Senator Young and colleagues reintroduce bill to increase investment in small businesses

U.S. Senators Todd Young (R-Ind.), Ruben Gallego (D-Ariz.), Jim Risch (R-Idaho), and Tammy Duckworth (D-Ill.) introduced the Investing in Main Street Act to increase investment in small businesses by permitting banks to invest up to 15 percent of their capital in Small Business Investment Companies (SBIC). 

In 1958, the Small Business Administration launched the SBIC program to facilitate and regulate investment from privately owned companies to U.S. small businesses. This program has successfully allowed more small businesses across America to expand their competitive edge, create more jobs, and contribute to the local economy. Over the last five years, SBICs have invested nearly $549 million to 109 small businesses throughout Indiana. 

“The Small Business Investment Company program has provided critical support to countless Hoosier small businesses,” said Senator Young. “Our legislation will help spur further investment in innovative startups and unlock capital for existing, high-growth small businesses across America.”

“Starting a small business gives those willing to work hard a shot at achieving the American dream. But without access to capital, it’s nearly impossible to get a small business off the ground,” said Senator Gallego. “This commonsense, bipartisan bill helps unlock more capital for Main Street, empowering small businesses across the country to grow, innovate, and create jobs. I’m proud to introduce it with my colleagues.”

“Idaho small businesses fuel our economy, employ our friends and family, and are the lifeblood of our communities,” said Senator Risch. “The Investing in Main Street Act supports our Gem State entrepreneurs’ access to early-stage capital by allowing banks to invest more into Small Business Investment Companies.”

“Small businesses are the backbone of our economy—when they grow, our economy grows. Yet too many small business owners have trouble accessing affordable capital to grow their business and create new jobs in their communities,” said Senator Duckworth. “I am proud to join Senators Young, Risch and Gallego in introducing this bipartisan legislation to help get more dollars in the hands of small business owners in Illinois and across our nation.”

The legislation is supported by Main Street Alliance, Small Business Majority, and Small Business Investor Alliance (SBIA).

“Increasing access to capital for small businesses to grow is essential to build an economy that works not just for large corporations and the well-connected. The Main Street Act is designed to allow lenders to include a larger portion of their lending portfolio to support those small businesses that need larger investments than may be normally available through commercial lending. Without the Main Street Act, many businesses may otherwise not receive the volume of investment necessary to make capital investments, ramp up hiring, or open up new markets for their products. While there is more to be done, this is a good step in the right direction to expand capital access for fast-growing, promising small businesses,” said Main Street Alliance Executive Director Richard Trent.

"Legislation that creates more opportunities for small business owners to access the capital needed to start and grow a business would be a significant win for America's entrepreneurs. Our research found that just one-third of small business owners who sought funding in the last year were able to secure it, and less than one-third said that they received sufficient funding. Until we address this shortfall between need and availability in small business lending, many of our nation's small firms will struggle to get ahead,” said Founder and CEO of Small Business Majority John Arensmeyer.

“This bill offers a smart solution to an accidental regulatory barrier that limits investment in American small businesses,” said SBIA President Brett Palmer. “By updating outdated regulations, this legislation will help funnel vital funding into our nation’s small businesses – economic engines that drive two-thirds of U.S. job creation. We thank Senator Young, Senator Gallego, Senator Risch and Senator Duckworth for their leadership and urge swift Senate passage.”

Full text of the Investing in Main Street Act can be found here.