SBIA Legislative and Regulatory Agenda for the 113th Congress
Exempt Private Equity Funds from SEC Registration
Hurt-Himes Bill Text (H.R. 1105)
SBIA Member Marc Reich Testimony on H.R. 1105 before the House Financial Services Committee Subcommittee
Increase Small Business Access to Capital
SBIA Issue Sheet - Small Business Investment Companies (SBIC)
SBIC Program Overview
Small Business Investment Companies are highly regulated private equity funds that invest exclusively in domestic small businesses. Some, not all, SBICs access a U.S. Small Business Administration (SBA) credit facility to increase the amount of capital available for small business investment. This SBA credit facility operates at a zero subsidy rate, meaning the leverage does not come at any additional cost to the taxpayer.
Congressional Action: SBIC Bills in the 113th Congress
H.R. 1106 - Introduced by Representative Steve Chabot (OH-1), David Cicilline (RI-1), and Renee Ellmers (NC-2) on March 13, 2013.
S. 550 - Introduced by Senator Jim Risch (Idaho) on March 13th, 2013.
S. 511 - Introduced by Senator Mary Landrieu (Louisiana) on March 11th, 2013. Actual Text of Landrieu bill.
Financial Regulatory Reform
SBIA Issue Sheet - Financial Regulatory Reform
Private Equity Funds should not be subjected to onerous and ineffective regulations. Private Equity Funds, particularly funds investing in small and medium sized businesses, have never posed any systemic risk nor did they play a negative role in the financial crisis. In fact, private equity investors stepped up and sustained many businesses during the financial crisis.
SBIA Issue Sheet - Tax Reform
Businesses and investors embrace and thrive on business risk. However, political risk is a foreign and destructive force to investment and growth. Tax policy should provide a stable tax structure that encourages investment.
SBIA Issue Sheet - Maintain Interest on Debt as an ordinary business expense
Businesses rely on debt to finance their operations and grow. Interest is incurred in the ordinary course of a trade or business, and it should continue to be treated the same as any other ordinary business expense. Limiting the deductibility of interest would penalize businesses that rely on external financing to manage cash flow, innovate, expand and create jobs.
H.R. 6504 - Small Business Investment Company Modernization Act of 2012
(Introduced by Reps. Steve Chabot (OH-1), David Cicilline (RI-1), and Renee Ellmers (NC-2) on September 21, 2012.)
Final Roll Call Vote in the House (359 Yeas, 36 Nays, 1 Present)
Debate on the House Floor of H.R. 6504 (CSPAN: December 18, 2012) featuring speeches by Rep. Steve Chabot (R-OH), Rep. Nydia Velazquez (D-NY), and Rep. David Cicilline (D-RI)
SBIA Support Letter Available Here
U.S. Chamber of Commerce Support letter
SBIA One-Pager on H.R. 6504
Press Release from introduction of the bill Available Here
- Would increase the maximum amount of leverage available to multiple SBIC debenture funds under common control to a limit of $350 million. The current cap for multiple SBICs under common control is $225 million.
Dodd-Frank Wall Street Reform and Consumer Protection Act
(Became Law on July 21, 2010)
Text Available Here
- Exempted SBICs from new regulations requiring private funds with over $150 million in assets under management to register with the SEC.
- Exempted SBICs from those entities which banks and hedge funds are sharply limited in investing in under the "Volcker Rule.”
American Recovery and Reinvestment Act of 2009
(Became Law on February 17, 2009)
Text Available Here
- Increased available SBA leverage for a single SBIC to $150 million and for a group of commonly managed SBICs to an aggregate of $225 million. Previously, the maximum amount of leverage available to an SBIC, or a group of commonly controlled SBICs, was $137 million.