On July 11, 2013, U.S. Senator Tammy Baldwin (D-Wis.) introduced the Small Business Innovation Act of 2013 to the U.S. Senate. The bill is intended to boost small business job creation and economic growth by providing startup businesses with the capital necessary to create jobs and grow their companies. This bill would allow the Small Business Administration (SBA) to provide up to $4 billion in leverage to Small Business Investment Companies (SBICs).
The legislation is primarily targeted at growth industries, including biotechnology, clean energy, advanced manufacturing, digital and information technology, environmental and agricultural technology, and water technology. Startup companies that have received federal merit-based grants will receive preference under the bill.
The private equity practice group at McGuireWoods LLP is dedicated to keeping clients advised of new legislative and business developments as they occur. If you have any questions regarding these issues, please feel free to contact Mark A. Kromkowski (312.849.8170), your primary attorney at McGuireWoods LLP or any of the authors.