A bipartisan, pro-business bill sponsored by U.S. Rep. Cathy McMorris Rodgers (R-WA) became federal law on Dec. 19 with the president’s signature.
The Spurring Business in Communities Act of 2017, H.R. 4111, introduced in October 2017 by Rep. McMorris Rodgers and U.S. Rep. Stephanie Murphy (D-FL), aims to lure more small business investment companies (SBICs) to under-licensed states, particularly her home state of Washington.
H.R. 4111 “will make it easier for them to form here in eastern Washington and invest in our community and local small businesses,” said Rep. McMorris Rodgers on Dec. 6 when the U.S. Senate approved the measure and sent it to President Donald Trump to sign into law.
“Small businesses are the backbone of our economy, providing two out of every three new jobs in America and serving as a foundation for our communities,” the congresswoman said, adding that SBICs play a critical role in providing capital to these job creators.
“However, there are currently none here in Washington state,” she said.
McMorris Rodgers’ staff noted that SBICs reported more than $800 million in financing during the fourth quarter of 2017 and created more than 16,000 jobs, according to the Small Business Administration’s most recent report.
Rep. Murphy, a former businesswoman, realizes “how important growth capital is to starting and sustaining a successful small business. Securing private capital remains a challenge for too many businesses. I am incredibly proud that our bipartisan legislation to support small businesses and boost private sector job creation is now law.”
H.R. 4111 will amend the Small Business Investment Act of 1958 to require the Small Business Administration (SBA), in reviewing and processing an SBIC application, to give first priority to applicants located in an under-licensed state with below-median financing, meaning a state where the number of licensees per capita is less than the median number of licensees per capita for all states. The measure also will exempt SBIC applicants in under-licensed states from certain SBA capital requirements, according to the congressional record summary.
H.R. 4111 is the seventh bill sponsored by Rep. McMorris Rodgers in the last year to become a federal law.