(The Center Square) — U.S. Sen. Ruben Gallego, D-Arizona, has co-introduced legislation to boost investment in small businesses.
The Investing in Main Street Act would permit banks to invest up to 15% of their capital in Small Business Investment Companies. The SBIC program was launched in 1958 by the Small Business Administration, the idea being to facilitate and regulate investment from privately owned companies to small businesses.
In a press release, Gallego said starting a small business gives people a chance at achieving the American dream.
“Without capital, it is nearly impossible to get a small business off the ground,” said Gallego. “This commonsense, bipartisan bill helps unlock more capital for Main Street, empowering small businesses across the country to grow, innovate, and create jobs.”
According to Gallego’s office, the SBIC program has “successfully allowed more small businesses across America to expand their competitive edge,” create jobs and help their local economies. Over the last five years in Arizona alone, SBICs pumped more than $574 million into 116 small businesses.
Other senators behind the bill include Tammy Duckworth, D-Illinois; Todd Young, R-Indiana, and Jim Risch, R-Idaho.
Pointing to small businesses as being “the backbone of our economy,” Duckworth said the U.S. economy grows when small businesses grow. Risch made similar comments, calling small businesses “the lifeblood of our communities.” Young added that the legislation “will help spur further investment in innovative startups and unlock capital” for existing small businesses around the nation.
Industry groups and special interest organizations also favor the legislation.
Mignonne Hollis, executive director of the Arizona Regional Economic Development Foundation, said the Investing in Main Street Act is “the shot in the arm” needed for America’s small businesses.
“As a career economic development professional, I always look for ways to help small businesses thrive,” said Hollis. “Expanding the pool of investment capital available for small businesses is a no-brainer.”
Jose Martinez, president of prestamos CDFI and executive vice president of Chicanos por la Causa, said this measure will be a big help to entrepreneurs in overlooked communities.
“We appreciate Senator Gallego’s leadership on this and are proud to support it,” said Martinez.
Other endorsers of the Investing in Main Street Act include Amber Cordoba of the Arizona Community Development Financial Institution Network, Rob Elias of the Southern Arizona Hispanic Chamber of Commerce and Richard Trent of Main Street Alliance.
