119-hr5559

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5559 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 5559

To amend the Small Business Investment Act of 1958 to exclude from the 
 leverage limit calculation for small business investment companies 
 certain amounts invested in socially and economically disadvantaged 
 small business concerns, and for other purposes.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 September 23, 2025

Ms. Strickland (for herself and Mr. Smith of Washington) introduced the 
 following bill; which was referred to the Committee on Small Business

_______________________________________________________________________

 A BILL

To amend the Small Business Investment Act of 1958 to exclude from the 
 leverage limit calculation for small business investment companies 
 certain amounts invested in socially and economically disadvantaged 
 small business concerns, and for other purposes.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Investments in Innovation Act of 
2025''.

SEC. 2. INVESTMENTS IN SOCIALLY AND ECONOMICALLY DISADVANTAGED SMALL 
 BUSINESSES.

 

Section 303

    (b)

    (2) of the Small Business Investment Act of 1958 (15 
U.S.C. 683

    (b)

    (2) ) is amended by adding at the end the following new 
subparagraph:
 ``
        (E) Investments in socially and economically 
 disadvantaged small businesses.--
 ``
            (i) In general.--Subject to clause
            (ii) , 
 in calculating the outstanding leverage of a 
 company for the purposes of subparagraph
        (A) , 
 the Administrator shall exclude the amount of 
 the cost basis of any equity investment made by 
 the company in a smaller enterprise that is a 
 socially and economically disadvantaged small 
 business concern (as defined in 

section 8

    (a)

    (4) of the Small Business Act (15 U.S.C. 
 637

    (a)

    (4) )), to the extent that the total of 
 such amounts does not exceed 50 percent of the 
 company's private capital.
 ``
            (ii) Limitation.--The maximum amount of 
 outstanding leverage made available to--
 ``
            (I) any 1 company described in 
 clause
            (iii) may not exceed the lesser 
 of 300 percent of private capital of 
 the company, or $175,000,000; and
 ``
            (II) 2 or more companies 
 described in clause
            (iii) that are 
 under common control (as determined by 
 the Administrator) may not exceed 
 $250,000,000.
 ``
            (iii) Company described.--A company 
 described in this clause is a company licensed 
 under 

section 301
            (c) in the first fiscal year 
 after the date of enactment of this clause or 
 any fiscal year thereafter that certifies in 
 writing that not less than 50 percent of the 
 dollar amount of investments of that company 
 shall be made in entities that are socially and 
 economically disadvantaged small business 
 concerns (as defined in 

section 8

    (a)

    (4) of the 
 Small Business Act (15 U.S.C. 637

    (a)

    (4) )).''.
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