Bill > HR2066

This bill amends the Small Business Investment Act of 1958 to modify how small business investment companies (SBICs) can access leverage funding and make investments. The legislation reduces the maximum leverage limit for most companies from $300 million to $200 million and introduces new provisions for companies making quarterly or semiannual interest payments, allowing them higher leverage limits of $250 million. The bill also creates an exclusion mechanism that allows companies to invest more freely in specific types of businesses, including small businesses located in rural or low-income areas, businesses in critical technology sectors, and small manufacturers. Under the new rules, companies can exclude up to 50% of their private capital (or $125 million, whichever is less) from leverage calculations when investing in these targeted business categories. Additionally, the bill clarifies that government funds cannot be used for leverage approval, with some specific exceptions, and expands the definition of eligible investment sources to include foundations, endowments, and university trusts. These changes are designed to encourage investment in underserved and strategically important business sectors while providing more flexible funding mechanisms for small business investment companies.

Business and Industry

https://www.congress.gov/bill/119th-congress/house-bill/2066/all-info