Senator Rick Scott has joined a group of senators to introduce the Merchant Banking Modernization Act, which aims to expand access to capital for small businesses in rural areas. The proposed legislation would change the holding period for merchant banking investments from 10 years to 15 years.
The bill is cosponsored by Senators Mike Rounds, Tim Scott, Thom Tillis, Bill Hagerty, Kevin Cramer, Steve Daines, Markwayne Mullin, Ted Cruz, and John Cornyn.
“Small businesses are the backbone of our economy, and as a former business owner, I understand firsthand how businesses are critical to the success of our economy, to creating jobs, and to sustaining everyday life. This legislation makes a common-sense change to help give investors the confidence and flexibility to support entrepreneurs who need more time to grow and stabilize — especially in rural and underserved communities – to support job growth and long-term economic prosperity,” said Senator Rick Scott.
Senator Mike Rounds commented on the challenges faced by entrepreneurs in rural states: “Access to capital remains a barrier for entrepreneurs to start up and grow their business, especially in rural states like South Dakota. Small businesses, a central pillar of our state economy, make up 99 percent of the businesses in South Dakota and employ 58 percent of our workforce. The Merchant Banking Modernization Act seeks to bridge the financial gap between small, often rurally-based, businesses that are not privy to the type of investments larger, more established companies are able to access.”
Senator Tim Scott added: “Small businesses are the backbone of our economy, both in my home state of South Carolina and across the United States, but they need access to capital to grow and support their employees. This bill will support investment in local businesses and help ensure more Americans have a shot at the American Dream.”
Highlighting North Carolina’s economic landscape Senator Thom Tillis stated: “Small businesses drive job creation and economic growth in North Carolina, but too often they struggle to secure the long-term capital needed to expand. By extending the merchant banking investment window, this legislation will help attract investment in businesses that are vital to our state. I’m proud to support this effort to strengthen North Carolina’s economy and expand opportunities for entrepreneurs.”
Senator Steve Daines spoke about Montana’s reliance on small enterprises: “Small businesses are the cornerstone of Montana’s economy and represent 99 percent of all businesses in our state. As the son of a contractor, I’ve seen firsthand how difficult it can be to keep a company flourishing, and we need to do everything we can to help small businesses grow and remove unnecessary barriers to accessing capital. I’m proud to join my colleagues to introduce this bill which will support investment in small and rural businesses and unleash our economy.”
With his own experience as an entrepreneur Senator Markwayne Mullin remarked: “With over twenty-five years of firsthand experience as a business owner I know just how necessary access to capital is to grow your operation. By expanding the holding period,the Merchant Banking Modernization Act will boost small businesses in Oklahoma and across the country.”
Senator John Cornyn noted benefits for Texas: “By extending the holding period for merchant banking investments,this legislation would help Texas small businesses access the capital neededto growand thrive,and I’m proudto support it.”
