Lets investment companies boost funding for rural, tech, and manufacturing small businesses.
This bill would make it easier for certain small businesses, like those in rural areas, critical technology, and manufacturing, to get funding. It would change how investment companies (SBICs) can count their money, encouraging them to put more into these specific areas. It also updates the maximum loan amounts for these companies to keep up with inflation.
Today, Small Business Investment Companies (SBICs) can borrow up to 300 percent of their private capital, and their maximum loan amounts are fixed. Investments that can be excluded from this calculation are mainly for low-income areas. After this bill, SBICs would have a lower overall borrowing limit of 200 percent of their private capital. However, they would be able to exclude investments in small businesses in rural areas, critical technology, and manufacturing from this calculation, up to $125,000,000 or 50 percent of their private capital. The maximum loan amounts for most SBICs (which would be $175,000,000 for single and $350,000,000 for commonly controlled companies) would also be adjusted annually for inflation, except for those issuing accrual debentures.
S 1917 · 119th Congress · AI Summary by gemini-2.5-flash · 10/10
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