Press Releases
Luetkemeyer's Effort to Streamline Small Business Programs Heads to House Floor
Washington, DC,
October 21, 2009
U.S. Rep. Blaine Luetkemeyer's (MO-9) bi-partisan legislation aimed at making one of the Small Business Administration's (SBA) capital access programs more effective and responsive to the needs of our country's small business owners was voted out of the House Small Business Committee today and moves now to the full House for consideration.
U.S. Rep. Blaine Luetkemeyer’s (MO-9) bi-partisan legislation aimed at making one of the Small Business Administration’s (SBA) capital access programs more effective and responsive to the needs of our country’s small business owners was voted out of the House Small Business Committee today and moves now to the full House for consideration. “At a time when small businesses are still struggling to keep their doors open, we must continue to work to improve the usefulness of these initiatives and ensure that our small businesses are able to fully utilize all available resources and that’s what this bill will help do,” Luetkemeyer said. “I’m looking forward to the full House debate on this important legislation, which seeks to improve programs that assist our country’s small business owners.” Luetkemeyer’s Small Business Investment Company Modernization and Improvement Act of 2009 updates and streamlines the SBA’s largest investment program, the Small Business Investment Company (SBIC). The legislation aims to increase the number and size of investments made in small firms under the program. Perhaps equally important, the bill endeavors to halt the continued flight of SBICs that participate in the program by establishing an expedited licensing process. This would keep successful SBICs that are in good standing involved in the program. The legislation will also revise the SBIC leverage limitations to create an incentive for well-managed SBICs to remain in the program. This will be possible by allowing SBICs that are managed by the same management team to access the increased leverage limits available for a family of SBIC funds. Additionally, businesses will have access to greater investment under the provisions of the bill that expand the Energy Saving Debenture program and increase the amounts of leverage available to invest in veteran-owned businesses. Carolyn C. Galiette, Senior Managing Director, Ironwood Capital, Avon, CT for the National Association of Small Business Investment Companies, testified before the Small Business Committee on October 14, 2009, that successful small business investment companies must go through the same licensing process as a new applicant, which undermines the utility of the program. She supported the streamlined licensing approach for experienced small business investment companies established in the Small Business Investment Company Modernization Act of 2009. Luetkemeyer’s original legislation, known as the Small Business Investment Company Modernization and Improvement Act of 2009, will move to the floor as part of the Small Business Financing and Investment Act of 2009. This is the second bill sponsored by Luetkemeyer to make the SBA’s programs more responsive to the needs of our small business men and women. ###
|