[Congressional Record Volume 169, Number 16 (Wednesday, January 25, 2023)]
[House]
[Pages H304-H307]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  INVESTING IN MAIN STREET ACT OF 2023

  Mr. WILLIAMS of Texas. Mr. Speaker, I move to suspend the rules and 
pass the bill (H.R. 400) to amend the Small Business Investment Act of 
1958 to increase the amount that may be invested in small business 
investment companies.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                                H.R. 400

       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 2023''.

     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 striking ``5 percent'' and 
     inserting ``15 percent''; and
       (2) in paragraph (2), by striking ``5 percent'' and 
     inserting ``15 percent''.

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


                             General Leave

  Mr. WILLIAMS of Texas. Mr. Speaker, I ask unanimous consent that all 
Members may have 5 legislative days to revise and extend their remarks 
and submit extraneous materials on this measure.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Texas?
  There was no objection.
  Mr. WILLIAMS of Texas. Mr. Speaker, I yield myself such time as I may 
consume.

[[Page H305]]

  Small businesses are the engines of our economy. Over half of the 
country's payroll is made from small businesses, and when we work to 
find solutions to help these entities, we are strengthening the 
economic foundation of our country.
  So before we start debating these bills, I thank our leadership team 
for recognizing the importance of small businesses and bringing these 
bills to the floor quickly so we can help build up Main Street America.
  Mr. Speaker, I rise in support of H.R. 400, better known as the 
Investing in Main Street Act.
  Last Congress, the Subcommittee on Capital Access held a hearing on 
the small business investment company program, otherwise known as the 
SBIC program. During this hearing, our members heard from witnesses 
about how this program attracts private equity investments to small 
businesses to hire more people and expand their operations.
  This is a self-sustaining program that supports our Nation's job 
creators without costing taxpayers any money. In order to expand on 
this success, H.R. 400 looks to increase the maximum allowable 
investments by SBICs from 5 percent to 15 percent of their excess 
capital to small businesses.
  This change will allow for greater amounts of private equity dollars 
to go toward small businesses. Additionally, this will align the SBIC 
program to other financial regulations coming out of the OCC and will 
help jumpstart growth of small businesses across this country.
  As we look for ways to continually improve on this program, this 
change will have an immediate impact for our jobs and our Nation's job 
creators.
  I thank my colleagues from California and New York for, once again, 
introducing this bipartisan solution to expand successful programs that 
empower the private sector to invest in small businesses.
  Mr. Speaker, I reserve the balance of my time.
  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. 400, 
the Investing in Main Street Act of 2023.
  The SBA's Small Business Investment Company program is a multi-
billion-dollar investment program designed to bridge the gap between a 
small business owner's need for capital and traditional sources of 
financing. It achieves this purpose by partnering private and public 
investments in early-stage startup businesses.
  It also gives America's small, high-growth companies an opportunity 
to fund and grow their innovative ideas and create jobs.
  The success of this program can be seen with companies like Apple, 
Intel, and FedEx, which all received early stage financing from the 
SBICs.
  In fiscal year 2021, the combined private capital and SBA-backed 
funds totaled $34 billion, which was the highest in program history, 
and helped support more than 126,000 jobs. The number of financings to 
women-owned, minority-owned, and veteran-owned small businesses 
increased by 36 percent.
  Yet, we can do more to ensure the program continues to meet demand.
  The Investing in Main Street Act, introduced by my colleagues, 
Representatives Chu and Garbarino, 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 change brings the Small Business Investment Act of 1958 in line 
with the Office of the Comptroller of the Currency's national bank 
charter percentage requirements. It will increase the investment 
capital available to SBICs and allow them to invest more in small 
businesses.
  I applaud Representatives Chu and Garbarino's continued work on this 
issue and this bill, and I ask all my colleagues to support this bill.
  Mr. Speaker, I reserve the balance of my time.
  Mr. WILLIAMS of Texas. Mr. Speaker, I yield such time as he may 
consume to the gentleman from New York (Mr. Garbarino), a person who 
loves this country, and who understands Main Street America and small 
businesses.
  Mr. GARBARINO. Mr. Speaker, I am pleased to rise today to share my 
support for H.R. 400, the Investing in Main Street Act of 2023, a bill 
which I am proud to co-lead with Congresswoman Judy Chu.
  I also thank the chairman and the ranking member for bringing this up 
today.
  We often talk about small businesses being the backbone of the U.S. 
economy. It is not just a talking point, but a statement of fact. Small 
businesses are major contributors to our Nation's overall prosperity; 
and in my district on Long Island, small businesses are what fuels 
local economic growth.
  As we face economic uncertainty due to inflation, labor shortages, 
and other ongoing challenges, we look to our small businesses to be 
leaders in the private sector and to help revitalize our communities.
  For over 60 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 need 
access to additional capital.
  The increase from 5 percent to 15 percent stipulated in this bill is 
a necessary reform that will help small businesses get back on their 
feet.
  I thank my colleague, Congresswoman Chu, for her leadership on this 
issue, and I urge my colleagues to vote ``yes'' on this bill.
  Ms. VELAZQUEZ. Mr. Speaker, I yield 2 minutes to the gentlewoman from 
California (Ms. Chu).
  Ms. CHU. Mr. Speaker, I rise in strong support of my bill, H.R. 400, 
the Investing in Main Street Act, which would make commonsense changes 
to the small business investing laws to maximize the amount that banks 
may invest in SBA-certified small business investment companies or 
SBICs.
  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.
  The Investing in Main Street Act simply fixes this outdated 
inconsistency to allow banks to invest the full 15 percent in SBICs. 
Raising this cap will dramatically increase the amount of investment 
capital available to our country's small businesses for whom even small 
investments can mean so much.
  Already, SBICs have helped companies like Costco, Apple, and Intel 
get off the ground back when they were just starting out; and SBICs 
fill a gap in the investment ecosystem and level the playing field for 
the smallest businesses which often face the highest barriers to 
securing investments from traditional private investors.
  The nearly 300 certified SBICs in operation today have invested or 
committed $38 billion in small businesses nationwide; and last year 
alone, SBICs provided $7.9 billion in funding to over 1,200 small 
businesses and startups.
  By raising the investment cap from 5 percent to 15 percent, we could 
potentially triple those numbers in the years to come. The growth will 
be especially important as America's entrepreneurship rates continue to 
soar as we emerge from the COVID-19 pandemic.
  I thank Representative Garbarino for his partnership on this 
legislation, and Chairman Williams and Ranking Member Velazquez for 
their strong support. I urge a ``yes'' vote on this bill.
  Mr. WILLIAMS of Texas. Mr. Speaker, I have no further speakers, and I 
am prepared to close.
  Mr. Speaker, I reserve the balance of my time.

                              {time}  1345

  Ms. VELAZQUEZ. Mr. Speaker, I yield 2 minutes to the gentlewoman from 
Texas (Ms. Jackson Lee).
  Ms. JACKSON LEE. Mr. Speaker, I thank the ranking member of the Small 
Business Committee for astute work on issues dealing with small 
businesses; Mr. Williams, a colleague from Texas; and the bipartisan 
sponsors of this legislation.
  I have always said that small businesses are the backbone of the 
economic engine of America, so I rise in support of H.R. 400, the 
Investing in Main Street Act of 2023, for the wiseness of providing 
more investment in small businesses.
  As a strong supporter of small businesses, I believe that this bill 
will improve the livelihood of many small

[[Page H306]]

businesses that have continuously been impacted by the COVID-19 
pandemic. The bill is designed to release more capital investment into 
small businesses in America. If my colleagues have interacted with the 
small business community, that is one of the number one issues that 
they raise consistently.
  The bill would allow certain banks and savings associations to invest 
more into small business investment companies by increasing the 
statutory cap from 5 percent to 15 percent--I can't even imagine the 
number 5 percent--and the growing amount of small businesses and the 
ones that really stayed the course in desperate times, which was COVID-
19.
  According to the U.S. Bureau of Labor Statistics, 2020 had the 
highest total number of applications for new businesses by far compared 
to all other years. From 2019 to 2021, there was a 20 percent increase 
in the number of small businesses. The Kauffman Foundation says that 
the highest amount was among Blacks, Latinos, and immigrants.
  People know that small businesses allow them to create jobs in their 
own neighborhoods and to build future conglomerates, but obviously, 
small businesses reported negative impacts due to COVID.
  It is important for this bill to become law immediately. Pass it in 
the Senate and ensure that we have the opportunity to keep our small 
businesses from closing. When small businesses have ideas, we need to 
be able to give them the investment to focus on.
  The Biden-Harris administration has laid the foundation and has 
helped create the conditions for businesses and job creation. We have 
had increasing job creation every month, but we do know that cities 
like New Orleans and Honolulu have seen the highest rate of small 
business closures. Other cities are right behind.
  The fact that we can have a Small Business Administration that 
reforms and works with the Paycheck Protection Program, to improve 
that, if we had another circumstance like that that held up some of our 
small businesses, this investment is going to be a lifeline.
  I am delighted to rise to support this legislation because, again, as 
I opened my remarks, small businesses are the economic engine of 
America and give women, minorities, and others the opportunity to build 
an economic engine.
  Mr. Speaker, I rise in support of H.R. 400, the Investing in Main 
Street Act of 2023, to amend the Small Business Investment Act of 1958 
to increase the amount that may be invested in small business 
investment companies.
  As a strong supporter of small businesses, I believe that this bill 
will improve the livelihood of many small businesses that have 
continuously been impacted by the COVID-19 pandemic.
  This bill is designed to release more capital investment into small 
businesses in America.
  The bill would allow certain banks and savings associations to invest 
more into small business investment companies by increasing the 
statutory cap from 5 percent to 15 percent.
  During the COVID-19 pandemic, the United States saw a significant 
rise in small businesses.
  According to the U.S. Bureau of Labor Statistics, 2020 had the 
highest total number of applications for new businesses by far compared 
to all years that data was available.
  From 2019 to 2021, there was a 20 percent increase in the number of 
small businesses created. That is more than double the average growth 
rate year to year.
  According to the Kauffman Foundation, the increase in the rate of 
entrepreneurship during the pandemic was highest amongst Blacks, 
Latinos, and immigrants.
  Even though there has been a significant rise in the number of small 
businesses during the pandemic, many businesses report negative impacts 
due to COVID.
  In April 2020, the U.S. Census Bureau launched the Small Business 
Pulse Survey to produce data in real-time on the challenges small 
businesses were facing due to the pandemic.
  When the first survey was collected in April of 2020, 90 percent of 
businesses surveyed stated that the pandemic had a negative effect on 
business.
  When the last survey was collected in April of 2022, 70 percent of 
businesses surveyed stated that the pandemic had a negative effect on 
business.
  Almost three years into the pandemic, small businesses are still 
struggling with getting back on their feet.
  Cities such as New Orleans and Honolulu had some of the highest rates 
of small business closures in the country because their economies are 
largely built around serving visitors.
  In large cities like San Francisco and Austin, the food industry was 
largely impacted because those who would typically eat out on their 
lunch break were now working from home.
  The time for small business recovery is now.
  The Biden-Harris administration has laid the foundation and has 
helped create the conditions for business and job creation.
  With the evolution of almost 5.4 million small businesses in 2021, we 
must work to maintain and support these growing businesses.
  The Biden-Harris administration partnered with the Small Business 
Administration (SBA) to reform the Paycheck Protection Program (PPP). 
The policy changes targeted small business and companies that were left 
out of previous relief efforts.
  The data shows that these PPP policy changes provided more support in 
minority communities than the rounds under the previous administration.
  The Small Business Relief under the American Rescue Plan included 
targeted grant relief and tax credits for small businesses hit by the 
pandemic.
  The Small Business Relief produced immediate relief to more than 
600,000 of the hardest hit small businesses.
  The Biden-Harris administration was able to provide more than 6 
million small businesses with $450 billion in emergency relief via the 
Small Business Administration.
  Investing more in our small businesses has had a profound impact on 
the job market in the United States.
  In the first three quarters of 2021, small businesses with 50 
employees or less created almost 2 million jobs in the United States, 
the fastest start to small business job growth in any year on record.
  Investing in main street should continue to be a priority for 
Congress.
  Through this bipartisan bill, certain financial institutions would 
have the ability to invest more into small business investment 
companies by raising the statutory cap.
  I urge my colleagues to join me and support this important 
legislation that will expand access to capital, increase the number of 
small businesses, and create jobs at home.
  We must show the American public that improving the economy is a 
priority in Congress. This bill is a good first step at doing so.
  Mr. WILLIAMS of Texas. Mr. Speaker, I reserve the balance of my time.
  Ms. VELAZQUEZ. Mr. Speaker, I yield myself the balance of my time.
  Mr. Speaker, 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 capital to leading-edge, 
high-growth companies. Without it, some of the Nation's most successful 
corporations would not be the companies they are today.
  H.R. 400 raises the investment cap for banks and Federal savings 
associations from 5 percent to 15 percent. This will lead to 
significant small business investment by SBICs, which will result in 
economic growth in our local communities and job creation.
  I applaud Ms. Chu and Mr. Garbarino for their bipartisan work on this 
bill.
  Mr. Speaker, I encourage all of my colleagues to vote ``yes,'' and I 
yield back the balance of my time.
  Mr. WILLIAMS of Texas. Mr. Speaker, I yield myself the balance of my 
time.
  Mr. Speaker, 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. 400, and I yield 
back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Texas (Mr. Williams) that the House suspend the rules 
and pass the bill, H.R. 400.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mr. WILLIAMS of Texas. 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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