H.R. 6342 · 116th Congress
SBIC Capital Infusion Act of 2020
- Stage
- In committee
- Sponsor
- Sharice Davids
- Introduced
- 2020-03-23
- Latest action
- 2020-03-23 · Introduced in House
Summary
SBIC Capital Infusion Act of 2020
This bill provides economic assistance to small businesses affected by COVID-19 (i.e., coronavirus disease 2019), and it reestablishes the New Markets Venture Capital Program.
Specifically, the bill provides additional leverage for small business investment companies (SBICs) by requiring the Small Business Administration (SBA), when calculating the maximum amount of outstanding leverage made available to SBICs, to exclude a certain amount of outstanding leverage to small businesses affected by COVID-19. Any excluded amounts must be used solely for working capital purposes.
The bill also reestablishes the New Markets Venture Capital Program, through which the SBA, in partnership with investment companies, encourages developmental venture capital investment in small businesses located in low-income areas.