Companion “MicroCap SBIC” bill introduced in the House
Creation of a MicroCap SBIC license would broaden access to capital for entrepreneurs and small businesses in underserved areas
WASHINGTON, DC (June 21, 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 a “MicroCap SBIC” license with the introduction of a bipartisan bill in the U.S. House of Representatives. The legislation, sponsored by U.S. Rep. Joe Neguse (D-CO), Co-Chair of the Innovation and Entrepreneurship Caucus, and U.S. Rep. Young Kim (R-CA), Ranking Member of the House Small Business Subcommittee on Innovation, Entrepreneurship and Workforce Development, is a companion to bipartisan Senate legislation introduced in May by U.S. Sens. John Hickenlooper (D-CO) and James Risch (R-ID). Like its Senate counterpart, the House bill would authorize the Small Business Administration (SBA) to allow for smaller funds with a wider on ramp for qualified new fund managers within the parameters of the current Small Business Investment Company (SBIC) program.
SBIA has long been a proponent of market-driven solutions to capital access and inclusivity. A MicroCap SBIC license would increase capital access to underserved places and people, with strong taxpayer protections. 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.
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.