S.1917 - Investing in All of America Act of 2025 (119th Congress)
Summary
The "Investing in All of America Act of 2025" (S.1917) aims to amend the Small Business Investment Act of 1958. The bill focuses on excluding certain investments from leverage limits for Small Business Investment Companies (SBICs). These exclusions apply to investments in smaller enterprises located in rural or low-income areas, as well as small businesses in critical technology areas and small manufacturers.
Expected Effects
The Act intends to incentivize investment in underserved areas and critical technology sectors by modifying leverage limitations for SBICs. This could lead to increased capital flow to these targeted businesses. The bill also adjusts leverage limits and modifies definitions related to eligible funds and investment calculations.
Potential Benefits
- Increased investment in rural and low-income areas.
- Support for small businesses in critical technology areas.
- Enhanced access to capital for small manufacturers.
- Potential for job creation and economic growth in targeted regions.
- Adjustment of leverage limits to reflect current economic conditions.
Potential Disadvantages
- Potential for increased risk-taking by SBICs due to leverage exclusions.
- Possible unintended consequences from altered definitions and investment calculations.
- Complexity in administering and monitoring the new leverage rules.
- Risk of funds being diverted from other important sectors.
- The exclusion of government funds could limit the overall pool of available capital.
Constitutional Alignment
The bill appears to align with the Constitution's Commerce Clause (Article I, Section 8), which grants Congress the power to regulate commerce among the states. By incentivizing investment in specific sectors and regions, the bill aims to promote economic activity and development, which falls under the purview of interstate commerce regulation. The bill does not appear to infringe upon any specific 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).