[Congressional Record Volume 161, Number 31 (Tuesday, February 24, 2015)]
[Senate]
[Page S1078]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. RISCH (for himself, Mr. Cardin, Ms. Ayotte, and Mrs. 
        Shaheen):
  S. 552. A bill to amend the Small Business Investment Act of 1958 to 
provide for increased limitations on leverage for multiple licenses 
under common control; to the Committee on Small Business and 
Entrepreneurship.
  Mr. CARDIN. Mr. President, I am pleased join my colleague, Senator 
Risch, in introducing the Small Business Investment Company Capital, 
SBIC, Act of 2015. And I am pleased that Congressman Chabot, Chairman 
of the House Small Business Committee, is introducing the same bill on 
the House side today.
  This bipartisan legislation makes a common-sense change to the Small 
Business Investment Company, SBIC, program run by the Small Business 
Administration, SBA. This change will provide increased support to some 
of the program's most successful participants, SBICs that run multiple 
funds at a time. At no additional cost to the taxpayer, the SBIC Act 
will raise the limit that a ``family of funds'' can borrow with an SBA 
guarantee from $225 million to $350 million
  The SBIC program guarantees loans to qualified investment funds, or 
SBICs. In turn, these SBICs invest in promising small businesses by 
combining the SBA loan with privately raised capital, often at a 2:1 
ratio. It is important to note that while these SBICs are licensed and 
regulated by the SBA, they are privately owned and operated.
  Since its inception, the SBIC Debenture program has been incredibly 
successful. SBICs have invested more than $70 billion in nearly 170,000 
small businesses. Recently, the program has experienced rapid growth. 
In 2013, SBA guaranteed loans to SBICs equaling $3.5 billion, a 70 
percent increase in financing dollars from three years ago and the 
highest amount of financings in the past decade.
  This success is largely attributed to Congressional action that 
raised the ceiling for maximum investments for the SBIC program each 
year from $3 billion to $4 billion. Senator Landrieu, Senator Risch, 
and I worked with a bipartisan coalition to increase this ceiling and 
ensure SBIC funds have access to sufficient capital to invest in 
promising small businesses.
  Nowhere is the success of this increase seen more than in Maryland. 
Since the start of fiscal year 2015, SBICs have already invested nearly 
$65 million in Maryland small businesses. Yet, this success could be 
enhanced even more if Congress increased the amount SBICs with a family 
of funds can borrow from the SBA.
  SBICs that run multiple funds at a time are known as ``families of 
funds.'' While many of our Nation's most successful and reliable SBICs 
have a family of funds, their success is being restricted by the 
current lending limit. Simply raising the limit from $225 million to 
$350 million would provide these proven fund managers the additional 
capital needed to invest in small businesses and stimulate local 
economies.
  Put simply, by increasing the ``family of funds'' lending limit to 
$350 million, proven investors can invest in more promising small 
businesses. The SBIC Act enhances the SBA's ability to support these 
successful investors as they finance small businesses that will 
continue to create jobs in this country.

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