[Congressional Record Volume 165, Number 7 (Monday, January 14, 2019)]
[House]
[Pages H522-H524]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  INVESTING IN MAIN STREET ACT OF 2019

  Ms. VELAZQUEZ. 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.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                                H.R. 116

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Investing in Main Street Act 
     of 2019''.

     SEC. 2. INVESTMENT IN SMALL BUSINESS INVESTMENT COMPANIES.

       Section 302(b) of the Small Business Investment Act of 1958 
     (15 U.S.C. 682(b)) is amended--
       (1) in paragraph (1), by inserting before the period the 
     following: ``or, subject to the approval of the appropriate 
     Federal banking agency, 15 percent of such capital and 
     surplus'';
       (2) in paragraph (2), by inserting before the period the 
     following: ``or, subject to the approval of the appropriate 
     Federal banking agency, 15 percent of such capital and 
     surplus''; and
       (3) by adding at the end the following:
       ``(3) Appropriate federal banking agency defined.--For 
     purposes of this subsection, the term `appropriate Federal 
     banking agency' has the meaning given that term under section 
     3 of the Federal Deposit Insurance Act.''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from 
New York (Ms. Velazquez) and the gentleman from Ohio (Mr. Chabot) each 
will control 20 minutes.
  The Chair recognizes the gentlewoman from New York.


                             General Leave

  Ms. VELAZQUEZ. 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.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from New York?
  There was no objection.
  Ms. VELAZQUEZ. 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

[[Page H523]]

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

[[Page H524]]

  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.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentlewoman from New York (Ms. Velazquez) that the House suspend the 
rules and pass the bill, H.R. 116.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Ms. VELAZQUEZ. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further 
proceedings on this motion will be postponed.

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