NFIB Endorses BDC Modernization Bill
March 7, 2018
March 7, 2018
Dear Senators Heller and Manchin:
On behalf of the National Federation of Independent Business (NFIB), the nation’s leading small business advocacy organization, I am writing in support of S. 2324, the Small Business Credit Availability Act. This bill will enable Business Development Companies (BDCs) to operate with more available capital to lend to small businesses.
BDCs are key sources of capital for many small businesses, and, in many cases, an alternative to acquiring credit from a large bank. Research indicates that small business owners whose primary financial institution is a large bank have more difficulty acquiring credit than those utilizing smaller banks, and the number of small banks is declining.1,2 S. 2324 will allow BDCs to free up capital, which can be used to service the needs of small businesses.
According to the NFIB’s Small Business Optimism Index,3 a record number of small business owners say that now is a good time to expand. Allowing BDCs to deploy more capital provides small businesses a funding option that may not have been available to them.
Small businesses benefit when there is competition for their business. This legislation will provide small businesses another tool to help them expand and grow the economy. NFIB looks forward to working with you to protect small businesses in the 115th Congress.
Juanita D. Duggan
President & CEO
1 Federal Reserve, 2016 Small Business Credit Survey, https://www.newyorkfed.org/medialibrary/media/smallbusiness/2016/SBCS-ReportEmployerFirms-2016.pdf. 2 Federal Deposit Insurance Corporation, Commercial Banks – Historical Statistics on Banking, https://www5.fdic.gov/hsob/HSOBRpt.asp. 3 NFIB Research Foundation, Small Business Economic Trends (January 2018), https://www.nfib.com/assets/SBET-January-2018-1.pdf.