WASHINGTON – Senators Ruben Gallego (D-AZ), Todd Young (R-IN), Jim Risch (R-ID), and Tammy Duckworth (D-IL) introduced the Investing in Main Street Act to increase investment in small businesses by permitting banks to invest up to 15 percent of their capital in Small Business Investment Companies (SBIC).
“Starting a small business gives those willing to work hard a shot at achieving the American dream. But without access to capital, it’s nearly impossible to get a small business off the ground,” said Senator Gallego. “This commonsense, bipartisan bill helps unlock more capital for Main Street, empowering small businesses across the country to grow, innovate, and create jobs. I’m proud to introduce it with my colleagues.”
In 1958, the Small Business Administration launched the SBIC program to facilitate and regulate investment from privately owned companies to U.S. small businesses. This program has successfully allowed more small businesses across America to expand their competitive edge, create more jobs, and contribute to the local economy. Over the last 5 years, SBICs invested over $574 million in 116 small businesses throughout Arizona, supporting thousands of jobs.
Full text of the legislation can be found HERE.
“The Small Business Investment Company program has provided critical support to countless Hoosier small businesses,” said Senator Young. “Our legislation will help spur further investment in innovative startups and unlock capital for existing, high-growth small businesses across America.”
“Idaho small businesses fuel our economy, employ our friends and family, and are the lifeblood of our communities,” said Senator Risch. “The Investing in Main Street Act supports our Gem State entrepreneurs’ access to early-stage capital by allowing banks to invest more into Small Business Investment Companies.”
“Small businesses are the backbone of our economy—when they grow, our economy grows. Yet too many small business owners have trouble accessing affordable capital to grow their business and create new jobs in their communities,”said Senator Duckworth. “I am proud to join Senators Young, Risch and Gallego in introducing this bipartisan legislation to help get more dollars in the hands of small business owners in Illinois and across our nation.”
The legislation is supported by the Arizona Regional Economic Development Foundation, Prestamos CDFI, Chicanos por la Causa, Arizona CDFI Network, Southern Arizona Hispanic Chamber of Commerce, Main Street Alliance, Small Business Majority, and Small Business Investor Alliance (SBIA).
“As a career economic development professional, I always look for ways to help small businesses thrive. Expanding the pool of investment capital available for small businesses is a no-brainer. This bill is exactly the shot in the arm that American small businesses need,” said Mignonne Hollis, Executive Director, Arizona Regional Economic Development Foundation.
“At Prestamos, an award-winning CDFI that has been serving the small business community for over 25 years, we see every day how access to capital can change the trajectory of a small business. The Investing in Main Street Act is a common-sense, nonpartisan step that will help unlock more funding for entrepreneurs—especially those in communities that are too often overlooked,” said Jose Martinez, President of Prestamos CDFI and Executive Vice President of Chicanos por la Causa. “By lifting outdated limits on bank investments in SBICs, this bill creates more opportunities for small businesses to grow, create jobs, and strengthen the economy. We appreciate Senator Gallego’s leadership on this and are proud to support it.”
“The Arizona CDFI Network supports the Investing in Main Street Act as an important step toward strengthening the capital ecosystem for small businesses. By aligning statutory limits with existing banking regulations, this legislation will empower more financial institutions to invest in SBICs—creating new avenues for small business financing, job creation, and innovation,” said Amber Cordoba, Co-Chair, Arizona CDFI Network. “We are grateful to Senator Gallego for championing policies that expand access to capital and fuel inclusive economic growth across Arizona and beyond.”
“Small businesses are the backbone of our economy, and in Southern Arizona, they are at the heart of our communities. The Investing in Main Street Act is a commonsense, bipartisan solution that opens the door for more capital to reach entrepreneurs when they need it most,” said Rob Elias, President and CEO, Southern Arizona Hispanic Chamber of Commerce. “By allowing banks to invest more in Small Business Investment Companies, this bill helps fuel innovation, job creation, and economic resilience—especially in underserved regions like ours. We support this effort to empower Main Street and strengthen our nation’s future.”
“Increasing access to capital for small businesses to grow is essential to build an economy that works not just for large corporations and the well-connected. The Main Street Act is designed to allow lenders to include a larger portion of their lending portfolio to support those small businesses that need larger investments than may be normally available through commercial lending,” said Richard Trent, Executive Director, Main Street Alliance. “Without the Main Street Act, many businesses may otherwise not receive the volume of investment necessary to make capital investments, ramp up hiring, or open up new markets for their products. While there is more to be done, this is a good step in the right direction to expand capital access for fast-growing, promising small businesses.”
“Legislation that creates more opportunities for small business owners to access the capital needed to start and grow a business would be a significant win for America’s entrepreneurs,” said John Arensmeyer, Founder and CEO, Small Business Majority. “Our research found that just one-third of small business owners who sought funding in the last year were able to secure it, and less than one-third said that they received sufficient funding. Until we address this shortfall between need and availability in small business lending, many of our nation’s small firms will struggle to get ahead.”
“This bill offers a smart solution to an accidental regulatory barrier that limits investment in American small businesses,” said Brett Palmer, President, Small Business Investor Alliance. “By updating outdated regulations, this legislation will help funnel vital funding into our nation’s small businesses – economic engines that drive two-thirds of U.S. job creation. We thank Senator Young, Senator Gallego, Senator Risch and Senator Duckworth for their leadership and urge swift Senate passage.”
7/10/25