The U.S. House of Representatives recently passed bipartisan legislation that would incentivize Small Business Investment Companies’ (SBICs) greater investment in small businesses located in rural or low-income areas and small businesses in the manufacturing and national security technologies sector. SBIC’s existing leverage cap would be waived for these types of businesses.
SBICs invest private capital, matched by the Small Business Administration (SBA), directly into small businesses. SBICs are considered among the federal government’s most effective public-private partnerships.
SBIC-backed businesses have created 3 million jobs and supported 10.5 million jobs over the last 20 years. In 2024, SBICs invested more than $8 billion in small businesses nationwide, but less than 20 percent of investments currently reach low- and middle-income communities.
U.S. Reps. Dan Meuser (R-PA) and Hillary Scholten (D-MI) introduced the bill.
“With decades of experience growing a small business into a larger one, I know firsthand the challenges entrepreneurs face,” Meuser said, “By expanding access to capital and reducing barriers to entry, the Investing in All America Act helps manufacturers scale and create high-quality American jobs, without subsidy cost to the taxpayer. It strengthens small businesses, fuels domestic manufacturing, and supports rural and underserved communities across Northeast Pennsylvania and the country.”
The Investing in All of America Act now heads to the U.S. Senate for consideration.