Three bills approved by the House Small Business Committee on Monday aim to give small businesses more access to capital by modernizing lending and investment programs that support small businesses and startups.
The committee approved the Small Business Investment Opportunity Act (H.R. 2333), the Microloan Modernization Act (H.R. 2056), and the Investing in Main Street Act (H.R. 2364), with bipartisan support.
“Access to capital continues to be a major problem for small business owners who want to start or grow their company,” U.S. Rep. Steve Chabot (R-OH), the chairman of the committee, said. “These three bills are another way the Small Business Committee has been working to help our nation’s job creators.”
The Small Business Investment Opportunity Act would increase the Small Business Investment Company (SBIC) program’s individual leverage limit. The program provides long-term capital flows to small businesses.
“Access to capital can be a serious barrier to growth for small businesses, and the SBIC program is an excellent way of making those funds available,” U.S. Rep. Steve Knight (R-CA), the chairman of the Subcommittee on Contracting and Workforce and the bill’s sponsor, said. “This bill would expand the amount of capital available to the entrepreneurs in our community to help them grow their operations and hire more of our neighbors.”
Meanwhile, the Investing in Main Street Act, introduced by U.S. Rep. Judy Chu (D-CA), would increase the amount that financial institutions can invest in SBICs.
“I’m so pleased that both Democrats and Republicans on our committee could come together (on Monday) to help advance this important bill that will increase investment in our small businesses,” Chu said. “Small businesses are the backbone of our economy, but I know, from talking to entrepreneurs in my district and around the country, that one of the greatest challenges to success is access to capital. That is what this bill will address, by letting banks or federal savings associations invest up to 15 percent of their holdings into SBICs.”
U.S. Rep. Stephanie Murphy (D-FL) introduced the Microloan Modernization Act to improve the Small Business Administration’s (SBA) Microloan program. The program provides loans of up to $50,000 for start-ups for working capital, inventory, fixtures or equipment.
“I’m proud of the bipartisan progress we are making together to help small businesses grow, including those in central Florida,” Murphy, the ranking member of the Subcommittee on Contracting and Workforce, said. “My microloans bill will help more entrepreneurs and small businesses get the capital they need to start and grow, especially women and minorities….”