Bill > S3341

This bill modifies the Small Business Investment Act of 1958 to expand leverage opportunities for Small Business Investment Companies (SBICs) that invest in specific types of enterprises. The bill reduces the maximum leverage limit for individual companies from $300 million to $200 million, but creates new exclusions for investments in rural areas, low-income geographic areas, critical technology sectors, and small manufacturers. Specifically, companies can now exclude up to the lesser of 50% of their private capital or $125 million from leverage calculations when investing in these targeted areas. The bill also clarifies that certain government funds cannot be used for leverage approval, and expands the definition of eligible investment sources to include foundations, endowments, and university trusts. Additionally, the bill adjusts leverage limits for companies making quarterly or semiannual interest payments, allowing them slightly higher maximum leverage amounts. These changes aim to encourage investment in underserved and strategically important business sectors by providing more flexible financing mechanisms for Small Business Investment Companies.

Business and Industry

https://www.congress.gov/bill/119th-congress/senate-bill/3341/all-info