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WASHINGTON– Today, the House Small Business Committee held a hearing on how private investment, including through the SBA’s Small Business Investment Company (SBIC) program, supports small business growth.

Ranking Member Nydia Velázquez (D-NY) focused on the need to ensure private capital is accessible to all entrepreneurs—not just those in major markets or with existing networks.

“Financing and access to credit is a central component to starting and growing a small business—and the toughest challenge our Main Street firms face,” said Velázquez. “The SBA’s SBIC program is a responsible and effective method for small businesses and startups to partner with private equity investors.”

Since its inception, the SBIC program has deployed over $130 billion to small businesses. In FY2024 alone, it backed more than 1,100 companies with $7.2 billion in financing. Under the Biden-Harris Administration, the program has expanded to include new tools like the Accrual and Reinvestor SBICs to reach more diverse businesses and geographies.

During the hearing, Velázquez emphasized that more work must be done to combat persistent inequities in capital access.

“Black and Hispanic female entrepreneurs received less than one percent of all venture capital investments in 2020,” Velázquez said. “Congress must work to close these gaps and ensure private markets are serving all small businesses—not just a select few.”

Witnesses also testified about the importance of SBICs in supporting entrepreneurs beyond just providing capital.

“SBICs are making a difference. They are driving capital to regions where it likely would not have been deployed. These funds help entrepreneurs and small businesses access capital,” said Anthony Cimino, Vice President & Head of Public Policy at Carta. “But importantly, these SBICs are often more than an investment. They are strategic and operational partners, helping these businesses grow with their capital and their partnership.”

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