[Congressional Record Volume 164, Number 41 (Thursday, March 8, 2018)]
[Senate]
[Pages S1580-S1581]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. HATCH (for himself and Mr. Wyden):
  S. 2526. A bill to amend the Internal Revenue Code of 1986 to 
encourage retirement savings, and for other purposes; to the Committee 
on Finance.
  Mr. WYDEN. Mr. President, Senator Hatch and I have introduced the 
Retirement Enhancement and Savings Act of 2018. This bill makes a 
number of improvements to our Nation's employer-provided retirement 
plans and is the result of several years of bipartisan work on the part 
of the Finance Committee. The Retirement Enhancement and Savings Act 
was unanimously reported out of the Finance Committee in the prior 
Congress, and I urge my colleagues to support this bill.
  The bill that Senator Hatch and I have introduced is identical to the 
bill reported by the Finance Committee except for updating effective 
dates, omitting provisions that already have been enacted into law, and 
several technical modifications to the provisions impacting the United 
States Tax Court and to the safe harbor for employers for annuity 
provider selection.
  The safe harbor for annuity provider selection is a critical change 
to current law that will encourage employers to offer annuities to 
employees in 401(k) and other defined contribution retirement plans. 
Many employers are reluctant to offer annuities in these types of plans 
because of uncertainty about their liability in the event that an 
insurer becomes insolvent and is unable to pay benefits under the 
annuity. This safe harbor provides certainty for employers who select 
insurers who are financially capable of meeting their commitments and 
are in good standing with State regulators. The technical modification 
to the safe harbor is a one-word change that clarifies that the safe 
harbor is solely for the selection of the insurer and the possibility 
that the insurer may not be able to make payments due under the 
contract and is not a safe harbor for the selection of the contract. As 
under existing law, the plan fiduciary remains required to prudently 
select the type of annuity that is best for participants and 
beneficiaries.
      By Mr. CARDIN (for himself, Mr. Risch, and Mr. Kennedy):
  S. 2527. A bill to amend the Small Business Investment Act of 1958 to 
increase the amount of leverage made available to small business 
investment companies; to the Committee on Small Business and 
Entrepreneurship.
  Mr. CARDIN. Mr. President, I rise today to introduce a common sense 
piece of legislation that will expand the ability of the Small Business 
Administration (SBA) to nurture innovative and high-growth small 
businesses in Maryland and across the country.
  Let me first say, I recently returned to the Senate Committee on 
Small Business & Entrepreneurship as the Ranking Member. I look forward 
to continuing the important work of helping America's 29 million small 
businesses--the job creating engine of the country--access the 
essential capital to grow, to earn their fair share of Federal 
contracts, and to take advantage of SBA's counseling and mentoring 
programs that help entrepreneurs market and manage their businesses.
  The Small Business Investment Opportunity Act is straightforward. It

[[Page S1581]]

modifies SBA's Small Business Investment Company (SBIC) program by 
increasing the amount of capital that SBICs with a single fund can 
invest in qualifying small businesses.
  The SBIC program stimulates investment in America's high-growth small 
businesses. SBICs are privately-owned and managed investment funds that 
use their own capital--plus funds borrowed with an SBA guaranty--to 
capitalize small businesses.
  Last year, SBICs made 36 investments totaling $61.3 million in 12 
innovative Maryland firms. Over the past five years, the program has 
channeled more than $21 billion of capital to 6,400 American small 
businesses across a variety of industries.
  The program operates at no expense to taxpayers. Instead, the cost of 
the program is covered by fees paid by SBICs and their portfolio 
companies.
  Consider this: since the program launched in 1958, SBIC has:
  Deployed more than $67 billion of capital;
  Made more than 166,000 investments in American small businesses; and
  Licensed more than 2,100 investment funds.
  Some of America's most iconic brands have received investment capital 
from SBICs, including Apple, Tesla, Whole Foods, Staples, Intel, FedEx 
and Costco, among others.
  Under current law, SBA can guarantee up to $150 million of an SBIC 
investment fund. Our legislation increases that cap to $175 million and 
unlocks additional capital for small businesses with high-growth 
potential. The cap has not been raised since 2009.
  Raising this cap would simply keep up with inflation and maximize the 
amount of capital SBICs can direct to innovative small businesses that 
hire our workers, support our communities, drive innovation and help 
our country maintain its competitive edge.
  This bill also builds upon a change that Senator Risch, Senator 
Shaheen and I passed in 2015 to increase the maximum amount of leverage 
to SBICs with more than one fund. As some of my colleagues will recall, 
those types of SBICs are known as ``Family of Funds.''
  As with the bill in 2015, the legislation we are introducing today is 
also bipartisan and bicameral. I am pleased the Small Business 
Investment Opportunity Act has the support of our Chairman, Senator 
Risch, as well as Senators Shaheen and Kennedy. An identical bill 
passed the House last year, and the legislation is endorsed by the 
Small Business Investor Alliance.
  Thank you, I yield the floor.

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