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MicroCap Small Business Investing Act of 2021

Introduced: May 20, 2021 Introduced by: Hickenlooper, John W. Democratic · Colorado See on congress.gov
 Everywhere this bill has been 4 steps
Introduced
In committee
Reported out
Passed House
Passed Senate
To President
Became law
Oct 27, 2021
Committee on Small Business and Entrepreneurship. Hearings held.
Jun 9, 2021
Committee on Small Business and Entrepreneurship. Hearings held.
May 20, 2021
Read twice and referred to the Committee on Small Business and Entrepreneurship.
May 20, 2021
Introduced in Senate
 Plain-English summary Congressional Research Service

MicroCap Small Business Investing Act of 2021

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.

What's happening now October 27, 2021

Committee on Small Business and Entrepreneurship. Hearings held.

 Committees of jurisdiction 1