[Congressional Record (Bound Edition), Volume 163 (2017), Part 8]
[House]
[Pages 11443-11445]
[From the U.S. Government Publishing Office, www.gpo.gov]




                  INVESTING IN MAIN STREET ACT OF 2017

  Mr. CHABOT. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 2364) to amend the Small Business Investment Act of 1958 to 
increase the amount that certain banks and savings associations may 
invest in small business investment companies, subject to the approval 
of the appropriate Federal banking agency, and for other purposes.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 2364

       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 2017''.

[[Page 11444]]



     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 inserting before the period the 
     following: ``or, subject to the approval of the appropriate 
     Federal banking agency, 15 percent of such capital and 
     surplus'';
       (2) in paragraph (2), by inserting before the period the 
     following: ``or, subject to the approval of the appropriate 
     Federal banking agency, 15 percent of such capital and 
     surplus''; and
       (3) by adding at the end the following:
       ``(3) Appropriate federal banking agency defined.--For 
     purposes of this subsection, the term `appropriate Federal 
     banking agency' has the meaning given that term under section 
     3 of the Federal Deposit Insurance Act.''.

  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.


                             General Leave

  Mr. CHABOT. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days to revise and extend their remarks and include 
extraneous material on the bill under consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Ohio?
  There was no objection.
  Mr. CHABOT. Mr. Speaker, I yield myself such time as I may consume.
  As members of the Small Business Committee, we hear day in and day 
out how access to capital continues to challenge job creation and job 
growth. We must continue to work in a bipartisan fashion to create an 
environment for small businesses to flourish and grow.
  One resource available to small employers is the Small Business 
Investment Company program, or the SBIC program, which currently runs 
on a zero cost subsidy to the American taxpayer.
  The program enhances access to capital for small business throughout 
the Nation by utilizing a private sector-owned and SBA-licensed formula 
to increase equity capital.
  Within the SBIC program, banks and Federal savings associations are 
limited to the amount of capital or surplus they can invest in an SBIC. 
Under current statute, the limit prevents no more than a 5 percent 
investment.
  The legislation we have before us today, H.R. 2364, the Investing in 
Main Street Act of 2017, increases this investment threshold to 15 
percent and requires any investment above the 5 percent mark to be 
subject to approval by the bank's regulator. This new 15 percent marker 
brings parity to the program with rules by the Office of the 
Comptroller of the Currency.
  As the Nation's small businesses continue to experience difficulties 
accessing capital, assistance like the SBIC program delivers, and has a 
track record to prove it. Some of the Nation's most prominent companies 
have received SBIC financing in the past. The update provided in H.R. 
2364 will continue and build upon the success of the program.
  This bill has broad bipartisan support and was favorably passed out 
of committee unanimously. I would urge my colleagues to vote ``yes'' on 
H.R. 2364.
  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.
  Mr. Speaker, I rise in support of my bill, H.R. 2364, the Investing 
in Main Street Act of 2017.
  Small businesses are the backbone of our economy, accounting for two 
out of every three new jobs. So as part of our commitment to creating 
opportunities and growing our economy, it is our responsibility to help 
more small businesses succeed.
  The SBA's Small Business Investment Company, or SBIC, program is an 
effective tool that facilitates private investment into early stage 
startup small businesses across the country, and all at no Federal 
cost.
  Tesla, FedEx, Apple, Intel, and Costco are just a few examples of the 
thousands of small businesses that have successfully used the Small 
Business Investment Company program during their early stages of 
growth.
  One of the SBIC program's greatest strengths is its hands-off 
approach, giving fund managers the autonomy to invest in almost any 
business sector they choose, from apparel to cutting-edge technology. 
This freedom, coupled with sound investment strategies, has led to its 
success.
  In fact, in 2016, the SBIC program provided $6 billion in financing 
to 1,200 small businesses and helped to sustain over 120,000 jobs. It 
has afforded America's small businesses an invaluable opportunity to 
grow their innovative ideas.

                              {time}  1645

  However, the SBIC program is currently restricted from taking more 
than 5 percent of capital investments from banks due to an outdated 
provision in the Small Business Investment Act of 1958. At the same 
time, current banking regulations established by the Office of the 
Comptroller of the Currency allow these banks to invest up to 15 
percent of their capital and surplus into SBICs.
  The Investing in Main Street Act will correct this discrepancy by 
allowing banks and Federal savings associations to invest up to 15 
percent of their holdings to these funds to match current banking 
regulations. This change will strengthen and grow the SBIC program, 
unleashing more capital to small businesses, and all at no cost to the 
taxpayer. That means more entrepreneurs will be able to access the 
capital they need to grow their businesses and hire more workers.
  This legislation makes a sensible change to address the number one 
need of small firms: accessing capital.
  I would like to thank our cosponsors, Representative Knight and 
Representative Meng, for their support, and I ask my fellow Members to 
support this bill.
  I reserve the balance of my time.
  Mr. CHABOT. Mr. Speaker, I have no further speakers, and I reserve 
the balance of my time.
  Ms. JUDY CHU of California. Mr. Speaker, I yield 3 minutes to the 
gentlewoman from North Carolina (Ms. Adams), the ranking member of the 
committee.
  Ms. ADAMS. Mr. Speaker, I thank the gentlewoman from California for 
yielding.
  Mr. Speaker, small businesses are the backbone of our economy. This 
is particularly true in my home State of North Carolina. According to a 
recent report, North Carolina is the number one State in the country 
for starting a small business. As such, I will support programs that 
allow them to flourish.
  Today, as vice ranking member of the Small Business Committee, I rise 
to express my full support for H.R. 2364, the Investing in Main Street 
Act.
  The number one concern raised by small businesses is the lack of 
access to capital; and because of this access problem, small businesses 
tend to rely more on personal credit cards, often with higher interest 
rates, than on more affordable small business loans.
  The Investing in Main Street Act helps free up affordable capital, 
and this bill increases access to capital for small businesses by 
raising the percentage capital banks and savings associations may 
invest in small businesses up to 15 percent. With increased 
opportunity, entrepreneurs will be able to grow and expand their 
businesses as well as hire more employees, allowing them to reach their 
full potential.
  The Investing in Main Street Act is good for business, it is good for 
small business, and it is good for our economy.
  I want to thank Chairman Chabot and Ranking Member Velazquez and all 
of my colleagues for supporting this bill, and I urge my colleagues to 
support this bill as we may continue to give small businesses 
opportunities to thrive and employ American workers.
  Mr. CHABOT. Mr. Speaker, I continue to reserve the balance of my 
time.
  Ms. JUDY CHU of California. Mr. Speaker, I yield myself such time as 
I may consume.
  Mr. Speaker, access to capital is the lifeblood of every small 
business. The

[[Page 11445]]

SBIC program fills the gap between the availability of venture capital 
and the needs of small businesses in startup and growth situations.
  The SBIC program has long been an important way of channeling capital 
to leading-edge, high-growth companies. In fact, some of the Nation's 
most successful corporations received early-stage financing from SBICs. 
Without it, they may not be the companies that they are today.
  The key to the program's success is leveraging Federal funds to 
increase the amount of private capital invested in such promising 
startup companies. By dramatically increasing the amount of capital in 
the SBIC program, the changes made by H.R. 2364 will result in 
significant small business investment. As such, I once again urge my 
colleagues to support this measure.
  Mr. Speaker, I yield back the balance of my time.
  Mr. CHABOT. Mr. Speaker, I yield myself such time as I may consume.
  In closing, I would like to thank the gentlewoman from California 
(Ms. Judy Chu) and the gentlewoman from North Carolina (Ms. Adams) for 
their leadership in introducing this and pushing this important 
legislation forward.
  Once again, it is a bipartisan piece of legislation, and we have 
worked together. Republicans and Democrats working together, isn't that 
something? So we appreciate their hard work on this.
  With small businesses being the cornerstones of nearly every 
community in the Nation, we must continue to work together to create an 
environment for growth and job creation. The 29 million small 
businesses all across the Nation are depending on us actually working 
together on things like this.
  I know the ranking member of the committee likes to say, ``There 
aren't Republican small businesses; there aren't Democratic small 
businesses; they are just small businesses,'' and she is absolutely 
right. So I really do appreciate their working on this legislation.
  H.R. 2364 is commonsense legislation that enjoys bipartisan support. 
I urge my colleagues to vote ``yes'' on this.
  I yield back the balance of my time.
  Ms. JACKSON LEE. Mr. Speaker, I rise in support of H.R. 2364, which 
authorizes financial institutions to invest more of their capital in 
small business investment funds.
  As it stands, federally insured banks and savings associations are 
limited to investing a maximum of 5 percent of their capital and 
surplus in Small Business Investment Companies (SBIC).
  Small Business Investment Companies (SBIC) are private funds, 
licensed and regulated by the Small Business Administration, that make 
investments in small businesses using their own capital or loans 
borrowed with an SBA guarantee.
  Under H.R. 2364, financial institutions would be able to invest as 
much as 15 percent of their capital and surplus in SBICs.
  There are over 8 million small businesses in America, which account 
for 54 percent of all U.S. sales.
  Small businesses also provide 55 percent of all jobs and 66 percent 
of all net new jobs since the 1970s.
  With more than half of Americans either owning or working for a small 
business, it is clear these companies are a vital part of our nation 
economy.
  As the representative for Houston, one of the leading cities for 
entrepreneurs and small businesses, I remain mindful of the 
significance of, and have strongly advocated for policies that will 
preserve and create jobs and keep our nation's small business sector 
strong.
  When small firms are able to grow and thrive, we all benefit from 
their innovations, job-creating power, and ability to make the U.S. 
more competitive globally.
  That is why I urge all members to join me in supporting H.R. 2364.
  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. 2364.
  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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