SBIA Applauds House Passage Of Bipartisan Bill to Drive More Capital to Domestic Small Businesses
July 17, 2018
FOR IMMEDIATE RELEASE CONTACT:
Small Business Investor Alliance
WASHINGTON, D.C. (July 17, 2018) – The Small Business Investor Alliance, the leading association of lower middle market private equity funds and investors, applauds House Financial Services Committee Chairman Jeb Hensarling (R-TX) and Ranking Member Maxine Waters (D-CA) on the House passage of the bipartisan Jobs and Investor Confidence Act , which includes language from H.R. 2364, the Investing in Main Street Act and H.R. 79, the Helping Angels Lead our Startups Act. Frequently referred to as ‘Jobs Act 3.0’, the bill is comprised of a package of 32 bipartisan bills focused on driving investment and promoting capital access for small businesses, all of which had previously passed the Committee or full House with substantial bipartisan support. The measure passed the House of Representatives today by a vote of 406-4.
Chief among the included measures is H.R. 2364, the Investing in Main Street Act, which increases the percentage a financial institution can invest in a Small Business Investment Company (SBIC) while maintaining robust oversight to unlock additional growth capital for domestic small businesses and preserving important protections . The measure was introduced by Representative Judy Chu (D-CA) and cosponsored by Reps. Steve Knight (R-CA) and Grace Meng (D-NY). It passed the House of Representatives by a unanimous vote in July 2017.
“Capital access is a challenge felt by small businesses nationwide. The SBIC program supports small businesses and entrepreneurs so they can do what they do best — create jobs and grow the American economy,” said SBIA President Brett Palmer. “Thanks to the bipartisan work of Chairman Hensarling and Ranking Member Waters, the inclusion of the Investing in Main Street Act is a key first step toward increasing the amount of growth capital available for investment in domestic small businesses.”
Anchoring the Jobs Act 3.0 legislation is H.R. 79, the Helping Angels Lead Our Startups (HALOS) Act, which provides clarity for early stage businesses through its definition of “angel investor groups” and eases restrictive burdens on individuals seeking to invest in startups. Current rules inhibit the introduction of accredited investors and fund managers with startups, entrepreneurs
and other small business investment opportunities, harming economic growth and job creation in the United States. HALOS introduces a modest change to improve the process of raising investment capital under the securities laws and advance the ability of third party organizations to connect investors with small business investment opportunities.
SBIA has worked with Chairman Hensarling, Ranking Member Waters and bipartisan Members of Congress from the Small Business and Financial Services Committees to create a pro-small business regulatory environment. The passage of Jobs Act 3.0 will increase the amount of capital available for investment into domestic small businesses nationwide and will allow SBIA’s membership to continue supporting America’s entrepreneurs with less regulatory burden. SBIA looks forward to working with the Senate Banking Committee to encourage the bill’s swift advancement to the President’s desk.
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 50 years. For more information, visit www.SBIA.org or call (202) 628-5055.