Legislative Representation:
NASBIC-PAC

The National Association of Small Business Investment Companies Political Action Committee, "NASBIC-PAC," is a federally registered political action committee established in 1979. Its purpose is to solicit voluntary contributions from member company executives and, in turn, provide financial assistance to candidates for federal elective office who are—or are likely to be—supporters of the SBIC program in general or supporters of positions on other issues or initiatives important to NASBIC's SBIC members. In this era of increasingly sophisticated campaigns and stringent lobbying rules, money is more important than ever. By pooling individual political donations into one fund, NASBIC-PAC can have a greater impact in making our voices heard on Capitol Hill. NASBIC-PAC is a distinct legal entity and not a division of NASBIC. However, as permitted by FEC rules, NASBIC contributes the space, personnel, and logistical support necessary to operate NASBIC-PAC.

Why is NASBIC-PAC important to NASBIC Members?

The SBIC program requires the passage of legislation on an almost yearly schedule. Sometimes the legislation required is renewal of SBA's authority to run the program at all. Other times the legislation involves leverage availability or changes in the law that most NASBIC members now take for granted, but which were at one time just industry dreams. These include:

• the unfettered ability to invest in portfolio companies with non-SBIC funds;
• the availability of sufficient leverage and 5-year leverage commitments;
• the unconditional right to control a portfolio company from time of investment; and
• reduction of the minimum required period of investment from five years to one year.

Each of the achievements required specific congressional champions and, of equal importance, a general acceptance of the benefits of the SBIC program by congressional leaders and rank and file members. Without these, achieving goals that the industry now takes for granted would have been impossible. Supporting those who support the SBIC program is critical to the continuation and improvement of the program. NASBIC-PAC turns contributions into active and effective tools in that process.

Who runs the PAC?

The affairs of the PAC are directed by a subcommittee which represents a cross-section of the association's leadership. The subcommittee meets several times each year to review the records of political parties and individual candidates for federal office and to prepare and execute the year's strategy for NASBIC-PAC. The subcommittee also works closely with the NASBIC staff in fundraising for NASBIC-PAC.

How does the solicitation process work?

Contributions to NASBIC-PAC are completely voluntary and limited to $5,000 annually by federal law. Personal and partnership checks are permitted but corporate checks are not. Federal law requires NASBIC-PAC to secure a written authorization (prior approval) from members on an annual basis before soliciting them. A member company may provide this authorization to only one trade association per year. Prior approval is nothing more than an authorization which permits the PAC to solicit a corporate member and their employees.

Where do the PAC dollars go?

Every dollar NASBIC-PAC raises is used to support candidates for federal office. No PAC contributions are used to pay the administrative costs of the PAC. Contributions to NASBIC-PAC are not deductible as charitable contributions for income tax purposes.

How does a candidate receive a contribution?

When NASBIC-PAC receives an invitation to attend a Congressional member's event in Washington, D.C., it is discussed by the NASBIC staff and the association's political consultants. If a decision is made to support the candidate, an assignment is made on who will represent the association at the fundraiser and a check is issued from the PAC account. Contributions are delivered to the candidate in person and are usually accompanied by informative NASBIC support materials.

2005 NASBIC-PAC Officials and Staff

Campaign Chairman:
David Latham, Delta Venture Partners I, LP

Committee Member, NASBIC Chairman:
James Herndon, CapSource Fund, LP

Committee Member, NASBIC Chair-Elect:
Monro B. Lanier III, Hickory Venture Capital Corp.

Committee Member, Secretary/Treasurer:
Lee W. Mercer, NASBIC President

Staff Director:
Jeanette D. Paschal, NASBIC Vice President