[Congressional Record Volume 169, Number 18 (Friday, January 27, 2023)]
[Extensions of Remarks]
[Pages E65-E66]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  INVESTING IN MAIN STREET ACT OF 2023

                                 ______
                                 

                               speech of

                        HON. SHEILA JACKSON LEE

                                of texas

                    in the house of representatives

                      Wednesday, January 25, 2023

  Ms. JACKSON LEE. Mr. Speaker, I rise in support of H.R. 400, the 
Investing in Main

[[Page E66]]

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 3 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 Franciso 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 3 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.

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