U.S. Sens. Todd Young (R-IN) and Shelley Moore Capito (R-WV) on June 26 cosponsored a bipartisan bill to direct the Small Business Administration (SBA) to approve or decline applicants within specific timelines and require Federal Bureau of Investigation (FBI) background checks on all pending applicants.
“This bipartisan legislation will provide greater certainty to entrepreneurs and small business owners and improve a process that helps them access the investments they need to thrive,” said Sen. Capito.
Sens. Young and Capito introduced the Small Business Investment Improvement Act of 2019, S. 1975, with bill sponsor U.S. Sen. Jim Risch (R-ID) to create oversight of the SBA Small Business Investment Company (SBIC) program, which has experienced a backlog of applications that, in turn, has exposed a weakness in the application process, according to a summary of the bill provided by the lawmakers.
“The SBIC program has invested more than $451 million dollars in 135 Hoosier small businesses over the last 10 years,” said Sen. Young. “Delays in the application process are preventing these numbers from being even higher.”
If enacted, S. 1975 would ensure more oversight of the application process and provide a tailored approach to applicants by requiring application decisions within set reasonable timelines, which would be tailored to the category of fund, while also codifying important oversight of the fund, including an FBI background check, according to the summary.
“This commonsense legislation will streamline the application process, improve oversight and ensure that the SBIC program is running as efficiently as possible so that Indiana small businesses can continue to grow,” Sen. Young said.
Sen. Capito added that small businesses are the backbone of local communities across the nation.
“And in a state like ours — where startup capital is harder to come by — the SBIC program plays an important role in helping them succeed,” she said.