Investing in All of America Act of 2025
Summary
The "Investing in All of America Act of 2025" aims to amend the Small Business Investment Act of 1958. It focuses on excluding certain investments from leverage limits for smaller enterprises in rural or low-income areas, as well as small businesses in critical technology areas. The bill also adjusts the maximum leverage amounts available to Small Business Investment Companies (SBICs).
Expected Effects
The act will likely increase investment in targeted small businesses by allowing SBICs to leverage more capital. This could stimulate economic activity in underserved areas and promote innovation in critical technologies. However, it may also increase the risk of losses for SBICs and potentially taxpayers if these investments fail.
Potential Benefits
- Increased investment in small businesses located in rural and low-income areas.
- Support for small businesses operating in critical technology sectors.
- Potential for job creation and economic growth in underserved communities.
- Greater access to capital for small manufacturers.
- Encourages private capital investment by excluding certain government funds from leverage calculations.
Potential Disadvantages
- Increased risk of losses for SBICs due to higher leverage.
- Potential for misuse of funds or inefficient allocation of capital.
- Complexity in defining and identifying eligible businesses and areas.
- Possible unintended consequences from altering leverage limits.
- The exclusion of government funds could limit the pool of available capital.
Constitutional Alignment
The bill appears to align with the Constitution's Article I, Section 8, which grants Congress the power to regulate commerce and promote the general welfare. By targeting specific sectors and geographic areas, the bill aims to stimulate economic activity, which falls under Congress's enumerated powers. The bill does not appear to infringe on any individual rights or liberties protected by the Bill of Rights.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).