Bipartisan legislation was introduced in the U.S. House of Representatives last week that seeks to increase the amount of capital available to small businesses.
The Investing in All of America Act (H.R. 2066), sponsored by U.S. Reps. Dan Meuser (R-PA) and Hillary Scholten (D-MI), is targeted to help small businesses in rural or low-income areas, as well as companies involved in manufacturing and the critical technology sector.
Specifically, the bill ensures that dollars invested in rural and low-income areas, manufacturing, or the critical technology sector will not count against a Small Business Investment Company’s (SBIC) leverage cap.
SBICs leverage private sector investment with support from the Small Business Administration (SBA) to drive economic growth. These entities raise private capital, which is then matched with leverage by the SBA, allowing them to invest directly in small businesses. Importantly, the SBIC program operates without taxpayer subsidy, meaning taxpayer funds are not used to support SBIC investments.
This bill aims to provide additional capital available for businesses in these critical industries. Further, it reinstates an inflation adjuster for SBIC leverage caps, ensuring investment power remains aligned with market trends.
“By implementing additional bonus leverage within the SBIC Program, this bill strengthens investment in underserved areas without adding cost or risk to taxpayers. The Investing in All of America Act is not just about expanding access to capital; it’s about revitalizing communities, creating jobs, and bolstering economic growth in eastern and central Pennsylvania and similar regions nationwide. I urge my colleagues to support this bipartisan effort to help grow America’s small businesses,” Meuser said.
Over the past 20 years, SBIC-backed businesses have generated 3 million new jobs and supported an additional 10.5 million jobs. Last year alone, SBICs injected more than $8 billion into U.S. small businesses. Despite these successes, recent studies indicate that less than 20 percent of SBIC investment reaches low- to middle-income communities. The Investing in All of America Act seeks to close this gap and promote a more equitable distribution of investment capital.
“Small businesses are the backbone of our economy, yet far too many in rural and underserved communities struggle to access the capital they need to grow and thrive,” Scholten said. “The bipartisan Investing in All of America Act is about ensuring that every entrepreneur has a fair shot at success. Expanding access to investment will help create jobs and strengthen West Michigan’s economy. I’m proud to work with Rep. Meuser to support our small businesses.”
Further, by expanding access to capital through the SBIC Program, this bill provides resources for small manufacturers to invest in new equipment, expand production, and create jobs.
“This is smart policy that will help small businesses and manufacturers access the capital they need to grow, particularly those in low-income and rural parts of the country, without new federal spending, regulations, or mandates,” SBIA President Brett Palmer said.