H.R. 4111, Spurring Business in Communities Act of 2017

Floor Situation

On Tuesday, May 8, 2018, the House will consider H.R. 4111, the Spurring Business in Communities Act of 2017, under suspension of the rules. This bill was introduced on October 24, 2017 by Rep. Cathy McMorris Rodgers (R-WA) and was referred to the House Committee on Small Business.

Summary              

H.R. 4111 requires the Small Business Administration (SBA) to focus on underserved areas as the Small Business Investment Company (SBIC) applications are reviewed and processed, with the goal of increasing the amount of capital flowing throughout the SBIC program to underserved areas of the country.

Background

The Small Business Administration (SBA) administers the Small Business Investment Company (SBIC) program, which utilizes private equity financing models to increase the availability of long-term capital for small businesses. SBIC’s are for-profit entities that manage investment funds, but are licensed and regulated by the SBA.

The SBIC Program was founded in 1958 and is one of many financial assistance programs available through the SBA. The SBA does not invest directly into small business through the SBIC Program, but provides loan gurantees to qualified investment management firms with expertise in certain sectors or industries.[1]

Cost

A Congressional Budget Office (CBO) estimate is not currently available.

Staff Contact

For questions or further information please contact Ryan Hofmann with the House Republican Policy Committee by email or at 2-6674.