U.S. Sens. Todd Young (R-IN), Ruben Gallego (D-AZ), Jim Risch (R-ID) and Tammy Duckworth (D-IL) reintroduced legislation on July 10 to increase investment in small businesses.
The legislation, the Investing in Main Street Act, would allow banks to invest up to 15 percent of their capital in Small Business Investment Companies (SBIC). The legislation would amend the Small Business Administration’s SBIC program originally launched in 1958. Over the last five years, SBICs have investing nearly $549 million to 109 small businesses throughout Indiana, as an example, and routinely allow small business to expand their competitive edge, create more jobs and contribute to the local economy.
“The Small Business Investment Company program has provided critical support to countless Hoosier small businesses,” Young said. “Our legislation will help spur further investment in innovative startups and unlock capital for existing, high-growth small businesses across America.”
The legislation is supported by business and small business organizations, including the Main Street Alliance.
“Increasing access to capital for small businesses to grow is essential to build an economy that works not just for large corporations and the well-connected,” Richard Trent, executive director of Main Street Alliance said. “The Main Street Act is designed to allow lenders to include a larger portion of their lending portfolio to support those small businesses that need larger investments than may be normally available through commercial lending. Without the Main Street Act, many businesses may otherwise not receive the volume of investment necessary to make capital investments, ramp up hiring, or open up new markets for their products.”