House Small Business Committee Chairman Sam Graves (R-MO) today issued the following statement on House consideration of the Small Business Investment Company Modernization Act of 2012 (H.R. 6504):
"Access to capital continues to be a challenge for many small businesses around the nation who want to grow and create jobs. The Small Business Investment Company Modernization Act of 2012 is common-sense legislation that will help infuse much needed investment capital into the private sector, at a time when our economy needs small business growth most. In the midst of a federal spending problem, this bill is the type of policy Washington should be producing, as there is no additional cost to the taxpayer. I call on the Senate to take it up without delay."
The Small Business Investment Company Modernization Act of 2012 (H.R. 6504) would provide more capital for small firms through the Small Business Administration's Small Business Investment Company (SBIC) Program. The SBIC Program is a public-private partnership that helps stimulate the flow of debt and equity capital to small businesses. The SBA grants licenses to proven fund managers in the private sector who acquire leverage from the SBA and make decisions on where to invest the money. H.R. 6504 gives experienced investment fund managers who hold more than one SBIC license the ability to obtain additional capital by raising the limitation on leverage to $350 million from $225 million. Raising the dollar cap will give more opportunity for investors to infuse promising firms with capital. At the same time, no new federal spending is required by the legislation. The program is funded by fees paid by SBICs.
In FY2011, the SBIC Program invested a record $2.59 billion in small businesses. Program success stories include: Callaway Golf, Apple Computer, Costco, Federal Express, Sports Authority, Outback Steakhouse, Dell Computer, Nike and Pandora.