Investing in Main Street Act of 2019

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 116) 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 in which to revise and extend their remarks and include extraneous material on the measure under consideration.

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

Mr. Speaker, I rise in support of H.R. 116, the Investing in Main Street Act of 2019.

Since 1958, the Small Business Investment Company, SBIC, program has been an integral part of SBA's mission to provide small businesses with capital and create jobs. It achieves this purpose by partnering private and public investments in early-stage startup businesses.

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

Just look at Apple, Tesla, and FedEx. They have all achieved what we hope for every small business: extraordinary growth and success. And they each received early-stage financing from SBICs.

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.

Access to capital remains the number one priority for small firms across America. The SBIC program has helped increase the flow of capital to worthy small companies, yet we can do more to ensure they can meet growing demand.

H.R. 116 will strengthen and grow the SBIC program by letting banks and Federal savings associations invest up to 15 percent of their holdings into SBICs. This increase in capital, at no cost to the taxpayers, provides entrepreneurs with enhanced opportunities to grow their businesses and create jobs.

The goal of the SBIC program is to fill the gap between the availability of venture capital and the needs of small

businesses in startup and growth situations. Today's bill makes a sensible change to address this goal by facilitating increased investment in small firms.

I applaud Congresswoman Chu in identifying this issue and finding a solution. I, therefore, ask my fellow Members to support this bill, and I reserve the balance of my time.

Mr. Speaker, I yield as much time as she may consume to the gentlewoman from California (Ms. Judy Chu), author of this legislation.

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

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 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. With more than $24 billion of capital under management, the SBIC program has a proven track record of success.

Creating parity in the SBIC program by raising the investment threshold from 5 percent to 15 percent will result in significant small business investment; and like we all know, providing funds to small firms results in real growth in our local communities.

H.R. 116 has bipartisan support, and it is endorsed by the U.S. Chamber of Commerce. As such, I once again urge my colleagues to support this measure.

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

Mr. Speaker, on that I demand the yeas and nays.

Madam Speaker, due to a scheduled medical procedure, I was physically absent from the House of Representatives from January 10, 2019 to February 5, 2019. During that time, I missed 44 recorded votes. Had I been present for those votes, I would have voted: on Roll Call No. 22 on the Republican Motion to Recommit on H.R. 267, I would have voted ``Yea;'' on Roll Call No. 23 on the Passage of H.R. 267, I would have voted ``Nay;'' on Roll Call No. 24 on the Republican Motion to Recommit on H.R. 265, I would have voted ``Yea;'' on Roll Call No. 25 on the Passage of H.R. 265, I would have voted ``Nay;'' on Roll Call No. 26 on the Republican Motion to Recommit on H.R. 266, I would have voted ``Yea;'' on Roll Call No. 27 on the Passage of H.R. 266, I would have voted ``Nay;'' on Roll Call No. 28 on the Passage of S. 24, I would have voted ``Yea;'' on Roll Call No. 29 on the Passage of H.R. 221, I would have voted ``Yea;'' on Roll Call No. 30 on the Passage of H.R. 116, I would have voted ``Yea;'' on Roll Call No. 31 on the Passage of H.J. Res. 27, I would have voted ``Nay;'' on Roll Call No. 32 on the Passage of H. Res. 41, I would have voted ``Yea;'' on Roll Call No. 33 on the Passage of H.R. 135, I would have voted ``Yea;'' on Roll Call No. 34 on Ordering the Previous Question on H. Res. 43, I would have voted ``Nay;'' on Roll Call No. 35 on the Adoption of H. Res. 43, I would have voted ``Nay;'' on Roll Call No. 36 on the Passage of H.R. 190, I would have voted ``Yea;'' on Roll Call No. 37 on the Passage of Amendment No. 2 offered by Mr. McGovern (D- MA), I would have voted ``Nay;'' on Roll Call No. 38 on Ordering the Republican Motion to Recommit, I would have voted ``Yea;'' on Roll Call No. 39 on the Passage of H.R. 268, I would have voted ``Nay;'' on Roll Call No. 40 on the Adoption of H. Res. 52, I would have voted ``Nay;'' on Roll Call No. 41 on the Passage of H.R. 150, I would have voted ``Yea;'' on Roll Call No. 42 on the Passage of H.J. Res. 30, I would have voted ``Yea;'' on Roll Call No. 43 on Republican Motion to Recommit, I would have voted ``Yea;'' on Roll Call No. 44 on the Passage of H.R. 676, I would have voted ``Yea;'' on Roll Call No. 45 on the Passage of H.R. 328, I would have voted ``Yea;'' on Roll Call No. 46 on the Passage of H.J. Res 28, I would have voted ``Nay;'' on Roll Call No. 47 on the Passage of H. Res. 61, I would have voted ``Nay;'' on Roll Call No. 48 on the Republican Motion to Recommit, I would have voted ``Yea;'' on Roll Call No. 49 on the Passage of H.R. 648, I would have voted ``Nay;'' on Roll Call No. 50 on the Republican Motion to Recommit, I would have voted ``Yea;'' on Roll Call No. 51 on the Passage of H.J. Res. 31, I would have voted ``Nay;'' on Roll Call No. 52 on the Passage of H.R. 624, I would have voted ``Yea;'' on Roll Call No. 53 on the Passage of H.R. 502, I would have voted ``Yea;'' on Roll Call No. 54 on Approving of the Speaker's Journal, I would have voted ``Yea;'' on Roll Call No. 55 on the Motion to Adjourn, I would have voted ``Nay;'' on Roll Call No. 56 on the Passage of H.R. 428, I would have voted ``Yea;'' on Roll Call No. 57 on the Passage of H.R. 449, I would have voted ``Yea;'' on Roll Call No. 58 on the Passage of H.R. 769, I would have voted ``Yea;'' on Roll Call No. 59 on the Motion to Table the Motion to Reconsider H. Res. 77, I would have voted ``Nay;'' on Roll Call No. 60 on Ordering the Previous Question on H. Res. 87, I would have voted ``Nay;'' on Roll Call No. 61 on the Passage of H. Res. 87, I would have voted ``Yea;'' on Roll Call No. 62 on the Passage of Amendment No. 3 offered by Mrs. Trahan (D-MA), I would have voted ``Nay;'' on Roll Call No. 63 on the Republican Motion to Recommit, I would have voted ``Yea;'' on Roll Call No. 64 on the Passage of H.R. 790, I would have voted ``Nay;'' and on Roll Call No. 65 on the Passage of H. Res. 79, I would have voted ``Nay.''

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

Mr. Speaker, I rise in support of H.R. 116, the Investing in Main Street Act of 2019.

Small businesses across the country are reporting increased confidence and heightened optimism. Despite these improving economic conditions for the Nation's true job creators, many of them are still facing hurdles when it comes to accessing capital to grow and expand their operations.

To assist small businesses with their financing needs, the SBA, Small Business Administration, offers the Small Business Investment Company program, also known as the SBIC program.

While currently running on a zero-cost subsidy to the American taxpayer, the SBIC program increases access to long-term capital through a private equity financing model. SBICs are privately owned but licensed and regulated by the SBA.

The Investing in Main Street Act of 2019 provides a simple and commonsense solution to a limitation that is holding back growth within the SBIC program.

Currently, financial institutions and savings associations are prohibited from investing more than 5 percent of capital or surplus in an SBIC. In order to assist small businesses as they seek capital, H.R. 116 increases the 5 percent limitation to 15 percent, subject to the approval of the financial institution's regulator.

In the 115th Congress, an identical bill was favorably reported out of the Small Business Committee, unanimously, and passed on the House floor via voice vote.

Mr. Speaker, I thank the gentlewoman from California (Ms. Judy Chu) and the gentleman from South Carolina (Mr. Norman) for continuing their work on this legislation. As always, I thank the gentlewoman from New York (Ms. Velazquez) the now-chairman of the Small Business Committee, for advancing this bipartisan bill that will further improve the SBIC program.

Small businesses, from Ohio to Texas to California, are transforming towns and communities across the country. They are building the Nation's newest products and offering the newest services, all while constantly innovating. They are nimble, swift, and often very flexible. We must work together to create an environment where they are free to grow and create jobs.

Therefore, I urge my colleagues to support this bill, the Investing in Main Street Act, and I reserve the balance of my time.

Mr. Speaker, I have no further speakers, so I am prepared to close.

Mr. Speaker, again, I thank the gentlewoman for working with us on this. The SBIC program invests in small firms across the country, providing them with the working capital they need to create and innovate new products and new technologies.

This bipartisan legislation passed the House, as we mentioned before, unanimously last Congress, and it removes a restriction that has hindered the growth of the SBIC program. It will allow it to grow and support more firms all across America, from Portland, Maine, to Portland, Oregon.

I urge my colleagues to support this bipartisan legislation and yield back the balance of my time.

Mr. Speaker, I rise in support of my bill, H.R. 116, the Investing in Main Street Act of 2019.

I am so pleased that the House is considering this bill at the very start of this new Congress because small businesses are the backbone of our economy. They account for two out of every three new jobs and lead the way in innovation.

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

Staples, 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. 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.

Now, many decades ago, the SBIC program was restricted from taking more than 5 percent of capital investments from banks due to this provision in the Small Business Investment Act of 1958. That provision is still the law. However, since then, banking regulations established by the Office of the Comptroller of the Currency allow these same banks to invest up to 15 percent of their capital and surplus into SBICs.

I introduced the Investing in Main Street Act with Representative Ralph Norman of South Carolina to correct this discrepancy. This bipartisan bill would allow 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 their workers.

This legislation makes a sensible change to address the number one need of small firms accessing capital. I, therefore, ask my fellow Members to support this bill.

Mr. Speaker, I rise today in support of H.R. 116, the ``Investing in Main Street Act of 2019.''

H.R. 116 amends 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.

Texas has, for a historical fourth time, been ranked by CNBC as the number one spot for ``America's Top States for Business.''

WalletHub also recognized Texas as a small business friendly state by ranking Texas as the best state to start a business overall and giving Texas first place in the business environment category which looks at average growth in number of small businesses, growth of business revenues, five-year business survival rate, and job growth, amongst other categories.

Houston alone has almost 120,000 small business.

This makes Houston ninth nationwide and second statewide for total number of small businesses.

These small businesses enjoy calling home the 13th friendliest city in the nation for small business owners.

Over 99 percent of the businesses in Houston are considered small.

4.0 GPA is one of the many Houston small business success stories.

Founded by Henry Keculah, Jr. in 2016, 4.0 GPA's mission is to provide all students, regardless of their socioeconomic background, with the opportunity to attend an institution of higher education.

Henry, Jr. was one of five 2018 Upstart Award Finalist.

Upstart awards recognize African-American entrepreneurs who run successful companies and also give back to their communities.

H.R. 116 is common sense legislation that supports small business like 4.0 GPA, and even the Chamber of Commerce has written in support of it.

I ask my colleagues to join me in supporting H.R. 116.