Friday, U.S. Senators Todd Young (R-Ind.), Tammy Duckworth (D-Ill.), and Jim Risch (R-Idaho) reintroduced their Investing in Main Street Act to increase investment in small businesses by permitting banks to invest up to 15 percent of their capital in Small Business Investment Companies (SBIC). The dramatic increase in capital for the SBIC program would be deployed to domestic small businesses at no cost to the taxpayer.
Since 1958, Small Business Investment Companies (SBIC) have proven that capital can be directed to a variety of novel businesses in order to expand its competitive edge and hire American workers. Over the last 10 years, the Small Business Administration’s SBIC Program has channeled roughly $719 million to 139 small businesses throughout Indiana, which has contributed to creating or maintaining more than 15,000 Hoosier jobs.
“The Small Business Investment Company (SBIC) Program is one of the great successes of the Small Business Administration. The positive effects of this program can be seen in countless Hoosier small businesses and companies,” said Senator Young. “I’m proud to reintroduce this bipartisan legislation to ensure we can spur more investments in innovative startups and unlock capital for existing, high-growth businesses across the state.”
“Everybody knows that when small businesses grow, our economy grows. Yet many small business owners lack access to the funding necessary to grow and create good-paying jobs,” said Senator Duckworth. “I am proud to join Senators Young and Risch in introducing this bipartisan legislation, which would help expand banks’ capacity to get more resources into the hands of small business owners and entrepreneurs across the country.”
“Small businesses form the backbone of our economy. When we invest in them, we invest in our country’s economic future,” said Senator Risch. “This legislation will put early stage capital within reach for more entrepreneurs to grow their businesses, create jobs, and strengthen our communities.”
“We are grateful that Senators Young, Duckworth, and Risch understand the importance of increasing capital access to small businesses. SBICs are powerful job-creating vehicles that have had an enormous impact in Indiana and across the country, having invested more than $710 million in Indiana small businesses over the last decade with nearly $93 million invested in 2020 alone. With this simple legislation, small businesses will have access to capital for growth and advancement, which in turn will create employment opportunities for Hoosiers,” said Faraz Abbasi, Managing Partner at Centerfield Capital based in Indianapolis.
To view the full bill text, click here.