U.S. Senators Jim Risch (R-Idaho) and Todd Young (R-Ind.) have introduced the Investing in Main Street Act, aiming to boost investment in small businesses by increasing the amount banks can invest in Small Business Investment Companies (SBICs) up to 15% of their capital.
Since 2020, SBICs have provided nearly $120 million in funding to businesses throughout Idaho. The legislation seeks to improve access to early-stage capital for entrepreneurs by enabling banks to provide greater financial support through SBICs.
“Idaho small businesses fuel our economy, employ our friends and family, and are the lifeblood of our communities,” said Risch. “The Investing in Main Street Act supports Gem State entrepreneurs’ access to early-stage capital by allowing banks to invest more to Small Business Investment Companies.”
“The Small Business Investment Company program has provided critical support to countless Hoosier small businesses,” said Young. “Our legislation will help spur further investment in innovative startups and unlock capital for existing, high-growth small businesses across America.”
The SBIC program was established by the Small Business Administration in 1958 with the goal of promoting private investment into U.S. small businesses. Over time, it has contributed to job creation and economic growth by supporting business expansion at the local level.
Senators Tammy Duckworth (D-Ill.) and Ruben Gallego (D-Ariz.) also joined as co-sponsors of the bill.
