[Congressional Record (Bound Edition), Volume 147 (2001), Part 10]
[Senate]
[Page 13613]
[From the U.S. Government Publishing Office, www.gpo.gov]



        SMALL BUSINESS INVESTMENT COMPANY AMENDMENTS ACT OF 2001

  Mr. KERRY. Mr. President, I am pleased to join my colleague, Senator 
Bond, in introducing the Small Business Investment Company, SBIC, 
Amendments Act of 2001. I am a strong supporter of this program, and am 
mystified and frustrated by efforts to eliminate funding for and 
restrict the investment capacity of a program that does so much good 
for the economy.
  Last year, the Agency financed 4,600 venture capital deals, which 
invested $5.6 billion in our fastest-growing small businesses. In spite 
of this impressive track record, the President's budget, and the House 
appropriators, have eliminated funding for the SBIC participating 
securities program and reduced the program level for the debenture 
program, which requires no appropriations. Why eliminate funding and 
restrict activity for the SBIC programs when venture capital has all 
but dried up? As I have said so many times, the programs at SBA are a 
bargain. For very little, taxpayers leverage their money to help 
thousands of small businesses every year and fuel the economy.
  In the SBIC participating securities program last year, taxpayers 
spent $1.31 for every $100 leveraged for investment in our fastest 
growing companies--companies like Staples, Callaway Golf, Federal 
Express, and Apple computers.
  The main purpose of this Act is to adjust the fees charged to 
Participating Security SBICs from one percent to 1.28 percent. The 
change is necessary because the demand for the SBIC program is growing 
beyond what is possible to fund solely through appropriations.
  The National Association of Small Business Investment Companies, 
NASBIC, testified before both the Senate and House Committees on Small 
Business in favor of increasing the program level from $2 billion to 
$3.5 billion.
  This legislation raises fees just enough to make up the difference 
between appropriations of $26.2 million, which is level funding, and 
the $65.4 million that would be needed to provide a $3.5 billion 
program level. This approach is consistent with the Kerry/Bond 
amendment to the Budget Resolution that was agreed to in the Senate by 
voice vote in April, and retained in the final budget resolution.
  The other changes strengthen the oversight and authority of SBA to 
take action against bad actors and protect the integrity of the 
program.

                          ____________________