Rep. Dan Meuser, U.S. Representative for Pennsylvania's 9th District | Official U.S. House headshot
Rep. Dan Meuser, U.S. Representative for Pennsylvania's 9th District | Official U.S. House headshot
WASHINGTON, D.C.— Today, legislation introduced by Representatives Dan Meuser (R-PA) and Hillary Scholten (D-MI), H.R. 5333, the Investing in All of America Act of 2023, unanimously passed in the House Small Business Committee. This legislation aims to incentivize greater private capital investments in small businesses, particularly those in rural or low-income areas, and those operating in the national security sector. The bill has garnered bipartisan support, with various representatives endorsing the initiative.
Small Business Investment Companies (SBICs) play a crucial role in this legislation, as they are privately owned firms regulated by the Small Business Administration (SBA). These companies raise private capital, which is then matched with leverage by the SBA and invested directly into small businesses. Over the years, SBIC-backed businesses have significantly contributed to job creation and economic growth. Despite their success, studies have shown that a small percentage of SBIC investments reach low to middle-income communities, prompting the need for more equitable distribution of investment capital.
Congressman Dan Meuser emphasized the importance of this legislation, stating, "By implementing additional bonus leverage within the SBIC Program, this legislation incentivizes investment and supports economic growth in often-underserved communities." He highlighted the challenges faced by small businesses in accessing capital and underscored the bill's potential to bolster economic growth in various regions across the country.
The Investing in All of America Act not only seeks to address the gap in investment distribution but also adjusts SBIC leverage caps to account for inflation. This adjustment ensures that SBICs' investment power remains aligned with market trends, thereby continuing to support small businesses effectively.
The legislation, H.R. 5333, was favorably reported by the Small Business Committee with a vote of 23-0 and now awaits further consideration by the full House of Representatives. The cosponsorship from a diverse group of representatives reflects the bipartisan nature of the effort to stimulate private capital investment in rural and low-income areas.
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