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U.S. Rep. Judy Chu (D-California) and Andrew Galbarino (R-New York) recently passed the Main Street Investment Act of 2023 (HR 400) in the House to help grow small business investment companies (SBICs) I admired what was done. .
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Introduced by Chu and Garbarino, the law amends the Small Business Investment Act of 1958 to raise the percentage of capital and surplus that banks or federal savings associations can invest in SBICs in line with current banking regulations.
The SBIC program ensures that the Small Business Administration (SBA) increases access to low-cost, government-backed investment capital for high-growth start-ups. The Investment in Main Street Act amends the Small Business Investment Regulations within the Small Business Investment Act of 1958 to allow a bank to fully invest 15% in his SBIC.
“America’s entrepreneurship rate is skyrocketing as we emerge from the COVID-19 pandemic,” said Chu. “To ensure this trend continues, small businesses need to have the capital they need to succeed. Small business investment firms are one of the best ways to make these investments. But outdated laws have over the years limited how much you can invest.”
Chu said the Main Street Investment Act could triple the investment capital available to domestic SMEs.
“Small business is a major contributor to economic growth and prosperity, especially in my area of Long Island,” said Garbarino. “As we face economic uncertainty due to inflation, labor shortages, and other ongoing challenges, we expect SMEs to become leaders in the private sector and help revitalize their communities. This law will allow small businesses to access the additional capital they need to do just that.”
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