Investing in All of America Act of 2025

New small-business investment leverage rules

If enacted, this bill would change how Small Business Investment Companies (SBICs) count outstanding leverage. It would lower a numeric base cap from 300 to 200. The bill would let SBICs exclude certain new kinds of investments only if made after enactment, including investments in small businesses in low-income or rural areas, in covered technology categories, and in small manufacturers. It would add foundations, endowments, and college or university trusts as eligible private funding sources and remove an old "established before October 1, 1987" rule. At the same time, the bill would cap excluded amounts: the per-company exclusion would be the lesser of 50% of private capital or $125,000,000, commonly controlled groups would face aggregate caps of $475 million (for companies that pay interest quarterly or semiannually) or $350 million (for other companies), and clause (ii) thresholds would be $250 million or $175 million depending on payment frequency. The bill would also clarify that funds from federal, state, or local governments are generally not eligible for leverage approval except for specific, enumerated exceptions.