Bill would boost small, rural businesses

A recently proposed U.S. Senate bill seeks to assist small businesses in rural or low-income areas by expanding access to money needed for growth and job creation. Known as the Investing in America Act, the bill, if passed, would exempt those types of small businesses and those involved in manufacturing and critical technology sectors from rules regulating the amount of government-backed capital made available for investing, according to a release from U.S. Sen. Jon Husted, R-Ohio. "Small businesses are the backbone of our economy, and Small Business Investment Company-backed businesses have generated more than 3 million new jobs over the last 20 years," Husted said. "This bill would expand access to capital for Ohio small businesses in rural and low-income regions to ensure there is a pathway to growth and prosperity for people and businesses in every corner of our state," The bill is being sponsored by Sen. John Hickenlooper, D-Colorado, and cosponsored by Sens. Roger Marshall, R-Kansas, Todd Young, R-Indiana, Christopher Coons, D-Delaware and Husted. A release from Husted's office further explains how the proposed law change would work: "The bill focuses on enhancing the role of Small Business Investment Companies, privately managed firms licensed by the Small Business Administration, that raise private capital and leverage it with Small Business Administration-backed funds to invest in American small businesses. "Currently, Small Business Investment Companies are subject to a leverage cap, which limits the amount of Small Business Administration-backed capital they can access based on how much private capital the firm has. "The Investing in All of America Act would exempt investments in rural or low-income areas, as well as those in the manufacturing and critical technology sectors, from the leverage cap. In turn, this move would enable more capital to flow to areas with limited access and support the growth of manufacturing and critical technology industries vital to U.S. competitiveness." The bill was read twice and then referred to the Senate's Committee on Small Business and Entrepreneurship, according to the information on the Congress's website.