Bill · H.R. 5559· House(119-HR-5559)
Investments in Innovation Act of 2025
- Introduced
- 9/23/2025
- Last activity
- 9/23/2025 — Referred to the House Committee on Small Business.
- Sponsored by
- Marilyn Strickland
- Cosponsors
- - 1 - 0
- Introduced
- In Committee
What this bill would do
This bill, titled the "Investments in Innovation Act of 2025," proposes to amend the Small Business Investment Act of 1958. It seeks to change how the leverage limit is calculated for small business investment companies. Specifically, it would exclude certain amounts invested in socially and economically disadvantaged small business concerns from the calculation of a company's outstanding leverage. This applies to companies that certify at least 50 percent of their investments are made in such entities. The bill also sets specific maximum leverage limits for these companies.
Yes· 3 of 6
Does this make it easier to run a small business?+6
The bill incentivizes investment in disadvantaged small businesses by allowing them to exclude those investments from leverage limit calculations.
Would business owners be better off under this?+5
Small business owners in disadvantaged categories will have increased access to investment capital under these new rules.
Would Black Americans be better off under this?+5
The bill promotes capital access for socially and economically disadvantaged entities which includes many minority-owned businesses.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Support for disadvantaged businesses: Small business investment companies can exclude the cost basis of equity investments made in socially and economically disadvantaged small business concerns from their outstanding leverage calculation (Section 2). This could allow more capital to flow into these specific types of businesses.
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Incentive for specific investment types: The bill encourages companies to invest in disadvantaged entities by allowing them to exclude these amounts from leverage calculations, provided the investments do not exceed 50 percent of the company's private capital (Section 2).
Potential Negative Impacts for People
-
Restrictions on investment amounts: There are strict caps on the amount of outstanding leverage available, which may limit the growth of these investment companies (Section 2). For a single company, the limit is the lesser of 300 percent of private capital or $175,000,000. For multiple companies under common control, the limit is $250,000,000 (Section 2).
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Strict investment requirements: To qualify for the leverage exclusion, a company must certify in writing that at least 50 percent of its dollar amount of investments are made in socially and economically disadvantaged small business concerns (Section 2).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For African Americans+5Good For Business Owners+5Good For Hispanic Americans+5Good For Low Income Households+3
- Economy And Finance
- Improves Small Business Support+6
- Social Issues And Justice
- Improves Racial Equity+5
- 9/23/2025
- Referred to the House Committee on Small Business.
- 1 Cosponsor added.
- Introduced in House
Adam SmithDemocrat · Washington