H.R.2364 – Investing in Main Street Act of 2017

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Week ending July 28, 2017

H.R.2364 – Investing in Main Street Act of 2017

Brief

To help small businesses in obtaining venture capital and private equity, the SBA administers the SBIC program, which utilizes a privately-owned and SBA-licensed model.

H.R. 2364, the “Investing in Main Street Act of 2017,” increases the amount of capital and surplus that a financial institution and federal savings association can invest in an SBIC from 5 percent to 15 percent.’

To that end the bill requires financial institutions and federal savings associations to be approved by their federal regulator prior to investing more than 5 percent.

 (Full text of H.R. 2364 at congress.gov)

Sponsor:  Rep. Chu, Judy [D-CA-27] (Introduced 05/04/2017)

Status: Passed House /

VOTES and FLOOR ACTION

HOUSE

On Passage: On motion to suspend the rules and pass the bill Agreed to by voice vote

House Amendments:

Motion to recommit:

Text of the motion:

SENATE

On Passage:

Procedural Actions:

Senate Amendments:

COST AND IMPACT

Cost to the taxpayersCBO estimates that implementing the bill would have no significant effect on the administrative costs of operating the SBIC program because of the limited number of banks that would probably be affected.

Pay-as-you-go requirements:  Pay-as-you-go procedures apply because enacting the bill would increase direct spending by the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency and reduce revenues remitted by the Federal Reserve to cover administrative costs of approving proposed investments that exceed 5 percent of certain bank or savings associations’ capital and surplus. However, CBO estimates that any such costs and revenue loss would be insignificant.

Regulatory and Other Impact: H.R. 2364 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would not affect the budgets of state, local, or tribal governments.

Dynamic Scoring:   CBO estimates that enacting H.R. 2364 would not significantly increase net direct spending or on-budget deficits in any of the four consecutive 10-year periods beginning in 2028

Tax Complexity:  Not applicable to this bill.

Earmark Certification:  Data not available

Duplication of programs: Pursuant to clause 3(c) of the rule XIII of the Rules of the House, no provision of H.R. 2364 establishes or reauthorizes a program of the federal government known to be duplicative of another federal program.

Direct Rule-Making:  Pursuant to clause 3(c) of rule XIII of the Rules of the House, H.R. 2364 does not direct any rulemaking

Advisory Committee Statement: H.R. 2364 does not establish or authorize the establishment of any new advisory committees as that term is defined in the Federal Advisory Committee Act, 5 U.S.C. App. 2.

Budget Authority: Data not available

Constitutional Authority:   Assumed.

 

More Bill Information:

 

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