By SBIA | March 7, 2018
SBIA’s BDC Council is pleased to announce that the bipartisan BDC Modernization Bill has received the endorsement of the National Federation of Independent Business (NFIB).
Introduced by Senators Dean Heller (R-NV) and Joe Manchin (D- WV), the Small Business Credit Availability Act (S. 2324 creates) a modern regulatory framework for BDCs consistent with other operating companies. The bill allows the BDC industry to provide billions of dollars in additional growth capital to small and mid-sized American companies.
In its endorsement, NFIB described BDCs as key sources of capital:
BDCs are key sources of capital for many small businesses, and, in many cases, an alternative to acquiring credit from a large bank. Research indicates that small business owners whose primary financial institution is a large bank have more difficulty acquiring credit than those utilizing smaller banks, and the number of small banks is declining. S. 2324 will allow BDCs to free up capital, which can be used to service the needs of small businesses.
According to the NFIB’s Small Business Optimism Index, a record number of small business owners say that now is a good time to expand. Allowing BDCs to deploy more capital provides small businesses a funding option that may not have been available to them.
Small businesses benefit when there is competition for their business. This legislation will provide small businesses another tool to help them expand and grow the economy. NFIB looks forward to working with you to protect small businesses in the 115th Congress.