Congressman Sherman’s Bipartisan Access to Small Business Investor Capital Act Passes House Financial Services Committee

WASHINGTON, D.C. – On May 20th, the House Financial Services Committee voted to advance Congressman Brad Sherman’s (CA-32) bipartisan Access to Small Business Investor Capital Act, which he led along with Congressman Bill Huizenga (R-MI), Congressman Andrew Garbarino (R-NY), and Congresswoman Janelle Bynum (D-OR), clearing the way for its consideration on the House floor. 

The Access to Small Business Investor Capital Act makes a technical correction to a federal securities rule allowing Business Development Companies (BDCs) to access additional capital to invest in America’s small and medium sized businesses. Business development companies play a vital role in supporting small businesses around the nation who otherwise would be unable to access capital to grow their businesses. 

The most important thing that our financial institutions and capital markets do is provide capital for businesses, particularly small, medium-sized, and growing enterprises. These businesses are the engine of our economy, driving innovation, job creation, and regional economic development in ways that benefit every community. This bipartisan legislation will open the door for more investment in BDCs, thereby unlocking more capital for small and mid-sized businesses across the country. Importantly, it does so without rolling back investor protections or weakening existing SEC oversight.

“I’m pleased that the House Financial Services Committee passed this bill with broad bipartisan support, clearing the way for a vote by the full House,” said Congressman Brad Sherman. “I thank Chairman Hill and Ranking Member Waters for their assistance in advancing this legislation and urge House Republican leadership to swiftly bring it to the floor so that America’s small businesses can access the capital they need to grow and succeed.”

Senator David McCormick (R-PA) and Senator Angela Alsobrooks (D-MD) have also recently introduced an identical version of Congressman Sherman’s bill in the Senate signaling bipartisan bicameral support. 

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