  Multiplicity is a key statistic for understanding the formation of very low
mass (VLM) stars and brown dwarfs. Currently, the separation distribution of
VLM binaries remains poorly constrained at small separations (<1 AU), leading
to uncertainty in the overall binary fraction. We approach this problem by
searching for late M/early L plus T dwarf spectral binaries whose combined
light spectra exhibit distinct peculiarities, making their identification
independent of separation. We define a set of spectral indices designed to
identify these systems, and use a spectral template fitting method to confirm
and characterize spectral binary (SB) candidates from a library of 738 spectra
from the SpeX Prism Spectral Libraries. We present twelve new binary
candidates, confirm two previously reported candidates and rule out other two
previously reported candidates. All of our candidates have primary and
secondary spectral types between M7-L7 and L8-T8 respectively. We find that
blue L dwarfs and subdwarfs are contaminants in our sample and propose a method
for segregating these sources. If confirmed by follow-up observations, these
systems may potentially add to the growing list of tight separation binaries,
giving further insight into brown dwarf formation scenarios.
