WASHINGTON--(BUSINESS WIRE)--The Small Business Investor Alliance (SBIA), the leading association of lower middle market private equity funds and investors, applauds the House Financial Services Committee for passing H.R. 3868, the Small Business Credit Availability Act. The bill was sponsored by Representative Mick Mulvaney (R-SC) and co-sponsored by Representatives Steve Stivers (R-OH) and Brad Sherman (D-CA). The bill passed out of the committee by a vote of 53 to 4. This bipartisan legislation modernizes rules for Business Development Companies (BDCs), helping BDCs support American jobs and foster economic growth.
“The exceptionally strong bipartisan vote was the result of Members of Congress working together to support small and medium-sized businesses. The strong support of this legislation underscores the belief by Members of Congress that if BDC legislation can be passed, the BDC industry will be able to play a larger role in providing capital to small and medium sized companies,” said Brett Palmer, President of the SBIA. “We urge both Houses of Congress to continue this forward progress and deliver the vital reforms needed by the BDC industry that, in turn, will provide substantial benefit to domestic small businesses and local economies across the country.”
Among the key provisions of the legislation are streamlining the BDC offering process, updating proxy rules, and expanding access to capital by changing the “asset coverage ratio.” These and other priority reforms are part of the SBIA Capital Formation Agenda for BDCs detailed in the SBIA BDC Modernization Agenda. SBIA endorsed this bill and lobbied for its passage. This is the third piece of legislation from the SBIA Capital Formation Agenda that has passed a major Committee in Congress this year. SBIA members Vince Foster with Main Street Capital Corporation and Michael Gerber with Franklin Square Capital Partners testified before Congress earlier this year in support of BDC modernization.
BDCs are government-regulated investment companies created by Congress in 1980 to provide new and increased sources of capital for small and mid-sized American companies. There are 88 active BDCs in the U.S. and this rapidly growing industry has already surpassed $87 billion.
About the Small Business Investor Alliance (SBIA)
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 over 50 years. For more information, visit www.SBIA.org or call (202) 628-5055.