[Congressional Record (Bound Edition), Volume 163 (2017), Part 8]
[House]
[Pages 11440-11441]
[From the U.S. Government Publishing Office, www.gpo.gov]




           SMALL BUSINESS INVESTMENT OPPORTUNITY ACT OF 2017

  Mr. CHABOT. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 2333) to amend the Small Business Investment Act of 1958 to 
increase the amount of leverage made available to small business 
investment companies, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 2333

       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 ``Small Business Investment 
     Opportunity Act of 2017''.

     SEC. 2. INDIVIDUAL SBIC LEVERAGE LIMIT INCREASE.

       Section 303(b)(2)(A)(ii) of the Small Business Investment 
     Act of 1958 (15 U.S.C. 683(b)(2)(A)(ii)) is amended by 
     striking ``$150,000,000'' and inserting ``$175,000,000''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Ohio (Mr. Chabot) and the gentlewoman from California (Ms. Judy Chu) 
each will control 20 minutes.
  The Chair recognizes the gentleman from Ohio.
  Mr. CHABOT. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, as chairman of the House Small Business Committee, a day 
does not go by without me hearing from our Nation's job creators. From 
inspiring accounts that are driven by their work ethic to stories of 
sacrifice all in the name of growing their company, the Nation's small 
businesses are the true lifeblood of the American economy.

                              {time}  1615

  With over 29 million small businesses operating in the United States, 
they are responsible for two out of every three new jobs created in 
this country. However, their full potential is being held back by 
heavy-handed regulations and uncertainty. Unfortunately, their 
inability to access capital continues to prevent job creation and 
expansion.
  As a way to increase access to capital, the Small Business 
Administration jump-starts and enhances the flow of venture and private 
equity capital through the Small Business Investment Company program, 
also known as the SBIC program.
  Created in the 1958 Small Business Investment Act, the program 
utilizes a privately owned and SBA licensed model to increase access to 
capital. With over 300 SBICs operating in the country and more than $24 
billion of capital under management, the program in fiscal year 2015 
invested more than $5.4 billion in approximately 1,000 small 
businesses.
  In 2015, I introduced a SBIC bill that focused on increasing the 
family of funds limit.
  Similar to my 2015 legislation that was signed into law, the bill we 
have before us today concentrates on the individual leverage limit. 
Currently set at $150 million, the individual limit determines how much 
capital can be deployed by a SBIC that has only one fund under 
management. To better utilize this program and allow an increase in 
capital to small businesses, H.R. 2333--the bill that we are 
considering here this afternoon--increases the individual leverage 
limit to $175 million.
  I want to thank the gentleman from California (Mr. Knight), the 
chairman of our Subcommittee on Contracting and Workforce, for his 
leadership on this issue.
  With access to capital being such a critical need for small business 
expansion and job creation, an increase in the individual leverage 
limit could deliver the needed capital that the next great American 
company is searching for.
  This bill has broad bipartisan support and was favorably passed out 
of committee unanimously. I urge my colleagues to vote ``yes'' on H.R. 
2333.

[[Page 11441]]

  Mr. Speaker, I thank Ms. Judy Chu, who is here this afternoon, I 
believe, on behalf of Ms. Velazquez, who is the ranking member. We have 
a very strong bipartisan working committee. It is one of those in 
Congress that I think can be a model for other committees in how the 
two parties can actually work together and push forward with policies 
that are good for the country overall. We are not a very partisan 
committee. We work together. And I want to thank both Ms. Velazquez and 
Ms. Judy Chu for their participation in that bipartisanship.
  Mr. Speaker, I reserve the balance of my time.
  Ms. JUDY CHU of California. Mr. Speaker, I yield myself such time as 
I may consume.
  To date, small business investment companies have assisted thousands 
of high-growth businesses, providing over $100 billion in capital. The 
key to the program's success is leveraging Federal funds to expand the 
amount of private capital invested in promising small firms.
  The Small Business Administration provides funding to qualified SBICs 
with expertise in certain sectors of the economy. SBICs then use their 
own funds and leverage from SBA to invest in small businesses. Their 
actions have facilitated over 3 million jobs total and nearly $6 
billion per year of investment in domestic small employers.
  Yet this very success has pushed many SBIC licensees against the 
leverage caps, in turn reducing the flow of capital to worthy small 
businesses. Addressing the cap should be a priority to stabilize the 
financial landscape. Failure to do so leaves employers without capital 
to create jobs and expand our economy.
  In recent years, Congress has raised the leverage limits for SBICs to 
maximize the impact for family of funds licensees, but neglected to 
assist SBICs that manage just one company. That leverage cap remains at 
$150 million.
  H.R. 2333, the Small Business Investment Opportunity Act, would 
increase the cap to $175 million for a SBIC that manages just one 
company. This change will enhance the flow of capital to small 
businesses.
  I am happy to be an original cosponsor of this legislation, and I 
urge my colleagues to vote for this bill.
  Mr. Speaker, I would also like to add my appreciation to Chairman 
Chabot for his support in the process. I commend his leadership and 
Ranking Member Velazquez for their willingness to work in a bipartisan 
manner. I am pleased to serve on a committee that takes their 
responsibility seriously to help our Nation's small businesses prosper.
  Mr. Speaker, I reserve the balance of my time.
  Mr. CHABOT. Mr. Speaker, I yield such time as he may consume to the 
gentleman from Kansas (Mr. Marshall).
  Mr. MARSHALL. Mr. Speaker, I rise today in support of H.R. 2333, the 
Small Business Investment Opportunity Act of 2017.
  Constantly, we hear that access to capital is a major hurdle for 
small businesses. Despite an improving economy, small business lending 
has plateaued since the Great Recession.
  The Small Business Investment Opportunity Act aims to improve access 
to capital by increasing the amount a small business investment company 
can provide to small businesses.
  In Kansas, communities from Hutchinson to Shawnee, Newton to Parsons, 
have benefited from small business investment company programs, with 
more than $307 million in investments to over 110 small businesses 
across the State.
  Small businesses are the Nation's job creators, and providing this 
sort of access to capital will spur job creation and growth.
  Mr. Speaker, I recently finished my 39th townhall, and I dare say 
that at every townhall somebody asked me: Why can't Congress do 
anything in a bipartisan fashion?
  Mr. Speaker, this is an example of both parties working together for 
bipartisan solutions to grow this economy.
  Mr. Speaker, I encourage my colleagues to support this measure.
  Ms. JUDY CHU of California. Mr. Speaker, I continue to reserve the 
balance of my time.
  Mr. CHABOT. Mr. Speaker, I yield such time as he may consume to the 
gentleman from South Carolina (Mr. Norman), the newest member of the 
Small Business Committee.
  Mr. NORMAN. Mr. Speaker, I rise in strong support of H.R. 2333, the 
Small Business Investment Opportunity Act of 2017.
  As a businessman, I am keenly aware of how vital small businesses are 
to keeping our Nation's economy moving forward.
  Small businesses alone employ nearly half of America's private sector 
workforce. However, the dreams of many small business owners in South 
Carolina can't be fully realized because of the serious obstacle of 
accessing capital. This burden prevents the creation of more jobs and 
better opportunities for the hardworking American people.
  H.R. 2333 will allow the SBIC program, offered by the SBA to help 
tackle lending roadblocks, to be utilized to its full potential by 
increasing the individual leverage limit from $150 million to $175 
million. With this legislation, small businesses will have a greater 
chance to grow and help spur our economy.
  Mr. Speaker, I urge my colleagues to join me in support of H.R. 2333 
and for all of the small businesses nationwide.
  Ms. JUDY CHU of California. Mr. Speaker, expanding access to capital 
for small businesses has been a top priority for both sides of the 
aisle.
  The SBIC program fills the gap in the capital markets for businesses 
that have outgrown SBA's flagship 7(a) loan guarantee program, but 
remain too small or risky for the private equity industry.
  H.R. 2333 will help boost this program's success by changing how much 
leverage a SBIC can obtain from SBA.
  Specifically, this legislation is narrowly tailored to increase the 
leverage limit exclusively for SBICs that manage just one company. 
Increasing the capital will expand the flow of much-needed capital to 
small businesses.
  Mr. Speaker, I urge my colleagues to support this bill, and I yield 
back the balance of my time.
  Mr. CHABOT. Mr. Speaker, I want to, again, commend the gentleman from 
California (Mr. Knight) for his leadership on this particular 
legislation. He is the subcommittee chairman of the Contracting and 
Workforce Subcommittee.
  Mr. Speaker, in closing, let me reiterate the importance of this 
bill, which aims to increase access to capital for small businesses. It 
simply increases the SBIC's individual leverage limit from $150 million 
to $175 million.
  This legislation really is common sense. And, as I mentioned before, 
it is bipartisan. I, again, want to thank the gentlewoman from 
California (Ms. Judy Chu) for her bipartisan leadership on this as 
well.
  It will enhance the ability of small businesses to gain the needed 
money to expand and create jobs in our communities.
  Mr. Speaker, I urge my colleagues to vote ``yes'' on H.R. 2333, and I 
yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Ohio (Mr. Chabot) that the House suspend the rules and 
pass the bill, H.R. 2333, as amended.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

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