MicroCap Small Business Investing Act of 2023

MicroCap Small Business Investing Act of 2023

This bill authorizes the Small Business Administration (SBA) to issue up to ten Small Business Investment Company (SBIC) licenses each year to certain applicants. An SBIC is a privately owned company, licensed and regulated by the SBA, which invests in small businesses through debt and equity.

A license issued under the bill must be awarded to an applicant

• that would otherwise be issued a license except that the management of the applicant does not satisfy certain qualification requirements such as investment experience;
• where the fund managers have a documented record of successful business experience, a record of business management success, or knowledge in the particular industry or business in which the investment strategy is being pursued; and
• that will make at least 25% of its investments in specified areas and businesses (e.g., low-income communities, businesses owned or controlled by individuals in underserved communities, and rural areas).

The SBA must prioritize applicants that are located in states with fewer licenses and establish a streamlined application process for those licenses.

Bill 118 s 1157, also known as the MicroCap Small Business Investing Act of 2023, is a piece of legislation currently being considered by the US Congress. The main goal of this bill is to provide support and incentives for small businesses, particularly those in the microcap sector, to access capital and grow their operations.

One key provision of the bill is the creation of a new regulatory framework specifically tailored to the needs of microcap businesses. This framework aims to streamline the process for these small companies to raise capital through public offerings, making it easier for them to access the funding they need to expand and create jobs.

Additionally, the bill includes measures to increase transparency and accountability in the microcap market, in order to protect investors and ensure the integrity of the financial system. This includes requirements for companies to disclose more information about their operations and financial health, as well as provisions to crack down on fraud and market manipulation. Overall, the MicroCap Small Business Investing Act of 2023 is designed to support the growth and success of small businesses in the US, particularly those in the microcap sector. By providing them with greater access to capital and a more supportive regulatory environment, the bill aims to help these companies thrive and contribute to the overall strength of the economy.