U.S. Reps. Judy Chu (D-CA) and Andrew Garbarino (R-NY) recently commended the House of Representatives’ passage of the Investing in Main Street Act of 2023 (H.R. 400), which aids Small Business Investment Companies (SBICs) growth.
The legislation, introduced by Chu and Garbarino, amends the Small Businesses Investment Act of 1958 to boost the percentage of capital and surplus a bank or federal savings association may invest in SBICs to match current banking regulations.
The SBIC program has a Small Business Administration (SBA) guarantee increasing access to low-cost, government-backed investment capital for high-growth, start-up businesses. The Investing in Main Street Act would amend the small business investment rules within the Small Businesses Investment Act of 1958 to allow banks to invest a full 15 percent in SBICs.
“America’s entrepreneurship rates are soaring as we emerge from the COVID-19 pandemic,” Chu said. “To ensure that trend continues, we must make sure small businesses have the capital they need to succeed. Small Business Investment Companies are one of the best ways to deliver these investments, but for too many years, an outdated law has limited the amount that could be invested in them.”
Chu said the Investing in Main Street Act could triple the investment capital available to the nation’s small businesses.
“Small Businesses are major contributors for economic growth and prosperity, especially in my district on Long Island,” Garbarino said. “As we face economic uncertainty due to inflation, labor shortages, and other ongoing challenges, we look to our small businesses to be leaders in the private sector and to help revitalize our communities. This legislation will ensure that small businesses can gain access to the additional capital they need to do just that.”
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