Bill Introduced to Expand Small Biz Access to CapitalMarch 18, 2015
House Small Business Committee Chairman Steve Chabot (R-Ohio) and Rep. David Cicilline (D-R.I.) recently introduced the NSBA-supported bill, Small Business Investment Company (SBIC) Capital Act of 2015 (H.R.1023). A companion bill, S. 552, was introduced concurrently by members of the Senate Committee on Small Business and Entrepreneurship, Ranking Member Ben Cardin (D-Md.) and Senator James Risch (R-Idaho).
This bipartisan, bicameral measure aims to provide small businesses greater access to capital in order to grow their businesses and create jobs. Specifically, this legislation would amend the Small Business Investment Act of 1958 to increase from $225 million to $350 million the maximum amount of outstanding leverage to be made available by the Small Business Administration (SBA) to two or more commonly controlled SBICs not under capital impairment.
Founded in 1958, the SBIC Program is one of many financial assistance programs available through the U.S. Small Business Administration (SBA), which provides loans to qualified investment funds, or SBICs who in turn invest in promising small businesses by combining the SBA loan with privately raised capital. The SBIC Program is a public-private partnership that provides equity and debt financing to qualifying small businesses. Since its inception, SBICs have invested more than $70 billion in nearly 170,000 small businesses.
The SBIC Program Annual Report for FY 2013 shows that SBICs provided almost $3.5 billion in financings to 1,068 small businesses. More than 24 percent of those businesses were women, minority, or veteran-owned or in low or moderate income (LMI) areas. Additionally, SBIC 2013 financings supported an estimated 73,585 jobs.
NSBA enthusiastically supports the SBIC Capital Act, and looks forward to working with Chairman Chabot and Ranking Member Cardin to help enact these measures in both chambers.
Please click here to read NSBA’s letter of support for the SBIC Capital Act of 2015.