[Congressional Record Volume 171, Number 36 (Monday, February 24, 2025)]
[House]
[Pages H743-H745]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
INVESTING IN MAIN STREET ACT OF 2025
Mr. WILLIAMS of Texas. Mr. Speaker, I move to suspend the rules and
pass the bill (H.R. 754) 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. 754
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 2025''.
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 in which to revise and extend their
remarks and include extraneous material on the bill.
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 H744]]
Mr. Speaker, I rise today in support of H.R. 754, the Investing in
Main Street Act of 2025, led by my colleagues, Representatives Chu,
Finstad, McIver, and Garbarino.
As chairman of the Small Business Committee, one of my top priorities
is expanding access to capital for small businesses. The Small Business
Investment Company, or the SBIC, program plays a crucial role in this
effort by attracting private equity investments to help small
businesses grow, create jobs, and strengthen our economy.
SBIC has been an invaluable tool for investing in small businesses
that build critical technologies and support American national
security.
H.R. 754 builds on this success by increasing the maximum allowable
investments by SBICs from 5 percent to 15 percent of their excess
capital. This change will allow more significant private equity dollars
to go toward small businesses.
As we continue working to improve programs that support small
businesses, this change will immediately impact our Nation's job
creators. I thank my colleague from California for 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. 754,
the Investing in Main Street Act of 2025.
SBA's Small Business Investment Company program is a multibillion-
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 receive early-stage financing from SBICs.
Today, there are 319 SBIC-licensed funds participating in an array of
private investment and private credit strategies.
In 2023 alone, SBIC-licensed funds financed approximately $7.2
billion to 1,142 small businesses and startups across the country,
creating or sustaining more than 130,000 jobs. Importantly, financing
provided by SBIC-licensed funds to women-owned, minority-owned, and
veteran-owned small businesses totaled almost $670 million in 2023, a
25.7 percent increase from 2022.
Yet, we must do more to ensure the program continues to meet demand.
The Investing in Main Street Act of 2025 introduced by my colleagues,
Representatives Chu, Finstad, and McIver, 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 will correct a discrepancy caused by a historical
drafting oversight and bring the Small Business Investment Act of 1958
in line with the Office of the Comptroller of the Currency's national
bank charter percentage requirements.
No bank laws or regulations will be changed or affected by this bill.
It will increase investment capital available to SBICs and allow them
to invest more in small businesses.
Mr. Speaker, I applaud Ms. Chu, Mr. Finstad, and Mrs. McIver's work
on this issue and this bill. I ask my colleagues to support it, and 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 the great State of Minnesota (Mr.
Finstad).
Mr. FINSTAD. Mr. Speaker, I thank Chairman Williams for yielding.
Mr. Speaker, I rise today in support of H.R. 754, the Investing in
Main Street Act of 2025, legislation which I am honored to co-lead with
my colleague from California.
The Investing in Main Street Act of 2025 makes critical improvements
to the Small Business Investment Act of 1958, allowing Small Business
Investment Companies, or SBICs, to invest more resources in Main Street
businesses across southern Minnesota and across the country.
From Winona to Worthington, small business owners across the district
I have the honor to represent rely on early access to capital to start
and grow. This legislation will spur further investment in our business
community and assist businessowners in accessing the capital needed to
pursue the American Dream of owning and operating a small business.
Mr. Speaker, I thank Representative Chu for partnering with me on
this important legislation, and I urge my colleagues to vote in support
of the Investing in Main Street Act of 2025.
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. 754,
the Investing in Main Street Act of 2025, which would spur innovation,
entrepreneurship, and growth in our small businesses nationwide.
Currently, 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 of 2025 simply amends this outdated
law to align these caps by allowing banks to invest a full 15 percent
in SBICs. Raising this cap would 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 marquee American companies like Costco,
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 for the smallest businesses which often face the highest barriers
to securing investments from traditional private investors.
The nearly 319 certified SBICs in operation today have invested or
committed over $38 billion in small businesses nationwide. In 2023
alone, SBICs provided $7.2 billion in funding to 1,142 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 and drive
revitalization in communities across the country.
I thank Representatives Finstad, McIver, and Garbarino for their
partnership in this legislation and Chairman Williams and Ranking
Member Velazquez for their strong support.
Mr. Speaker, I urge my colleagues to vote ``yes'' on this bill and
for the Senate to expeditiously take it up so we can unlock more of the
potential of American entrepreneurs.
Mr. WILLIAMS of Texas. Mr. Speaker, I reserve the balance of my time.
Ms. VELAZQUEZ. Mr. Speaker, I yield 2 minutes to the gentlewoman from
New Jersey (Mrs. McIver).
Mrs. McIVER. Mr. Speaker, small businesses are the backbone of our
local economy. COVID-19 shuttered the doors of many beloved local
businesses, and many more are still continuing on a path of financial
recovery. Now, with sky-high prices and rising inflation, small
businesses need our support more than ever.
Today, I join Representative Chu to reintroduce the Investing in Main
Street Act of 2025 to increase access to capital for small businesses
who need it. This bill amends the Small Business Investment Act of 1958
by increasing the amount that certain banks and savings associations
may invest in small business investment companies from 5 percent to 15
percent.
As the ranking member on the Small Business Subcommittee on Economic
Growth, Tax, and Capital Access, I know firsthand the challenges
businessowners face. Small businesses contribute so much to our
communities. In fact, they make up over 40 percent of our Nation's GDP,
and it is time we give back to our hardworking businessowners.
These additional investments will create more jobs, allow existing
businesses to expand and thrive, and reduce barriers to entry for small
businesses looking to get off the ground. I am grateful to
Representative Chu for leading the charge on this essential improvement
to SBIC funding, and I am proud to co-lead this crucial bill.
Mr. Speaker, I thank Chairman Williams and my ranking member,
Representative Velazquez. I urge my colleagues to support this bill.
[[Page H745]]
Mr. WILLIAMS of Texas. Mr. Speaker, I reserve the balance of my time.
Ms. VELAZQUEZ. Mr. Speaker, I applaud Representatives Chu, Finstad,
and McIver for their bipartisan work on this bill. I encourage all my
colleagues to vote ``yes,'' and I yield back the balance of my time.
Mr. WILLIAMS of Texas. Mr. Speaker, I urge my colleagues to support
this commonsense legislation, 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. 754.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill was passed.
A motion to reconsider was laid on the table.
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