The Small Business Investor Alliance (SBIA), the leading association of lower middle market private equity funds and investors, claimed another victory in its fight to increase capital investment in small business with passage of the Small Business Investment Company (SBIC) Capital Act of 2015, H.R. 1023. This legislation is among the top priorities in the SBIA Capital Formation Agenda.

Championed by the Chair of the Small Business Committee, Congressman Steve Chabot (R-OH), H.R. 1023 raises a statutory cap that is currently restricting proven small business investors from accessing new SBIC leverage. This bipartisan measure will prevent as many as 30 percent of debenture SBIC “Family of Funds” investors—which are SBICs under the same management umbrella—from hitting the cap when they raise their next fund.

“A strong House vote in support is substantial progress. Small business has a champion in Chairman Chabot and the sponsors of H.R. 1023,” said Brett Palmer, President of the Small Business Investor Alliance. “Enactment of this important bill will give America’s small businesses access to the vital capital they need to continue to grow and create jobs. We urge the U.S. Senate to continue the momentum by passing this bipartisan measure to raise this outdated limit and enable small business investors to increase investments in domestic companies.”

“People all over the country have jobs because SBIC partnerships with small businesses helped those businesses open their doors. Our bill makes those partnerships stronger and helps make more good-paying jobs a reality at no cost to taxpayers. I appreciate all those who helped us get this bill passed today, and I’m looking forward to seeing more small businesses prosper after it becomes law,” said Chairman Chabot.

Many SBIC investors are hitting or will hit the current cap. Since the cap was last raised in 2009, there has been an additional $8.5 billion invested in small businesses. There are more than 190 licensed debenture SBICs in the U.S. with over $21 billion in total assets. Over the past two years, SBICs have invested approximately $10 billion into American small businesses.

Cosponsors of H.R. 1023 are Representatives Mike Bost (R-IL), Matt Cartwright (D-PA), Carlos Curbelo (R-FL), Judy Chu (D-CA), David Cicilline (D-RI), Chris Collins (R-NY), Renee Ellmers (R-NC), Christopher Gibson (R-NY), Janice Hahn (D-CA), Richard Hanna (R-NY), Steve Knight (R-CA), Brenda Lawrence (D-MI), Blaine Luetkemeyer (R-MO), and Grace Meng (D-NY). The House Small Business Committee passed H.R. 1023 on June 10.

About the Small Business Investor Alliance

The Small Business Investor Alliance (SBIA) is the premier organization of lower middle market private equity funds and investors. SBIA works on behalf of its members as a tireless advocate for policies that promote competitive markets and robust domestic investment for growing small businesses. SBIA has been playing a pivotal role in promoting the growth and vitality of the private equity industry for more than 50 years. For more information, visit www.SBIA.org or call 202-628-5055.