting preparation.
Is SBA valuation the same as ASC 820 fair value?
Not necessarily. The applicable treatment depends on the licensee and SBA guidance. NSight keeps the bases and their supporting workpapers distinct.
Does NSight calculate capital impairment?
NSight can perform the configured capital impairment calculation from reviewed inputs, while the responsible team retains review and reporting responsibility.
Continue exploring
Related SBIC quarter-end workflows.
Next step
Start with a quarter you’ve already closed.
Choose a few borrowers and fund workpapers. NSigma reproduces the agreed outputs in NSight so your team can compare them line by line.