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Small Business Committee Approves Rep. Chu Bill to Increase Small Business Investment

June 22nd, 2017 by admin

“I’m so pleased that both Democrats and Republicans on our committee could come together today to help advance this important bill that will increase investment in our small businesses,” said Rep. Chu. - Courtesy photo

“I’m so pleased that both Democrats and Republicans on our committee could come together today to help advance this important bill that will increase investment in our small businesses,” said Rep. Chu. – Courtesy photo

 

The House Small Business Committee completed a markup of a number of small business bills, including H.R. 2364, the Investing in Main Street Act introduced by Rep. Judy Chu (CA-27) along with Rep. Grace Meng (NY-06) and Rep. Steve Knight (CA-25). This bill would amend the Small Businesses Investment Act of 1958 to increase the percentage of capital and surplus that a bank or federal savings association may invest in Small Business Investment Companies (SBICs) to match current banking regulations. The SBIC program is an investment program with a Small Business Administration (SBA) guarantee that increases access to capital for high-growth, start-up businesses. Currently, SBICs cannot take capital investments from banks that have more than 5 percent of the institution’s capital and surplus invested in SBICs, however banking regulation permits investments up to 15 percent of the banks’ capital and surplus.  Rep. Chu, a member of the Small Business Committee, and Rep. Nydia M. Velázquez (NY-07), Ranking Democrat of the House Small Business Committee, released the following statements:

“I’m so pleased that both Democrats and Republicans on our committee could come together today to help advance this important bill that will increase investment in our small businesses,” said Rep. Chu. “Small businesses are the backbone of our economy, but I know, from talking to entrepreneurs in my district and around the country, that one of the greatest challenges to success is access to capital. That is what the Investing in Main Street Act will address, by letting banks or federal savings associations invest up to 15% of their holdings into SBICs. I hope this bill is brought to the floor swiftly so that more entrepreneurs will be able to access the capital they need to grow their business and hire more workers.”

“Last year, the SBIC program provided $6 billion in financing to 1,200 small businesses, helping sustain over 120,000 jobs,” said Rep. Velázquez. “Ms. Chu’s bill will improve this program and channel additional capital to entrepreneurs, empowering them to grow their businesses. I congratulate Ms. Chu on moving this job-creating proposal through the Committee and will work closely with her as the legislation progresses forward.”

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