(Washington D.C.) The House of Representatives passed legislation co-authored by U.S. Congressman Sam Graves today, aimed at helping small businesses get the investment capital necessary to start and grow their business. The Small Business Investment Expansion Act of 2007, H.R. 3567, would help small technology companies bridge the gap between research and having a product on the market.

 

“This change is essential for many small businesses that are trying to do big things,” said Graves, a member of the Small Business Committee. “We need to make it easier for small technology companies who are trying to make the leap from research to the market-place.”

 

The bill would change a 1958 law that is now out of date. Under the old legislation, the SBA program is for independently owned and operated businesses with no more than 500 employees, including all employees of affiliates to qualify for the program. In today’s world, many capital intensive small businesses need outside investment to continue their research, but are penalized by having another companies employees counted against the cap.

 

“These types of businesses are capital intensive and could not survive without an infusion of venture capital,” said Dr. Gary Clapp, the President of the Institute for Applied and Life Sciences at Missouri Western State University. “Changing the rule allows small businesses to get the outside help they need to survive while they are in the incubation stage. This change is another tool in the toolbox for small companies that need help.”

 

The Graves-Altmire legislation also updates the new markets venture capitol (NMVC) program. The NMVC program is focused on the needs of low-income communities is designed to promote economic development and create jobs.This legislation also expands the program and provides additional incentives to invest in small manufacturing companies.

 

“We have to make America the best place in the world to do business,” said Graves. “While these are small companies today, they have the potential to find the next cure for cancer, bio-terrorism, heart disease and many other common ailments. They also have the ability to create good-paying jobs in the Sixth Congressional District.”

 

Graves’ Sixth Congressional District includes both St. Joseph, with a booming animal science corridor, and a part of the Kansas City metro area, which is home to 200 bioscience companies that employ over 20,000 employees.

 

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