In 1989, the year SEAF was founded, new democracies and free market economies had begun to arise from the ashes of communism and weight of old oligarchies. Elsewhere in the world, governments in the emerging markets also realized the importance of achieving growth through encouraging the growth of local small and medium enterprises. They looked to growing private sectors to achieve economic growth, reduce poverty, increase prosperity and help achieve political and economic stability. Investors also saw the opportunities represented by these growing enterprises, and were interested in participating.

To address these issues, SEAF was established, initially as a private investment subsidiary of the international development organization CARE. Then called the CARE Small Business Assistance Corporation or CARESBAC, the organization had a dedicated focus of providing growth capital coupled with technical assistance to small- and medium-enterprises ("SMEs"). Backed initially by a $300,000 grant from the U.S. Agency for International Development, CARESBAC raised investment sources through a variety of commodity sales, initial grants, and loan commitments that created the resources behind its initial private investment funds located throughout Central and Eastern Europe.

In 1995 the activity of CARESBAC was spun off from CARE, becoming the Small Enterprise Assistance Funds (SEAF). SEAF was formally registered as an independent tax-exempt organization in the State of New York sponsoring and managing for-profit investment funds that target businesses operating in underserved communities.

Below is a chronology of funds and when they were established. Funds may have had developmental, commercial, or combined development / commercial goals as a function of donor objectives.