Mr. KERRY . Mr. President, I am pleased to join my colleague, Senator Bond, in introducing the Small Business Investment Company, SBIC, Amendments Act of 2001. I am a strong supporter of this program, and am mystified and frustrated by efforts to eliminate funding for and restrict the investment capacity of a program that does so much good for the economy.
Last year, the Agency financed 4,600 venture capital deals, which invested $5.6 billion in our fastest-growing small businesses. In spite of this impressive track record, the President's budget, and the House appropriators, have eliminated funding for the SBIC participating securities program and reduced the program level for the debenture program, which requires no appropriations. Why eliminate funding and restrict activity for the SBIC programs when venture capital has all but dried up? As I have said so many times, the programs at SBA are a bargain. For very little, taxpayers leverage their money to help thousands of small businesses every year and fuel the economy.
In the SBIC participating securities program last year, taxpayers spent $1.31 for every $100 leveraged for investment in our fastest growing companies--companies like Staples, Callaway Golf, Federal Express, and Apple computers.
The main purpose of this Act is to adjust the fees charged to Participating Security SBICs from one percent to 1.28 percent. The change is necessary because the demand for the SBIC program is growing beyond what is possible to fund solely through appropriations.
The National Association of Small Business Investment Companies, NASBIC, testified before both the Senate and House Committees on Small Business in favor of increasing the program level from $2 billion to $3.5 billion.
This legislation raises fees just enough to make up the difference between appropriations of $26.2 million, which is level funding, and the $65.4 million that would be needed to provide a $3.5 billion program level. This approach is consistent with the Kerry /Bond amendment to the Budget Resolution that was agreed to in the Senate by voice vote in April, and retained in the final budget resolution.
The other changes strengthen the oversight and authority of SBA to take action against bad actors and protect the integrity of the program.
Last year, the Agency financed 4,600 venture capital deals, which invested $5.6 billion in our fastest-growing small businesses. In spite of this impressive track record, the President's budget, and the House appropriators, have eliminated funding for the SBIC participating securities program and reduced the program level for the debenture program, which requires no appropriations. Why eliminate funding and restrict activity for the SBIC programs when venture capital has all but dried up? As I have said so many times, the programs at SBA are a bargain. For very little, taxpayers leverage their money to help thousands of small businesses every year and fuel the economy.
In the SBIC participating securities program last year, taxpayers spent $1.31 for every $100 leveraged for investment in our fastest growing companies--companies like Staples, Callaway Golf, Federal Express, and Apple computers.
The main purpose of this Act is to adjust the fees charged to Participating Security SBICs from one percent to 1.28 percent. The change is necessary because the demand for the SBIC program is growing beyond what is possible to fund solely through appropriations.
The National Association of Small Business Investment Companies, NASBIC, testified before both the Senate and House Committees on Small Business in favor of increasing the program level from $2 billion to $3.5 billion.
This legislation raises fees just enough to make up the difference between appropriations of $26.2 million, which is level funding, and the $65.4 million that would be needed to provide a $3.5 billion program level. This approach is consistent with the Kerry /Bond amendment to the Budget Resolution that was agreed to in the Senate by voice vote in April, and retained in the final budget resolution.
The other changes strengthen the oversight and authority of SBA to take action against bad actors and protect the integrity of the program.
