The U.S. House of Representatives on Wednesday passed a bipartisan bill introduced by U.S. Rep. Andrew Garbarino (R-NY) that would improve access to capital for America’s small businesses. The measure now heads to the U.S. Senate for action.
Specifically, Rep. Garbarino on Jan. 20 cosponsored the Investing in Main Street Act of 2023, H.R. 400, with bill sponsor U.S. Rep. Judy Chu (D-CA). Introduced on Jan. 20, H.R. 400 was passed in the House on Jan. 25 with a 411-13 vote.
“I applaud my colleagues in the House for moving swiftly to pass this important legislation,” Rep. Garbarino said on Wednesday. “I thank Congresswoman Chu for leading this effort.”
If enacted, H.R. 400 would amend the Small Business Investment Act of 1958 by increasing the amount that certain banks and savings associations may invest in Small Business Investment Companies (SBICs) from 5 percent to 15 percent, subject to the approval of the appropriate federal banking agency, according to a bill summary provided by Rep. Garbarino’s office.
“Small businesses are major contributors for economic growth and prosperity, especially in my district on Long Island,” said the congressman. “As we face economic uncertainty due to inflation, labor shortages, and other ongoing challenges, we look to our small businesses to be leaders in the private sector and to help revitalize our communities.
“This legislation will ensure that small businesses can gain access to the additional capital they need to do just that,” he said.
Rep. Chu said that as the nation emerges from the COVID-19 pandemic, Congress must make sure small businesses have the capital they need to succeed. SBICs, she said, “are one of the best ways to deliver these investments, but for too many years, an outdated law has limited the amount that could be invested in them.
“The Investing in Main Street Act… could triple the amount of investment capital available to our country’s small businesses,” Rep. Chu added.
The Small Business Investor Alliance endorsed the bill.