Congressional Record, Volume 167 Issue 192 (Tuesday, November 2, 2021)

[Congressional Record Volume 167, Number 192 (Tuesday, November 2, 2021)]
[House]
[Pages H6087-H6088]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

{time} 1245
INVESTING IN MAIN STREET ACT OF 2021

Ms. VELAZQUEZ. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 4256) 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, as
amended.
The Clerk read the title of the bill.
The text of the bill is as follows:

H.R. 4256

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 2021''.

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.''.

SEC. 3. DETERMINATION OF BUDGETARY EFFECTS.

The budgetary effects of this Act, for the purpose of
complying with the Statutory Pay-As-You-Go Act of 2010, shall
be determined by reference to the latest statement titled
``Budgetary Effects of PAYGO Legislation'' for this Act,
submitted for printing in the Congressional Record by the
Chairman of the House Budget Committee, provided that such
statement has been submitted prior to the vote on passage.

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

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 to include any 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 the bill before us today, H.R.
4256, the Investing in Main Street Act of 2021.
Since 1958, the Small Business Investment Company program, also known
as the 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 2020, the SBIC program provided almost
$5 billion in financing for 1,063 small businesses and helped sustain
almost 92,000 jobs.
This program gives America's small, high-growth companies an
opportunity to fund and grow their innovative ideas and create jobs.
Just look at companies like Apple, Tesla, or FedEx. Each has achieved
what we all hope for every small business, extraordinary growth and
success. And each of them received early-stage financing from SBICs.
One of the strengths of this program is the hands-off approach SBA
takes with respect to individual investments, giving fund managers the
flexibility to invest in almost any business or sector they choose as
it fits their fund's investment strategy.
This freedom, combined with decades of sound investment strategy, has
led to its success. The SBIC program has helped increase the flow of
patient capital to small, high-growth companies, but we can do more to
ensure the program continues to meet demand.
Ms. Chu and Mr. Garbarino's bill will strengthen and grow the SBIC
program by allowing banks and Federal savings associations to invest up
to 15 percent of their capital and surplus into SBICs. This increase in
capital, which comes at no cost to the taxpayer, offers entrepreneurs
the financing necessary to grow their businesses and continue to
innovate.
I applaud Ms. Chu and Mr. Garbarino for identifying this issue and
finding a sensible solution. I ask all of my colleagues to support this
bill, and I reserve the balance of my time.
Mr. LUETKEMEYER. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I rise in support of H.R. 4256, the Investing in Main
Street Act, as amended.
Just last week, the Subcommittee on Economic Growth, Tax and Capital
Access held a hearing on the Small Business Investment Company program,
also known as the SBIC program. This program, which increases the
amount of private equity into small businesses, has successfully
assisted thousands of small businesses.
The SBIC program is currently running on zero cost to the American
taxpayer due to the fees built into the program.
To enhance the program, H.R. 4256 increases the amount of capital and
surplus that can be invested into an SBIC from a financial institution
from 5 percent to 15 percent, which is currently the percentage
requirement of the Office of the Comptroller of the Currency.
This important change will not only bring parity between the SBA and
Federal financial rules, but it can also jump-start the program for our
Nation's smallest firms.
I would like to thank the chair for advancing this bill, and Ms. Chu
from California and Mr. Garbarino from New York for working in a
bipartisan manner to ensure this bill reached the House floor.
I encourage all of my colleagues to support H.R. 4256, which was
unanimously reported out of our committee and has been passed on the
House floor in recent congressional sessions, as well.

[[Page H6088]]

Mr. Speaker, I reserve the balance of my time.
Ms. VELAZQUEZ. Mr. Speaker, I yield 3 minutes to the gentlewoman from
California (Ms. Chu), a sponsor of the bill.
Ms. CHU. Mr. Speaker, I rise in strong support of H.R. 4256, the
Investing in Main Street Act, which would make a simple, commonsense
change to small business investing laws to ensure that SBA-certified
Small Business Investment Companies, or SBICs, can take full advantage
of capital available from banks and Federal savings associations.
Even though banking rules allow financial institutions to invest up
to 15 percent of their capital and surplus in SBICs, small business
investing rules cap these same investments far lower, at just 5 percent
of capital and surplus. The Investing in Main Street Act amends this
outdated law to ensure that banks can invest the full 15 percent in
SBICs, a simple change that will dramatically increase the amount of
investment capital available to our country's small businesses.
By raising this cap, this legislation will deliver more investments
and more financing to our small businesses for whom even small
investments can mean so much. Already, SBICs have helped companies like
Tesla, Apple, and Intel get off the ground back when they were just
starting out.
SBICs fill a gap in the investment ecosystem and level the playing
field by providing equity investments and financing opportunities to
the smallest businesses which face the highest barriers to secure
investments from traditional, private investors.
The nearly 300 certified SBICs in operation today have invested or
committed $32 billion in small businesses nationwide. Last year, in my
State of California alone, SBICs made nearly 300 financings, totaling
over $670 million. By raising the investment cap from 5 to 15 percent,
we could potentially triple those investments in the years to come.
That growth will be so important as our country continues to recover
and rebound from the COVID pandemic.

America's small businesses have endured one of the most challenging
periods in our country's history, and now is the time to help them
rebuild and grow.
I want to thank Representative Garbarino for his partnership on this
legislation, and Chairwoman Velazquez and Ranking Member Luetkemeyer
for their strong support. I urge a ``yes'' vote on this bill.
Mr. LUETKEMEYER. Mr. Speaker, I yield such time as he may consume to
the gentleman from New York (Mr. Garbarino).
Mr. GARBARINO. Mr. Speaker, I thank Chairwoman Velazquez and Ranking
Member Luetkemeyer for giving me the opportunity to support H.R. 4256,
the Investing in Main Street Act of 2021.
The members of the House Small Business Committee, both Republican
and Democrat, often talk about small businesses being the backbone of
the U.S. economy. This is not just a talking point but a simple
statement of fact. Small businesses are major contributors to our
Nation's success and prosperity. As we face economic uncertainty due to
the pandemic, we look to our small businesses to be leaders in the
private sector and to help revitalize our communities.
For 63 years, the SBIC program has injected capital into small
businesses by allowing financial institutions or Federal savings
associations to invest in SBICs up to 5 percent. But times change,
programs need updating, and now, more than ever, small businesses in
the SBIC program need access to additional capital. The increase from 5
percent to 15 percent investment stipulated in this bill is a necessary
reform that will help small businesses get back on their feet.
Mr. Speaker, I want to thank my colleague Congresswoman Chu for her
leadership on this issue, and I urge my colleagues to support this
bill.
Ms. VELAZQUEZ. Mr. Speaker, I have no further speakers, and I am
prepared to close. I reserve the balance of my time.
Mr. LUETKEMEYER. Mr. Speaker, I have no further speakers, as well, so
I will close. The SBIC program has delivered for small businesses for
many years. It is time we update the program to match other Federal
Rules and ensure the program continues to serve our communities in the
future. This is a commonsense step to increase the amount of investment
that an SBIC can receive.
Mr. Speaker, I urge my colleagues to support H.R. 4256, and I yield
back the balance of my time.
Ms. VELAZQUEZ. Mr. Speaker, I yield myself the balance of my time.
As the small business economy recovers from the COVID-19 pandemic,
entrepreneurs will need as many options for affordable capital as
possible. The SBIC program fills the gap between the availability of
venture and private equity capital and the needs of small businesses in
startup and growth situations.
For decades, this program has channeled patient capital to leading-
edge, high-growth companies. Some of our Nation's most successful
corporations received early-stage funding from SBICs. Without it, they
would not be the companies they are today. The bill we are considering
today will lead to additional investment by SBICs, which will, in turn,
lead to strong economic growth in our local communities.
The Investing in Main Street Act has bipartisan support, and it is
endorsed by the Small Business Investor Alliance.
I want to applaud Ms. Chu and Mr. Garbarino for their bipartisan work
on this SBIC program. I urge my colleagues to vote ``yes,'' and I yield
back the balance of my time.
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. 4256, as amended.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds
being in the affirmative, the ayes have it.
Mrs. BOEBERT. Mr. Speaker, on that I demand the yeas and nays.
The SPEAKER pro tempore. Pursuant to section 3(s) of House Resolution
8, the yeas and nays are ordered.
Pursuant to clause 8 of rule XX, further proceedings on this motion
are postponed.

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