SBIA applauds introduction of “MicroCap SBIC” bill
Bipartisan legislation would broaden access to capital for entrepreneurs and small businesses in underserved areas
WASHINGTON, DC (May 20, 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 bipartisan legislation introduced today by U.S. Sens. John Hickenlooper (D-CO) and James Risch (R-ID). The “MicroCap Small Business Investing Act” aims to expand access to capital for small businesses by authorizing the licensing of a smaller fund within the parameters of the current Small Business Investment Company (SBIC) program. The goal of the legislation is to broaden the pool of fund managers in the SBIC program by providing a wider on-ramp to talented people in underserved geographies that may have limited access to participating in this successful small business program.
“This new license would deliver a powerful addition to the SBIC program and provide greater capital access to small businesses, especially those in underserved areas,” said SBIA President Brett Palmer.
SBIA has long been a proponent of market-driven solutions to capital access and inclusivity. Expanding the program this way increases capital access to underserved places and people, with strong taxpayer protections.
Under the legislation, first-time fund managers will be able to receive an SBIC license to serve smaller markets and underserved people. 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.