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 seeks to exclude certain investments in smaller enterprises located in rural or low-income areas and small businesses in critical technology areas from leverage limits. This bill was introduced in the Senate and referred to the Committee on Small Business and Entrepreneurship.
Expected Effects
The act will likely increase investment in small businesses located in targeted areas by adjusting leverage limits for Small Business Investment Companies (SBICs). This could lead to more capital being available for these businesses. It also refines the definition of funds eligible for leverage exclusion, potentially impacting the types of investments SBICs can make.
Potential Benefits
- Increased investment in rural and low-income areas.
- Support for small businesses in critical technology sectors.
- Greater access to capital for small manufacturers.
- Potential for job creation in underserved communities.
- Encourages private capital investment by excluding certain government funds from leverage calculations.
Potential Disadvantages
- Potential for increased risk-taking by SBICs due to adjusted leverage limits.
- Possible unintended consequences from altered definitions of eligible funds.
- The shift in leverage calculation could disadvantage companies not focused on the specified areas.
- The prospective applicability clause may create a temporary disadvantage for existing investments.
- The changes to maximum leverage exclusion may require SBICs to adjust their investment strategies.
Constitutional Alignment
The bill appears to align with the Commerce Clause (Article I, Section 8, Clause 3) by promoting economic activity through investment in small businesses, particularly those in underserved areas and critical technology sectors. It also aligns with the General Welfare Clause (Article I, Section 8, Clause 1) by aiming to improve economic conditions and opportunities for citizens across the nation. The bill does not appear to infringe upon any specific constitutional rights or limitations.
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).