The sponsor of the legislation, Rep. Steve Chabot (R-OH), noted that the Small Business Investment Company program was created in 1958 and provides leverage to highly regulated private investors. These private investment funds are called small business investment companies, which raise private capital from institutions like banks and pension funds, and also borrow Federal capital to invest in promising small businesses. As required by law, 100 percent of the money is invested in US companies. He also said that the legislation will assist proven fund managers by allowing them to assess additional funds that they can use to assist small businesses. Cong. Record, Dec. 19, 2012, H6838-6839.
In addition to having bipartisan congressional support, the legislation has the support of the Small Business Investor Alliance, the association that represents small business investment companies, as well as the support of the U.S. Chamber of Commerce Additionally, the Obama Administration recommended this provision as a part of the President's Startup