H.R.754 - Investing in Main Street Act of 2025 (119th Congress)
Summary
H.R. 754, the "Investing in Main Street Act of 2025," proposes to amend the Small Business Investment Act of 1958. The amendment focuses on increasing the amount that can be invested in small business investment companies (SBICs). Specifically, it changes the investment limit from 5 percent to 15 percent, as indicated in Section 302(b) of the original act.
Expected Effects
The bill aims to stimulate investment in small businesses by increasing the capital available to SBICs. This could lead to greater funding opportunities for small businesses, potentially fostering growth and innovation. The change directly impacts the financial landscape for small business investment.
Potential Benefits
- Increased access to capital for small businesses.
- Potential for job creation and economic growth in local communities.
- Stimulation of innovation and entrepreneurship.
- Enhanced competitiveness of small businesses.
- Support for businesses on Main Street.
Potential Disadvantages
- Potential for increased risk-taking by SBICs due to higher investment limits.
- Possible crowding out of other funding sources for small businesses.
- Risk of misallocation of capital if SBICs do not invest wisely.
- Increased oversight needed to prevent fraud or abuse.
- May disproportionately benefit certain types of small businesses over others.
Constitutional Alignment
The bill appears to align with the spirit of the Constitution, particularly the goal of promoting the general welfare as stated in the Preamble. Article I, Section 8 grants Congress the power to regulate commerce, which includes supporting and regulating small businesses. 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).