Murphy-McMorris Rodgers Bill to Encourage Investment in Small Businesses Becomes Law
Legislation improves Small Business Administration program that provides job creators with capital
President Donald Trump today signed into law bipartisan legislation introduced by U.S. Congresswomen Cathy McMorris Rodgers, R-Wash., and Stephanie Murphy, D-Fla., to spur job creation by helping more small businesses access growth capital. The legislation, H.R. 4111, the Spurring Business in Communities Act, makes improvements to the federal Small Business Investment Company (SBIC) program, which facilitates the flow of private capital to small businesses. This new law will help ensure SBICs are accessible to job creators in all parts of the country, not just those located in finance-heavy regions. This is the 19th Murphy-led measure to become law this Congress.
“As a former businesswoman, I know how important growth capital is to starting and sustaining a successful small business,” said Murphy, Ranking Member on the House Small Business Committee’s Subcommittee on Contracting and Workforce. “Securing private capital remains a challenge for too many businesses. I am incredibly proud that our bipartisan legislation to support small businesses and boost private sector job creation is now law.”
“Small businesses are the backbone of our economy, providing two out of every three new jobs in America and serving as a foundation for our communities,” said McMorris Rogers, Chair of the House Republican Conference. “Small Business Investment Companies serve an important function in providing capital and support to these job creators, however, there are currently none here in Washington state. My bipartisan bill, which now heads to the president’s desk to become law, will make it easier for them to form here in Eastern Washington and invest in our community and local small businesses.”
“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 dated May 2018 in support of the legislation. “We are pleased to support H.R. 4111, the Spurring Business in Communities Act of 2017... With more small business investment, we can expand economic opportunity to more communities across the country.”
Under the SBIC program, the Small Business Administration partners with licensed, privately owned and managed investment companies 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.
The Murphy-McMorris Rogers legislation amends the Small Business Investment Act of 1958 to require the Small Business Administration, in reviewing and processing an SBIC's application, to give first priority to SBIC applicants located in states with no or fewer SBICs.