Representatives Moore and Rogers Introduce Legislation to Spur Economic Development in Low-Income Areas
Press Release
Representatives Moore and Rogers Introduce Legislation to Spur Economic Development in Low-Income Areas
Today Congresswoman Gwen Moore and Congressman Harold (Hal) Rogers (R-KY) reintroduced the Securing Equity for the Economic Development of Low-Income Areas Act (SEED Act). The bill would reauthorize and expand the New Markets Venture Capital Program, which was created to make equity investments in small businesses located in economically distressed communities in urban and rural areas. The SEED Act would provide $100 million in debenture guarantees and $25 million for operational assistance grants to fund the creation of a fresh round of NMVC companies.
"Access to equity capital is a major barrier to success for small businesses located in low-income communities. The SEED Act will bring investment to underserved areas that have long been ignored by conventional venture capital firms," said Congresswoman Moore. "Since small businesses account for nearly 75 percent of all new jobs and account for 99 percent of all employers, increased investment in small businesses will lead to the creation of new jobs and generate much needed economic development in areas that have experienced better days."
The NMVC Program was established in 2000 for the purpose of making equity investments in small businesses located in economically distressed communities. The initiative funds the creation of NMVC companies, regional venture capital firms that can leverage equity capital to invest in these small businesses. Six such companies have been formed through the program and they have invested more than $48 million in 75 companies, all of which are based in low-income communities.
Despite the program's success, it has not received funding in the last five fiscal years. Congresswoman Moore has led recent efforts to restore the program's funding so that additional small businesses in low-income communities can benefit from the financing and operational assistance provided by NMVC companies.
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