Following is the full text of letter from the Honorable Olympia J. Snowe [R-ME], Chair of the United States Senate Committee on Small Business & Entrepreneurship, to the members of NASBIC, read at the association's 45th Annual Meeting in Washington, DC, on October 27, 2003:

Senator Olympia J. Snowe [R-ME], Chair of the U.S. Senate Committee on Small Business & Entrepreneurship

Dear Friends:

As you begin your Annual Meeting, I congratulate you on your efforts to foster America's small businesses and its innovative entrepreneurs. The National Association of Small Business Investment Companies is a tremendous resource for small businesses and entrepreneurs across the nation. I appreciate your invitation to attend today's events, and I regret that prior obligations prevent me from participating.

Small Business Investment Companies are a crucial part of our economy, and they have consistently made a tremendous contribution to our country. I am particularly pleased that, as other sources of venture capital have become more scarce over the last few years, SBICs have continued to assist small businesses to start and grow. SBICs have made more than 16,000 investments in small businesses since the start of Fiscal Year 1999, with a total value of almost 17 billion dollars. This critical long-term capital for small businesses has led to the creation and retention of approximately 481,000 jobs during this period.

An especially important issue in today's economy is the ability of America's small manufacturers to overcome the obstacles that the current economic conditions present. In that regard, I am pleased to note that during Fiscal Years 1998 to 2002, SBICs made 31.8% of their investments in manufacturing companies, for a total amount of 6.4 billion dollars. Those investments are critical to our goal of revitalizing the manufacturing sector of our economy.

This year's Portfolio Company of the Year, NetSpend Corp., of Austin, Texas, is a shining example of a successful small business and the essential role of SBICs. NetSpend's innovative business model and disciplined management are excellent examples of successful small business strategies. Businesses such as NetSpend provide encouragement that small businesses will continue to be effective forces for growth in the American economy. I congratulate the company and its management for a job well done.

I would also like to congratulate John Freidenrich, the outgoing Chairman of NASBIC's Board of Governors, for all of his hard work on behalf of America's small businesses. In addition, I am delighted to welcome the incoming Chairman of the Board of Governors, David Coit. It is indeed a pleasure to have a fellow Mainer as NASBIC's new Chairman. As Founder and Managing Director of North Atlantic Capital Corporation, in Portland, Maine, David has contributed greatly to the economic well-being of Maine and of many other states. North Atlantic Capital Corporation, like so many other SBICs, provides crucial venture capital to small businesses that generate growth for our economy and jobs to build our communities. I look forward to working with David and with the other members of NASBIC to provide further opportunities for small businesses through venture capital.

Again, thank you for the invitation, and I send my best wishes for a productive Annual Meeting and a successful year for all of NASBIC's members.

Sincerely,

[signed]

Olympia J. Snowe
Chair