Washington, D.C. – The U.S. Senate Committee on Small Business and Entrepreneurship today passed the Small Business Investment Company Capital Act, sponsored by U.S. Sens. Jim Risch (R-Idaho) and Ben Cardin (D-Md.). This legislation would increase the cap on Small Business Investment Companies’ (SBIC) family of funds. SBICs are privately owned and managed funds that use private capital leveraged by a Small Business Administration (SBA) guarantee to invest in qualified small businesses.
“The SBIC program has provided an incredible amount of investment and support to small businesses over the past 50 years,” said Risch. “These investments in small businesses have helped drive the growth engine that continues to carry America forward. I will continue to work to make sure the program is updated to reflect current demands.”
“Today’s Senate action is a welcome sign that Congress recognizes the importance of improving the flow of capital to small business to help accelerate job creation and economic growth in communities across America,” said Brett Palmer, President of the Small Business Investor Alliance. “Thanks to his hard work and continued support for removing impediments to small business investment, Senator Risch has moved S.552 closer to final approval, which will help small businesses access capital, grow, and hire.”
“Policies that foster and encourage robust entrepreneurial activity and small business ownership provide the basis for economic prosperity important to the long-term vitality and success of our nation,” said Bruce Josten Executive Vice President of the U.S. Chamber of Commerce. “The SBIC program is an important source of early funding for entrepreneurs and it plays an important and vital role in providing an alternative means of obtaining capital where funding has not been available through conventional lending methods.”
The bill is also cosponsored by Senators Kelly Ayotte (R-N.H.), Jeanne Shaheen (D-N.H.) and Chairman David Vitter (R-La.) and will now move to the Senate floor for consideration by the full Senate.