Berks County News

Recently, U.S. Representatives Dan Meuser (R-PA) and Hillary Scholten (D-MI) introduced the Investing in All of America Act of 2023, known as H.R. 5333. This bill aims to increase the availability of capital for small businesses, particularly those in rural or low-income areas and those involved in national security.

Small Business Investment Companies (SBICs), which are privately owned entities licensed and regulated by the Small Business Administration (SBA), play a crucial role in this initiative. These companies raise private capital that is matched with leverage by the SBA to invest directly in small businesses. Notably, the SBIC program operates at no cost to American taxpayers since taxpayer funds are not used to support credit extended through these investments.

Despite its success, recent studies indicate that less than 20% of SBIC investments reach low-middle income communities. The new legislation seeks to change this by encouraging more capital deployment into underserved areas. To achieve this goal, investments made in rural or low-income areas and the national security sector will not count against an SBIC’s leverage cap, allowing additional capital flow into these regions.

Congressman Meuser emphasized the importance of access to capital for small businesses: “Access to capital is often cited by small businesses as among their greatest challenges, particularly those in rural or low-income areas. By providing bonus leverage within the SBIC Program for investments in rural and low-income areas, we will help drive greater investments into these often-underserved communities."

Congresswoman Scholten highlighted the bill's alignment with national defense interests: “The SBIC program has a proven track record of providing critical capital to small businesses. Our bipartisan bill will bolster the SBIC program’s long history of success as a zero-subsidy public-private partnership by encouraging investments in rural areas and industries that are vital to national defense here in West Michigan and across the country.”

Brett Palmer, President of Small Business Investor Alliance, supported the legislation stating: "This is smart policy that will help small businesses in underserved parts of the country access growth capital."