House Passes Investing in Main Street Act, Advancing Support for Small Businesses
SBIA Expresses Support for Investing in Main Street Act
February 24, 2025 (Washington, D.C.) – The U.S. House of Representatives today passed the Investing in Main Street Act, a critical bipartisan measure that will expand access to capital for America’s small businesses. Sponsored by U.S. Representatives Judy Chu (D-CA), Brad Finstad (R-MN), Andrew R. Garbarino (R-NY), and LaMonica McIver (D-NJ), the legislation strengthens the Small Business Investment Company (SBIC) program, providing much-needed resources to drive economic growth and job creation in communities across the country.
“We applaud the House for recognizing the importance of fueling entrepreneurship and expanding opportunities for small businesses,” said SBIA President Brett Palmer. “This legislation is a significant step forward in strengthening investment in Main Street, and we thank Representatives Chu, Finstad, Garbarino, and McIver for their leadership in championing this vital reform.”
By aligning banking and small business investment laws, the bill resolves outdated regulatory inconsistencies that have restricted capital flow to Small Business Investment Companies (SBICs), allowing banks and federal savings associations to invest up to 15% of their capital and surplus into SBICs and thereby providing small businesses with greater access to the funding they need to expand, create jobs, and strengthen local economies.
Next Steps
With strong bipartisan support in the House, attention now turns to the Senate, where SBIA is actively working with lawmakers to introduce a companion bill. SBIA will continue to engage with key stakeholders to urge swift Senate action to advance this critical legislation.
The SBIC program has a long-standing track record of supporting small business growth, creating millions of jobs, and fostering economic innovation. The Investing in Main Street Act will further strengthen this public-private partnership, expanding opportunities for businesses in communities nationwide.
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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.
