Companion “Investing in Main Street Act” introduced in the Senate
July 22, 2021
Bill would allow banks to invest more capital in Small Business Investment Companies
WASHINGTON, DC (July 23, 2021) – The Small Business Investor Alliance (SBIA), the association for private equity funds investing in American small businesses, is pleased to recognize another step toward increasing capital access for American small businesses with the introduction of a bipartisan bill in the U.S. Senate. The “Investing in Main Street Act” (S.2451), introduced by U.S. Senators Todd Young (R-IN), Tammy Duckworth (D-IL), and Jim Risch (R-ID), is a companion to bipartisan House legislation introduced by U.S. Representatives Judy Chu (D-CA) and Andrew Garbarino (R-NY). Like its House counterpart, the Senate bill is designed to release more capital investment into American small businesses.
The legislation would allow certain banks and savings associations to invest more into small business investment companies (SBICs) by lifting an outdated statutory cap, while ensuring bank regulators maintain sufficient oversight of bank investment in SBICs. The Senate bill would amend the Small Business Investment Act of 1958 to allow a bank or federal savings association to invest up to 15% of their capital and surplus in SBICs, still subject to the approval of the bank regulator if above 5%. This would correct the mismatch between bank regulations and small business investment law without amending bank laws or regulations.
SBIA has long been a proponent of market-driven solutions to capital access and inclusivity. Small business investors want to work with the Administration and Congress on a bipartisan basis to promote policies that expand the benefits of free enterprise to all Americans.
SBIA letter of support >
Senate press release >
Full bill text >
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About the Small Business Investor Alliance (SBIA)
The Small Business Investor Alliance (SBIA) is the premier organization of lower middle market private equity funds and investors. SBIA works on behalf of its members as a tireless advocate for policies that promote competitive markets and robust domestic investment for growing small businesses. SBIA has been playing a pivotal role in promoting the growth and vitality of the private equity industry for over 60 years. For more information, visit www.SBIA.org or call (202) 628-5055.