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house Bill H.R. 4111

Should Small Business Investment Companies Focus on Underserved Areas?

Argument in favor

The Small Business Administration’s SBIC program helps speed the development of small businesses across the country, and it’d be wise to focus such efforts on underserved areas.

Jennifer's Opinion
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05/08/2018
The Small Business Administration’s SBIC program helps speed the development of small businesses across the country, and it’d be wise to focus such efforts on underserved areas.
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SneakyPete's Opinion
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05/08/2018
It’s time that businesses of all sizes to move into areas, the inter cities as example, to bring services of all types, to the folks thst need them.
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Darby's Opinion
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05/08/2018
This is a great idea if you want to boost the economy and I am all about posting the economy.
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Argument opposed

The Small Business Administration shouldn’t place an emphasis on SBIC applications from underserved areas to spur the growth of small businesses in that area.

Larry's Opinion
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05/08/2018
Small businesses should be free to pursue their ambitions wherever they like. Underserved is a subjective term and does not deserve to be placed in law.
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Tooluser1's Opinion
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05/08/2018
Government has NO place deciding where or whom "deserves" to start a business beyond credit worthiness and business plan viability.
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Jacob's Opinion
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05/09/2018
Sure, it sounds nice to say that underserved communities should get more attention and investment, but that shouldn’t be by rule of the federal government. If investors want to focus on stimulating these types of communities, they can do so by their own choice.
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What is House Bill H.R. 4111?

This bill — the Spurring Business in Communities Act of 2017 — would require the Small Business Administration (SBA) to focus on underserved areas as the Small Business Investment Company (SBIC) applications are reviewed and processed. SBIC applicants from under-licensed states and under-financed states would be exempt from full capital requirements. The SBA would be required to report annually on its progress toward increasing the geographic dispersion of SBICs.

The SBIC program was founded in 1958 as one of the many financial assistance programs available through the SBA. The SBA doesn’t directly invest into small businesses, but provides loan guarantees to qualified investment management firms with expertise in certain sectors or industries.

Impact

Small businesses and investment management firms in underserved areas; and the SBA.

Cost of House Bill H.R. 4111

A CBO cost estimate is unavailable.

More Information

In-Depth: Sponsoring Rep. Cathy McMorris-Rodgers (R-WA) introduced this bill to encourage investment in small businesses in underserved parts of the country:

“Small businesses are the backbone of our economy. They provide 55 percent of jobs in America, and account for 1.3 million employees in Washington state alone. SBICs serve an important function in providing capital and support to these small businesses, but there are currently none here in Washington state. Instead, SBICs are primarily located in large urban and finance centers of the U.S., which only further concentrates lending and investment activity. This legislation will change that by easing the process for SBICs to form in our state, invest in people in our community, grow our local economy, and create jobs.”

Companion legislation has been introduced in the Senate by Sen. Marco Rubio (R-FL) who added:

“I want Florida’s entrepreneurs and investors to be able to stay and invest here in Florida’s economy, instead of feeling like they are being shoe-horned into Wall Street and Silicon Valley jobs away from home. Our bill will help reduce America’s investor gap by removing regionally biased obstacles investors face when applying to become a licensed Small Business Investment Company.”


Media:

Summary by Eric Revell

(Photo Credit: fotostorm / iStock)

AKA

Spurring Business in Communities Act of 2017

Official Title

To amend the Small Business Investment Act of 1958 to improve the number of small business investment companies in underlicensed States, and for other purposes.

bill Progress


  • Not enacted
    The President has not signed this bill
  • The senate has not voted
  • The house Passed May 8th, 2018
    Passed by Voice Vote
      house Committees
      Committee on Small Business
    IntroducedOctober 24th, 2017

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    The Small Business Administration’s SBIC program helps speed the development of small businesses across the country, and it’d be wise to focus such efforts on underserved areas.
    Like (9)
    Follow
    Share
    Small businesses should be free to pursue their ambitions wherever they like. Underserved is a subjective term and does not deserve to be placed in law.
    Like (6)
    Follow
    Share
    It’s time that businesses of all sizes to move into areas, the inter cities as example, to bring services of all types, to the folks thst need them.
    Like (3)
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    Share
    This will help rural communities.
    Like (2)
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    Government has NO place deciding where or whom "deserves" to start a business beyond credit worthiness and business plan viability.
    Like (1)
    Follow
    Share
    Sure, it sounds nice to say that underserved communities should get more attention and investment, but that shouldn’t be by rule of the federal government. If investors want to focus on stimulating these types of communities, they can do so by their own choice.
    Like
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    Share
    It is imperative that all people pay attention to the needs of the poor, underprivileged in hard-to-reach areas. Solutions that come from small businesses who know and can relate to the needs the best should be given a chance to succeed.
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    This is a great idea if you want to boost the economy and I am all about posting the economy.
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    I think under served can be defined. Acinities where the job to worker ratio is low seems like a good place to focus money. Small towns, areas of cities where there are few jobs and services, etc. Access to work and education drives down crime and improves lives.
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    Who's to say what "underserved" entails?
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    So anywhere that people decide to concentrate in their numbers, should be served for arbitrarily high population density, at the expense of everyone else, no matter what? Maybe there should be some collective decision about how the population is distributed over the land. Maybe there are even some land areas that should be abandoned.
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