U.S. Sens. Dean Heller, R-Nevada, and Joe Manchin, D-West Virginia, have introduced the Small Business Credit Availability Act, bipartisan legislation to modernize rules for business development companies, lenders that are critical to helping America’s small businesses grow.
Specifically, the bill would help business development companies deploy more financing capital to small and mid-size businesses.
It also would provide parity on securities offerings and related rules between business development companies and other operating companies.
This would happen by streamlining disclosure requirements and reducing burdensome, duplicative regulatory paperwork for business development companies while still ensuring that investors receive relevant and necessary disclosures.
These reforms would allow business development companies to raise capital in the same efficient manner as traditional operating companies, Heller’s office said in an announcement Jan. 18.
This would permit them to invest more of their dollars in small and mid-sized businesses, rather than utilizing funds for compliance costs on outdated securities offering rules, the announcement said.
“Congress should be doing all it can to support America’s small businesses, which account for almost half of the nation’s jobs, including roughly 428,000 in Nevada alone,” Heller said.
“The Small Business Credit Availability Act will help ensure that small business owners in Nevada and across the country have the opportunity to access more capital to grow their businesses so they can hire more workers, increase wages, and spur growth in their communities,” he said.
“BDC (business development companies) have already helped gaming, mining and entertainment businesses in Nevada, and I want more businesses to receive capital financing to grow. I’m proud to partner with Senator Manchin on this legislation and look forward to working with my colleagues to see this bill signed into law,” Heller said.
Manchin said: “Small businesses are the heart of West Virginia. The Small Business Credit Availability Act will allow these small businesses to better compete with larger companies by increasing the investments they can make in their businesses.
“Empowering our small business owners to grow their businesses is good for our West Virginia economy and good for our West Virginia families and communities,” Manchin said. “I look forward to working with Senator Heller to ensure this bill becomes law.”
Small Business Investor Alliance President Brett Palmer said that business development companies provide more than just financing.
“Their experienced leadership teams serve as a support system for entrepreneurs and business owners looking to achieve greater growth and success,” Palmer said.