Congresswoman Marilyn Strickland (WA-10) and Representative Adam Smith (WA-09) have introduced the Investments in Innovation Act, a new bill aimed at strengthening the Small Business Investment Company (SBIC) program and channeling more private investment toward minority-owned small businesses.
According to Strickland, the measure is rooted in a simple idea: when small businesses succeed, so do the communities around them.
“When small businesses thrive, the communities around them thrive,” Strickland said.
The proposed legislation seeks to tackle persistent disparities in access to capital by creating incentives for private investors to back businesses owned by people of color. Supporters say the bill will help close long-standing wealth gaps while promoting innovation, economic equity, and community resilience.
“Incentivizing investments in minority-owned businesses will boost local economies,” Strickland said. “It will improve the job market and build capital for business owners and investors.”
Proponents argue that expanding opportunities for minority entrepreneurs is not only a matter of fairness but also smart economics. Investing in underrepresented business owners fosters job creation, drives local economic growth, and brings new ideas into the marketplace. The bill also aims to strengthen social cohesion and increase representation among diverse entrepreneurs in sectors where they remain underfunded and underrepresented.
The Investments in Innovation Act has garnered support from advocacy organizations including the Main Street Alliance and the Small Business Majority, both of which promote equitable small business policies.
John Arensmeyer, founder and CEO of Small Business Majority, praised the proposal as a step toward leveling the playing field.
“One of the biggest challenges for small businesses is that the playing field on which they operate is uneven,” Arensmeyer said. “This is especially true for small businesses owned by women and people of color.”
Arensmeyer added that systemic underinvestment in marginalized communities continues to hold back entrepreneurs who have long faced barriers to capital.
“These under-resourced entrepreneurs sometimes need a helping hand,” he said. “Legislation that incentivizes investment where it’s needed most is exactly the kind of policy our lawmakers should get behind.”
