PRIA Logo™
119-hr-5559119th CongressWALLET

Investments in Innovation Act of 2025

Sponsored By: Representative Strickland, Marilyn [D-WA-10]

Introduced

Summary

Eases leverage limits for SBIC investments in socially and economically disadvantaged small businesses. The bill would let the Small Business Administration exclude the cost basis of certain equity investments in socially and economically disadvantaged small business concerns (SEDSBCs) from an SBIC's outstanding leverage calculation, while requiring certification and imposing concentration caps.

Show full summary
  • Small business investment companies (SBICs) would be able to exclude equity investments in SEDSBCs from their leverage up to 50% of the SBIC's private capital. To qualify an SBIC must certify that at least 50% of its dollar investments will go to SEDSBCs and be licensed in the first fiscal year after enactment or later.
  • Socially and economically disadvantaged small business concerns would see broader leverage eligibility for investors. That change would make SBIC-backed equity investment in these firms more attractive under the leverage rules.
  • The bill adds concentration limits. Any single portfolio company would face a cap equal to the lesser of 300% of its private capital or $175 million. For two or more companies under common control the aggregate cap is $250 million.

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Free to download

Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

Borrowing relief for funds backing disadvantaged small firms

If enacted, the Small Business Administration would ignore some equity investments when it counts a fund’s borrowing. It would exclude equity put into socially and economically disadvantaged small businesses, up to 50% of the fund’s private capital. To qualify, a fund must be licensed in or after the first fiscal year after enactment. It must also certify that at least 50% of its investment dollars go to those disadvantaged businesses. One fund’s total Small Business Administration leverage could not exceed the lesser of 300% of private capital or $175 million. For funds under common control, their combined leverage could not exceed $250 million. This exclusion would apply only to equity, not debt. The change would take effect on enactment.

Sponsors & CoSponsors

Sponsor

Strickland, Marilyn [D-WA-10]

WA • D

Cosponsors

  • Rep. Smith, Adam [D-WA-9]

    WA • D

    Sponsored 9/23/2025

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
Back to Legislation