SBIA Expresses Support for Investing in Main Street Act
House bill would allow more capital to flow to small businesses
January 25, 2023 (Washington, D.C.) – The Small Business Investor Alliance (SBIA), the association of America’s small business investors, is pleased to express strong support for bipartisan legislation introduced by Rep. Judy Chu (D-CA) and Rep. Andrew R. Garbarino (R-NY) that is designed to increase investments into American small businesses. The “Investing in Main Street Act of 2023” (H.R. 400) fixes conflicting laws that limited investments into Small Business Investment Companies (SBICs), which in turn invest exclusively in growing small businesses.
“SBICs are designed to help American small businesses grow,” said SBIA President Brett Palmer. “Removing barriers to small businesses seeking growth capital is simply good public policy.”
H.R. 400 would amend the Small Business Investment Act of 1958 to allow a bank or federal savings association to invest up to 15% of their capital and surplus in SBICs. This would correct a mismatch between bank law and small business investment law.
SBIA has long been a proponent of market-driven solutions to capital access and inclusivity. 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.
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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.