Investing in Main Street Act of 2017

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 2364) to amend the Small Business Investment Act of 1958 to increase the amount that certain banks and savings associations may invest in small business investment companies, subject to the approval of the appropriate Federal banking agency, and for other purposes.

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days to revise and extend their remarks and include extraneous material on the bill under consideration.

Mr. Speaker, I yield myself such time as I may consume.

As members of the Small Business Committee, we hear day in and day out how access to capital continues to challenge job creation and job growth. We must continue to work in a bipartisan fashion to create an environment for small businesses to flourish and grow.

One resource available to small employers is the Small Business Investment Company program, or the SBIC program, which currently runs on a zero cost subsidy to the American taxpayer.

The program enhances access to capital for small business throughout the Nation by utilizing a private sector-owned and SBA-licensed formula to increase equity capital.

Within the SBIC program, banks and Federal savings associations are limited to the amount of capital or surplus they can invest in an SBIC. Under current statute, the limit prevents no more than a 5 percent investment.

The legislation we have before us today, H.R. 2364, the Investing in Main Street Act of 2017, increases this investment threshold to 15 percent and requires any investment above the 5 percent mark to be subject to approval by the bank's regulator. This new 15 percent marker brings parity to the program with rules by the Office of the Comptroller of the Currency.

As the Nation's small businesses continue to experience difficulties accessing capital, assistance like the SBIC program delivers, and has a track record to prove it. Some of the Nation's most prominent companies have received SBIC financing in the past. The update provided in H.R. 2364 will continue and build upon the success of the program.

This bill has broad bipartisan support and was favorably passed out of committee unanimously. I would urge my colleagues to vote ``yes'' on

Mr. Speaker, I have no further speakers, and I reserve the balance of my time.

Mr. Speaker, I continue to reserve the balance of my time.

Mr. Speaker, I yield myself such time as I may consume.

In closing, I would like to thank the gentlewoman from California (Ms. Judy Chu) and the gentlewoman from North Carolina (Ms. Adams) for their leadership in introducing this and pushing this important legislation forward.

Once again, it is a bipartisan piece of legislation, and we have worked together. Republicans and Democrats working together, isn't that something? So we appreciate their hard work on this.

With small businesses being the cornerstones of nearly every community in the Nation, we must continue to work together to create an environment for growth and job creation. The 29 million small businesses all across the Nation are depending on us actually working together on things like this.

I know the ranking member of the committee likes to say, ``There aren't Republican small businesses; there aren't Democratic small businesses; they are just small businesses,'' and she is absolutely right. So I really do appreciate their working on this legislation.

H.R. 2364 is commonsense legislation that enjoys bipartisan support. I urge my colleagues to vote ``yes'' on this.

I yield back the balance of my time.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I rise in support of my bill, H.R. 2364, the Investing in Main Street Act of 2017.

Small businesses are the backbone of our economy, accounting for two out of every three new jobs. So as part of our commitment to creating opportunities and growing our economy, it is our responsibility to help more small businesses succeed.

The SBA's Small Business Investment Company, or SBIC, program is an effective tool that facilitates private investment into early stage startup small businesses across the country, and all at no Federal cost.

Tesla, FedEx, Apple, Intel, and Costco are just a few examples of the thousands of small businesses that have successfully used the Small Business Investment Company program during their early stages of growth.

One of the SBIC program's greatest strengths is its hands-off approach, giving fund managers the autonomy to invest in almost any business sector they choose, from apparel to cutting-edge technology. This freedom, coupled with sound investment strategies, has led to its success.

In fact, in 2016, the SBIC program provided $6 billion in financing to 1,200 small businesses and helped to sustain over 120,000 jobs. It has afforded America's small businesses an invaluable opportunity to grow their innovative ideas.

However, the SBIC program is currently restricted from taking more than 5 percent of capital investments from banks due to an outdated provision in the Small Business Investment Act of 1958. At the same time, current banking regulations established by the Office of the Comptroller of the Currency allow these banks to invest up to 15 percent of their capital and surplus into SBICs.

The Investing in Main Street Act will correct this discrepancy by allowing banks and Federal savings associations to invest up to 15 percent of their holdings to these funds to match current banking regulations. This change will strengthen and grow the SBIC program, unleashing more capital to small businesses, and all at no cost to the taxpayer. That means more entrepreneurs will be able to access the capital they need to grow their businesses and hire more workers.

This legislation makes a sensible change to address the number one need of small firms: accessing capital.

I would like to thank our cosponsors, Representative Knight and Representative Meng, for their support, and I ask my fellow Members to support this bill.

I reserve the balance of my time.

Mr. Speaker, I yield 3 minutes to the gentlewoman from North Carolina (Ms. Adams), the ranking member of the committee.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, access to capital is the lifeblood of every small business. The SBIC program fills the gap between the availability of venture capital and the needs of small businesses in startup and growth situations.

The SBIC program has long been an important way of channeling capital to leading-edge, high-growth companies. In fact, some of the Nation's most successful corporations received early-stage financing from SBICs. Without it, they may not be the companies that they are today.

The key to the program's success is leveraging Federal funds to increase the amount of private capital invested in such promising startup companies. By dramatically increasing the amount of capital in the SBIC program, the changes made by H.R. 2364 will result in significant small business investment. As such, I once again urge my colleagues to support this measure.

Mr. Speaker, I yield back the balance of my time.

Mr. Speaker, I thank the gentlewoman from California for yielding.

Mr. Speaker, small businesses are the backbone of our economy. This is particularly true in my home State of North Carolina. According to a recent report, North Carolina is the number one State in the country for starting a small business. As such, I will support programs that allow them to flourish.

Today, as vice ranking member of the Small Business Committee, I rise to express my full support for H.R. 2364, the Investing in Main Street Act.

The number one concern raised by small businesses is the lack of access to capital; and because of this access problem, small businesses tend to rely more on personal credit cards, often with higher interest rates, than on more affordable small business loans.

The Investing in Main Street Act helps free up affordable capital, and this bill increases access to capital for small businesses by raising the percentage capital banks and savings associations may invest in small businesses up to 15 percent. With increased opportunity, entrepreneurs will be able to grow and expand their businesses as well as hire more employees, allowing them to reach their full potential.

The Investing in Main Street Act is good for business, it is good for small business, and it is good for our economy.

I want to thank Chairman Chabot and Ranking Member Velazquez and all of my colleagues for supporting this bill, and I urge my colleagues to support this bill as we may continue to give small businesses opportunities to thrive and employ American workers.

Mr. Speaker, I rise in support of H.R. 2364, which authorizes financial institutions to invest more of their capital in small business investment funds.

As it stands, federally insured banks and savings associations are limited to investing a maximum of 5 percent of their capital and surplus in Small Business Investment Companies (SBIC).

Small Business Investment Companies (SBIC) are private funds, licensed and regulated by the Small Business Administration, that make investments in small businesses using their own capital or loans borrowed with an SBA guarantee.

Under H.R. 2364, financial institutions would be able to invest as much as 15 percent of their capital and surplus in SBICs.

There are over 8 million small businesses in America, which account for 54 percent of all U.S. sales.

Small businesses also provide 55 percent of all jobs and 66 percent of all net new jobs since the 1970s.

With more than half of Americans either owning or working for a small business, it is clear these companies are a vital part of our nation economy.

As the representative for Houston, one of the leading cities for entrepreneurs and small businesses, I remain mindful of the significance of, and have strongly advocated for policies that will preserve and create jobs and keep our nation's small business sector strong.

When small firms are able to grow and thrive, we all benefit from their innovations, job-creating power, and ability to make the U.S. more competitive globally.

That is why I urge all members to join me in supporting H.R. 2364.