H.R.2066 - Investing in All of America Act of 2025 (119th Congress)
Summary
H.R.2066, the Investing in All of America Act of 2025, aims to amend the Small Business Investment Act of 1958. The bill seeks to exclude certain investments in smaller enterprises located in rural or low-income areas and small businesses in critical technology areas from the leverage limit. This adjustment intends to encourage investment in underserved areas and crucial technological sectors.
Expected Effects
The bill's passage would likely lead to increased investment in small businesses located in targeted areas. This could stimulate economic activity and job creation in these regions. It also adjusts the calculation of leverage limits for Small Business Investment Companies (SBICs).
Potential Benefits
- Increased investment in rural and low-income areas.
- Support for small businesses in critical technology sectors.
- Potential for job creation and economic growth in underserved regions.
- Adjustment of leverage limits to encourage further investment.
- Annual adjustments to dollar amounts based on the Consumer Price Index (CPI).
Potential Disadvantages
- Potential for increased risk-taking by SBICs due to adjusted leverage limits.
- Possible unintended consequences from excluding certain funds from leverage calculations.
- Complexity in defining and identifying eligible businesses and areas.
- The exclusion of accrual debentures from CPI adjustments could create disparities.
- The shift from 300 to 200 in subparagraph (A)(i) could initially restrict some investment.
Constitutional Alignment
The bill appears to align with the spirit of the Constitution's general welfare clause (Preamble). Specifically, it promotes economic activity and opportunity, potentially contributing to a more perfect union. Congress's authority to regulate commerce (Article I, Section 8) provides a basis for this legislation, as it directly impacts investment and business activity across state lines.
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).