New Senate Bill Aims To Increase Investment In Small Businesses
Last week, U.S. Senators Todd Young, R-Ind., Tammy Duckworth, D-Ill., and Jim Risch, R-Idaho, introduced the Investing in Main Street Act to increase investment in small businesses by permitting banks to invest up to 15 percent of their capital in Small Business Investment Companies.
The dramatic increase in capital for the SBIC program would be deployed to domestic small businesses at no cost to the taxpayer. SBICs have invested more than $451 million dollars in 135 Hoosier small businesses over the last ten years.
The bill originated in the House, having been introduced by Representative Judy Chu, D-Calif. The House passed H.R. 116, 403-2, on January 14, 2019. It was sent on to the Senate the next day.
“The Small Business Investment Company Program is one of the great successes of the Small Business Administration,” said Senator Young. “The positive effects of this program can be seen in countless Hoosier small businesses and companies, including family-owned NRP Jones in LaPorte, Healthx in Indianapolis, and Wild Sports in Westfield.”
“Everybody knows that when small business grow, our economy grows. Yet many small businesses owners lack access to the funding necessary to grow and create good-paying jobs,” said Senator Duckworth. “I am proud to join Senators Young and Risch in introducing this bipartisan legislation, which will expand banks’ capacity to get more dollars in the hands of small business owners across the country.”
“Small businesses have fueled much of the extraordinary growth our economy has experienced over the last several years. When we invest in them, we invest in our country’s economic future,” Senator Risch said. “This legislation will put early stage capital within reach for more entrepreneurs to grow their businesses, create jobs, and strengthen our communities.”
Among those cheering the filing of the legislation was Faraz Abbasi, senior partner at Indianapolis-based Centerfield Capital.
“We are grateful that Senators Young, Duckworth, and Risch understand the importance of increasing capital access to small businesses,” Abbasi said. “SBICs are powerful job-creating vehicles that have had an enormous impact in Indiana and across the country, having invested more than $451 million in Indiana small businesses since 2009, with nearly $97 million invested in Fiscal Year 2018 alone. With this simple legislation, small businesses will have access to capital for growth and advancement, which in turn will create employment opportunities for Hoosiers.”
Full text of the legislation is available here.