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Access to Capital
One of the top priorities for entrepreneurs is obtaining the capital they need to start or expand their business. The Committee on Small Business and Entrepreneurship is focused on creating more opportunities for Americans to start and grow businesses of their own. The Committee oversees the Small Business Administration's loan and venture capital programs which help entrepreneurs access financing they aren't able to get through traditional channels. The 7(a) loan program provides the largest source of long-term working capital to small businesses in this country. The 504 loan program uses non-profit entities known as Certified Development Companies to provide long-term loans for fixed assets such as land, buildings and equipment. The microloan program - which proportionally helps more women and minorities than other loan programs - provides loans of $35,000 or less to entrepreneurs. The Committee also oversees the Small Business Investment Company (SBIC) Program, which provides venture capital financing to small firms. The Small Business Administration partners with the private firms, which the government backs through long-term loans so that they can leverage the money of private investors to provide small businesses with capital to grow their business and create jobs. SBICs differ from traditional venture capital firms in that they make smaller deals, between $250,000 and $5,000,000, and spread their investments more broadly around the country and a bigger variety of industries. The Committee has passed bipartisan bills to expand and improve all of these programs.
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