SBIA-Backed Bill Increasing Investment in BDCs Introduced in House

Congressman Paulsen Sponsors Bill to Attract Foreign Capital in BDCs

WASHINGTON--()--The Small Business Investor Alliance (SBIA), the leading association of lower middle market private equity funds and investors, calls legislation introduced by Congressman Erik Paulsen (R-MN) a critical milestone that will enable Business Development Companies (BDCs) to increase support for America’s small businesses. Congressman Paulsen’s bill, H.R.2115, will make permanent a tax provision that attracts greater foreign investment in domestic BDCs.

“This bill will eliminate a significant hurdle blocking foreign capital investment in BDCs,” said Brett Palmer, President of SBIA. “BDCs are a major source of capital that stimulates job creation and growth in small and mid-sized businesses. This bill is one of the priorities identified in the SBIA Capital Formation Agenda and of great importance to our BDC members.”

“Increasing investment in our small and medium-sized businesses will mean more jobs and a healthier economy,” said Congressman Paulsen. “Eliminating barriers that prevent foreign capital from reaching our job creators will increase the opportunities for American businesses to grow and expand.”

H.R.2115 makes permanent a temporary tax provision in the U.S. Tax Code removing withholding tax on dividend interest payments to foreign investors that expired at the end of 2014. This move could unlock billions of available capital that ultimately would support growing middle market companies.

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 over 80 active BDCs in the U.S. and this rapidly growing industry has already surpassed $70 billion. Access to foreign investment sources increases the ability of BDCs to pour more capital into small businesses and further stimulate job creation and economic growth.

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.

Contacts

Small Business Investor Alliance
Catherine Kaliniak, 202-888-7419
Catherine@sbia.org

Contacts

Small Business Investor Alliance
Catherine Kaliniak, 202-888-7419
Catherine@sbia.org