28 Oct BPC Action Applauds the Bipartisan, Bicameral Rural Capital Access Act in Economics and Finance
BPC Action commends the bipartisan collaboration of Reps. David Joyce (R-OH) and Jared Golden (D-ME) and Sens. John Thune (R-SD), Jeanne Shaheen (D-NH) and Deb Fischer (R-NE) to introduce H.R. 5521/S. 1058, the Rural Capital Access Act.
Federal pandemic relief programs disbursed roughly $1 trillion to small businesses in 2020-21. While these efforts, including the U.S. Small Business Administration’s Paycheck Protection Program, helped many small businesses, they also highlighted preexisting and longstanding gaps in small business financing. Venture capital, one important source of investment for growing small businesses, is heavily concentrated, for example, in just a few major metropolitan areas.
These bills seek to make more capital available to rural small businesses by expanding federal leverage to small business investment companies, improving participation in the U.S. Department of Agriculture’s Rural Business Investment Company program, and establishing an interagency working group on capital access in rural areas.
SBICs have proven to be effective in supporting entrepreneurial growth across the country, and they have the potential to have even more impact. While the SBA is considering proposed changes to the SBIC program, BPC Action encourages policymakers to continue to explore ways in which the promise of SBICs can be further enhanced. Small businesses employ millions of Americans and enhance our nation’s ability to compete globally. Ensuring small businesses have access to the capital they need to grow is an economic priority, and BPC Action is committed to seeing this legislation enacted into law.