SBIA Applauds Senate Committee Passage of Two Key Bills Spurring Small Business Growth
March 19, 2018
WASHINGTON, D.C. (March 15, 2018) – The Small Business Investor Alliance (SBIA), the leading association of lower middle market private equity funds and investors, today applauded the Senate Small Business Committee for its unanimous passage of the Small Business Opportunity Act (S. 2527) and the Spurring Investment in Communities Act (S.1995).
Sponsored by Sen. Ben Cardin (D-MD) and cosponsored by Senators Jim Risch (R-ID) and John Kennedy (R-LA), the Small Business Opportunity Act increases the SBIC individual fund limit from $150 to $175 million. The limit has not been increased since 2009, and the change could result in hundreds of millions in capital available for small businesses throughout the country at no additional cost to taxpayers. The bill passed the House last year with overwhelming bipartisan support.
The Spurring Business in Communities Act, sponsored by Sen. Marco Rubio (R-FL), directs the Small Business Administration to give SBIC licensing review priority to applicants in underserved states where SBICs are not present, or where the number of licensees per capita is less than the median number of licensees per capita for all states. Expanding the program to underserved states may increase the potential for entrepreneurs and small businesses owners operating in those states to access growth capital.
Both bills work to spur small business investment and received the support of the SBIA.
“SBIA thanks to Sen. Bill Cardin, Sen. Marco Rubio, and the Senate Small Business Committee for their support of domestic small business,” said Alliance President Brett Palmer. “The job-creating SBIC program is a critical source of growth capital for American small and mid-sized businesses across America. The capital and management expertise provided through the program is not only creating needed jobs but is helping to improve communities and lives.”
Small Business Investment Companies (SBICs) are highly regulated private funds that invest exclusively in domestic small businesses and facilitate private investment into domestic small businesses while operating at a zero-subsidy rate. The program was created in 1958 to help overcome the scale challenges associated with small business investment. A recent Library of Congress study found that SBIC-backed small businesses created 3 million new jobs and supported an additional 6.5 million jobs from 1995-2014, a period that included the Great Recession.
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.