Investing in Main Street Act of 2021

Floor Speech

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Ms. VELAZQUEZ. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 4256) to amend the Small Business Investment Act of 1958 to increase the amount that certain banks and savings associations may invest in small business investment companies, subject to the approval of the appropriate Federal banking agency, and for other purposes, as amended.

The Clerk read the title of the bill.

The text of the bill is as follows: H.R. 4256

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE.

This Act may be cited as the ``Investing in Main Street Act of 2021''. SEC. 2. INVESTMENT IN SMALL BUSINESS INVESTMENT COMPANIES.

Section 302(b) of the Small Business Investment Act of 1958 (15 U.S.C. 682(b)) is amended--

(1) in paragraph (1), by inserting before the period the following: ``or, subject to the approval of the appropriate Federal banking agency, 15 percent of such capital and surplus'';

(2) in paragraph (2), by inserting before the period the following: ``or, subject to the approval of the appropriate Federal banking agency, 15 percent of such capital and surplus''; and

(3) by adding at the end the following:

``(3) Appropriate federal banking agency defined.--For purposes of this subsection, the term `appropriate Federal banking agency' has the meaning given that term under section 3 of the Federal Deposit Insurance Act.''. SEC. 3. DETERMINATION OF BUDGETARY EFFECTS.

The budgetary effects of this Act, for the purpose of complying with the Statutory Pay-As-You-Go Act of 2010, shall be determined by reference to the latest statement titled ``Budgetary Effects of PAYGO Legislation'' for this Act, submitted for printing in the Congressional Record by the Chairman of the House Budget Committee, provided that such statement has been submitted prior to the vote on passage.

Mr. Speaker, I rise in support of the bill before us today, H.R. 4256, the Investing in Main Street Act of 2021.

Since 1958, the Small Business Investment Company program, also known as the SBIC program, has been an integral part of SBA's mission to provide small businesses with capital and create jobs. It achieves this purpose by partnering private and public investments in early-stage startup businesses. In fact, in 2020, the SBIC program provided almost $5 billion in financing for 1,063 small businesses and helped sustain almost 92,000 jobs.

This program gives America's small, high-growth companies an opportunity to fund and grow their innovative ideas and create jobs. Just look at companies like Apple, Tesla, or FedEx. Each has achieved what we all hope for every small business, extraordinary growth and success. And each of them received early-stage financing from SBICs.

One of the strengths of this program is the hands-off approach SBA takes with respect to individual investments, giving fund managers the flexibility to invest in almost any business or sector they choose as it fits their fund's investment strategy.

This freedom, combined with decades of sound investment strategy, has led to its success. The SBIC program has helped increase the flow of patient capital to small, high-growth companies, but we can do more to ensure the program continues to meet demand.

Ms. Chu and Mr. Garbarino's bill will strengthen and grow the SBIC program by allowing banks and Federal savings associations to invest up to 15 percent of their capital and surplus into SBICs. This increase in capital, which comes at no cost to the taxpayer, offers entrepreneurs the financing necessary to grow their businesses and continue to innovate.

I applaud Ms. Chu and Mr. Garbarino for identifying this issue and finding a sensible solution.

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Ms. VELAZQUEZ. Chu), a sponsor of the bill.

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Ms. VELAZQUEZ. Mr. Speaker, I have no further speakers, and I am prepared to close.

As the small business economy recovers from the COVID-19 pandemic, entrepreneurs will need as many options for affordable capital as possible. The SBIC program fills the gap between the availability of venture and private equity capital and the needs of small businesses in startup and growth situations.

For decades, this program has channeled patient capital to leading- edge, high-growth companies. Some of our Nation's most successful corporations received early-stage funding from SBICs. Without it, they would not be the companies they are today. The bill we are considering today will lead to additional investment by SBICs, which will, in turn, lead to strong economic growth in our local communities.

The Investing in Main Street Act has bipartisan support, and it is endorsed by the Small Business Investor Alliance.

I want to applaud Ms. Chu and Mr. Garbarino for their bipartisan work on this SBIC program. I urge my colleagues to vote ``yes,'' and I yield back the balance of my time.

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