Bill > HR5559

This bill amends the Small Business Investment Act of 1958 to provide additional financial support for socially and economically disadvantaged small businesses by modifying leverage limit calculations for small business investment companies (SBICs). Specifically, the bill allows the Small Business Administration to exclude from leverage limit calculations the cost basis of equity investments made in socially and economically disadvantaged small business concerns, up to 50 percent of a company's private capital. For SBICs that certify they will invest at least 50 percent of their funds in such businesses, the bill increases the maximum outstanding leverage to either 300 percent of private capital or $175 million for a single company, and up to $250 million for companies under common control. The term "socially and economically disadvantaged small business concerns" is defined in the Small Business Act and typically refers to businesses owned by individuals from groups that have been historically disadvantaged in the United States. This legislation aims to increase access to capital and investment opportunities for minority-owned and other underserved small businesses by providing more flexible financing mechanisms for investment companies.

Business and Industry

https://www.congress.gov/bill/119th-congress/house-bill/5559/all-info