House Small Business Committee Budget Draft Incorporates Key SBIC Priorities

House budget language includes provisions to expand access to capital for small businesses

WASHINGTON, DC (September 9, 2021) – The Small Business Investor Alliance (SBIA), the association for private equity funds investing in American small businesses, is pleased to express strong support for the House Small Business Committee’s proposals to enhance and improve the SBIC program to better serve a broad swath of American small businesses. As the budget reconciliation process works its way through Congress, the $3.5 trillion dollar budget has been broken up and assigned to the various Congressional Committees to write their respective sections of the bill. The House Small Business Committee released their $25 billion part of the package and it has passed out of Committee, incorporating a number of SBIA priorities such as a new SBIC Equity Program and the creation of a MicroCap SBIC Program. Below are some quick highlights:

  • The creation of a new, fully funded $9.5 Billion Venture SBIC program
  • Raising the “family of funds” limit for debenture SBICs by $50M (to $400M)
  • Allowing the Venture SBIC program to create “funds of funds”
  • Creation of an Emerging Managers Program inside the SBIC Program that will allow more new funds and new beneficial partnerships with existing SBICs (with further possible increases in the family of funds limits for participating entities)
  • Creation of a new MicroCap SBIC license
  • Funding for the SBA’s Office of Rural Affairs to host Rural Small Business Conferences and other services
  • Creation of an SBIC Working Group at SBA with outside market participants

SBIA Summary of Final SBIC Provisions >
SBIA Summary of Mark Up >
Full text of Small Business section >
SBIA Letter of Support >

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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.

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