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Micro-SBIC and Emerging Managers Program Act of 2021
12/31/2022, 8:59 AM
Summary of Bill HR 5225
The bill outlines specific criteria for eligibility for the program, including requirements for small businesses to be considered for investment. It also establishes guidelines for the selection and oversight of emerging managers who will participate in the program.
Additionally, the bill includes provisions for the allocation of funds to support the program, as well as reporting requirements to ensure transparency and accountability in the use of these funds. The goal of the Micro-SBIC and Emerging Managers Program Act of 2021 is to promote economic growth and job creation by providing targeted support to small businesses and emerging managers in the United States.
Congressional Summary of HR 5225
Micro-SBIC and Emerging Managers Program Act of 2021
This bill establishes programs for the Small Business Administration (SBA) to (1) issue certain applicants a license to operate a Small Business Investment Company (SBIC) and (2) provide assistance to SBICs operated by emerging managers. An SBIC is a privately owned company, licensed and regulated by the SBA, which invests in small businesses through debt and equity.
First, the bill lowers the threshold to receive an SBIC license to include applicants that hold private capital of at least $5 million and have significant business expertise relevant to the applicant's investment strategy. The bill also sets limits on the amount of financing these SBICs may receive from the SBA.
Additionally, the bill allows managers with substantial experience operating SBICs to enter an agreement, approved by the SBA, to provide guidance and assistance to SBIC applicants that are managed by at least two emerging managers who have an investment record of less than 10 years or who focus on underserved markets.
