Davids Continues Oversight of Small Business Administration Program as Chair of Subcommittee
Today, Representative Sharice Davids continued oversight of a federal program that finances small, early-stage startups in her role as Chair of the Small Business Subcommittee on Economic Growth, Tax, and Capital Access. She spoke with program participants, including local firm Holleway Capital Partners, on recent improvements to the program as she pushed for further efforts to improve diversity and increase efficiency.
The SBA's Small Business Investment Company (SBIC) program was created by Congress in 1958. It has financed such companies as Apple, Tesla, and FedEx—but in the past, it has been marked by delays and lack of resources, failing to live up to its promise of bridging the gap between venture capital and small, high-growth businesses.
WATCH Davids speak with Holly Huels of Holleway Capital Partners, which has locations in St. Louis, MO and Overland Park, KS, about supporting manufacturers:
The SBIC program has provided small businesses with over $100 billion in capital since its inception but has faced consistent shortcomings in diversity. SBIC lending to minority-owned small businesses has stayed static since 2007, and in 2020, SBICs only made around 5% of their total financing to minority-owned small businesses—with even less to businesses owned by women and veterans.
"If we're going to actually deliver needed capital to small businesses, particularly manufacturers and minority-owned businesses, we need to be conducting proper oversight to ensure these programs are effective," said Davids. "I'm going to continue using my position as chair to listen to local businesses who work daily with federal programs like SBIC, so that we can improve those resources and ensure small businesses have the tools they need to thrive."
The Small Business Committee passed a section of the House budget package earlier this year which included $9.5 billion for the SBIC program to provide capital for underserved markets and small manufacturers. Davids pushed for this expansion to small manufacturers, so that they can access the financing they need to succeed. She also introduced the SUPPLIES Act earlier this year, inspired by the story of a local manufacturer in Lenexa. That bill would promote manufacturing of personal protective and medical equipment at small and medium manufacturers here at home.