Bill > S1917

This bill aims to amend the Small Business Investment Act of 1958 to modify the leverage limits for Small Business Investment Companies (SBICs), with several key provisions. The bill introduces new exclusions for investments in certain types of businesses, specifically those located in rural or low-income areas, operating in critical technology categories, or classified as small manufacturers. It reduces the maximum leverage amount from $300 million to $200 million for individual companies and adjusts the total leverage limit for commonly controlled companies. The bill also excludes certain government funds from being counted towards leverage calculations and allows for annual adjustments to dollar amounts based on the Consumer Price Index. Importantly, the legislation provides that investments in targeted business sectors can be excluded from leverage calculations, up to 50% of a company's private capital or $125 million, whichever is less. These changes are designed to provide more flexible financing options for small businesses in strategic or underserved areas, potentially encouraging investment in rural, technological, and manufacturing sectors by giving SBICs more latitude in their investment strategies.

Business and Industry

https://www.congress.gov/bill/119th-congress/senate-bill/1917/all-info