Last week, U.S. Senators Todd Young (R-Ind.), Tammy Duckworth (D-Ill.), and Jim Risch (R-Idaho) reintroduced the 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).
In 1958, the Small Business Administration launched the SBIC program to facilitate and regulate investment from privately owned companies to U.S. small businesses. This program has successfully allowed more small businesses across America to expand their competitive edge, hire more workers, and contribute to the local economy. Over the last 5 years, SBICs have invested nearly $554 million to 107 small businesses throughout Indiana.
“The Small Business Investment Company program has provided critical support to countless Hoosier small businesses,” said Senator Young. “I’m proud to reintroduce this bipartisan legislation to help spur further investment in innovative startups and unlock capital for existing, high-growth small businesses across Indiana and America.”
“Small businesses are the backbone of our economy—when they grow, our economy grows. Yet many small business owners struggle to access affordable capital that could enable them to expand and grow their enterprises while creating good-paying jobs,” said Senator Duckworth. “I am proud to join Senators Young and Risch in introducing this bipartisan legislation to help expand the capacity of banks to get more dollars in the hands of small business owners in Illinois and across our nation.”
“Small businesses are the lifeblood of Idaho—fueling our economy, employing our friends and family, and making our state so unique,” said Senator Risch. “To give Gem State entrepreneurs a boost, the Investing in Main Street Act will increase access to early stage capital by allowing banks to invest more into Small Business Investment Companies.”
“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 $554 million in Indiana small businesses over the past five years with nearly $113 million invested in 2023 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.
Full bill text is available here.
