The U.S. House of Representatives today unanimously approved a bipartisan bill introduced by U.S. Congresswomen Stephanie Murphy, D-Fla., and Cathy McMorris Rodgers, R-Wash., to help more small businesses obtain access to private equity capital and long-term loan funds. H.R. 4111, the Spurring Business in Communities Act of 2017 makes improvements to the federal Small Business Investment Company (SBIC) program, which facilitates the flow of private capital to small businesses. This bipartisan legislation would help ensure that SBICs are accessible to job creators in all parts of the country, not just those located in finance-heavy regions.
“As a former businesswoman, I know how important growth capital is to establishing a thriving small business,” said Murphy, a member of the House Small Business Committee. “I am proud to work with Congresswoman McMorris Rodgers to advance this bipartisan legislation, which will boost private sector job creation and make it possible for more small businesses across the country to access the financing needed to grow their enterprises and strengthen our economy.”
“Small Business Investment Companies, or SBICs, play an important role in providing access to capital for startups and other small businesses. The only problem? There are currently none here in Washington state,” said McMorrris Rodgers, Chair of the House Republican Conference. “My bill will help change that by making it easier for them to form here in our state, invest in people in our community, grow our local economy, and create jobs. By supporting small businesses, we can help ensure that there are more jobs and opportunities here in Eastern Washington for people to live their American Dream.”
“For 60 years, the Small Business Investor Alliance has championed policies that enhance domestic investment in growing small businesses,” said Small Business Investor Alliance President Brett Palmer in a letter in support of the legislation. “We are pleased to support H.R. 4111, the Spurring Business in Communities Act of 2017, which is being considered today by the House of Representatives. With more small business investment, we can expand economic opportunity to more communities across the country.”
Under the program, the Small Business Administration partners with licensed, privately owned and managed SBICs to raise capital for small businesses. In Fiscal Year 2017, SBICs provided about 200 financings totaling nearly $420 million in Florida alone, the third-highest of any state.