New Legislation Would Unlock Growth Capital for American Small Businesses
SBIA Expresses Support for Investing in Main Street Act
January 29, 2025 (Washington, D.C.) – The Small Business Investor Alliance (SBIA), the association representing America’s small business investors, is pleased to express its strong support for bipartisan legislation that will help unlock critical growth capital for American small businesses. The “Investing in Main Street Act of 2025” (H.R. 754), introduced by U.S. Reps. Judy Chu (D-CA), Brad Finstad (R-MN), Andrew R. Garbarino (R-NY), and LaMonica McIver (D-NJ), aims to resolve outdated and conflicting laws that have unnecessarily restricted capital flow to Small Business Investment Companies (SBICs), which specialize in supporting the growth and success of small businesses across the nation.
The bill would amend the Small Business Investment Act of 1958 to align banking and small business investment laws. Specifically, the bill would enable banks and federal savings associations to invest up to 15% of their capital and surplus into SBICs, correcting a long-standing statutory inconsistency between bank law and small business investment law. By addressing these regulatory roadblocks, the legislation will empower small businesses to access the funding they need to create jobs, innovate, and drive economic growth in their communities.
“Small businesses create two out of every three new jobs in America, yet they often face significant challenges in accessing growth capital,” said SBIA President Brett Palmer. “By modernizing outdated regulations and allowing greater investment in SBICs, this bill will ensure that small businesses have the capital they need to thrive. We thank Representatives Chu, Finsted and McIver for their leadership and commitment to empowering America’s job creators.”
The SBIC program has a proven track record of success, leveraging private capital to support small businesses while maintaining a strong focus on public accountability and fiscal responsibility. SBIC-backed businesses have created or sustained millions of jobs and contributed to the growth of countless industries, from technology and manufacturing to healthcare and beyond. Expanding access to this critical source of funding will further enhance the program’s ability to fuel innovation and opportunity in communities nationwide.
SBIA has consistently championed market-driven solutions to enhance capital access and economic inclusivity. The Investing in Main Street Act is a testament to the power of bipartisan cooperation in advancing policies that strengthen America’s small business ecosystem. SBIA stands ready to work with Congress to ensure the passage of this vital legislation and to promote policies that support the success of entrepreneurs and investors alike.
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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.
About Small Business Investment Companies
Small Business Investment Companies are highly regulated, venture capital and private equity funds that invest exclusively in domestic small businesses to help them grow and create American jobs. SBICs pursue investments in a broad range of industries, geographic areas, and stages of investment. Since its inception, the Small Business Investment Company program has facilitated access to patient capital for tens of thousands of small businesses and has created millions of American jobs. The SBIC program is one of the best examples of a public-private partnership, matching federal funding with experienced private investors to support domestic small business growth at zero risk to the American taxpayer.
