On Wednesday, the U.S. House of Representatives passed a bipartisan bill introduced by U.S. Representative Andrew Galvarino (R-NY) that would improve access to capital for U.S. small businesses. The bill is now set for action in the U.S. Senate.
Specifically, Rep. Garbarino on Jan. 20 co-sponsored the Invest in Main Street Act of 2023, HR 400, with U.S. Rep. Judy Chu (D-California), who sponsored the bill . Introduced on January 20, HR 400 was passed by the House of Representatives on January 25 with her vote of 411 to 13.
“I applaud my colleagues in the House for moving quickly to pass this important piece of legislation,” Rep. Galbarino said Wednesday. “We thank Senator Chu for leading this effort.”
HR 400, if enacted, would increase the amount that certain banks and savings associations may invest in Small Business Investment Corporations (SBICs) from 5% to 15%, subject to appropriate federal bank approval, thereby reducing the Amending the Small Business Investment Law. According to an outline of the bill provided by Rep. Galbarino’s office.
“Small businesses are a big contributor to economic growth and prosperity, especially in my district of Long Island,” the lawmaker said. “As we face economic uncertainty due to inflation, labor shortages, and other ongoing challenges, we expect SMEs to become leaders in the private sector and help revitalize their communities. I’m here.
“This law will give small businesses access to the extra capital they need to do just that,” he said.
Chu said Congress must ensure that small businesses have the capital they need to succeed as the nation emerges from the COVID-19 pandemic. SBICs are one of the best ways to make these investments, but for too long, outdated laws have limited the amount you can invest in SBICs.
“The High Street Investment Act … has the potential to triple the amount of investment capital available to small businesses in our country,” Chu added.
The Small Business Investors Alliance has approved the bill.