Investing in All of America (H.R. 2066)

Summary

Changes investment rules to help small businesses in rural, low-income, and important technology areas get more funding by not counting certain investments against a limit.

What problem does this solve?

Small businesses in rural, low-income, and critical technology sectors often struggle to attract enough investment. Existing rules for investment companies can limit how much money they can put into these specific types of businesses. This bill changes the rules so investments in these targeted businesses don't count towards the investment companies' total limit, freeing them up to invest more.

What does this bill do?

Excludes certain investments from debt limits

Stops counting investments in small businesses located in rural or low-income areas, critical technology fields, or small manufacturers against an investment company's total allowed debt.

Sets new limits on investment company debt

Changes the maximum debt an investment company can take on, setting new limits of $250 million or $175 million depending on how the company pays interest.

Caps the amount of excluded investments

Limits the total amount of investments that can be excluded from the debt calculation to either 50% of the investment company's private funds or $125 million, whichever is less.

Applies new rules only to future investments

Makes clear that the special exclusion from debt limits only applies to investments made after this bill becomes law, not to past investments.

Expands the definition of private capital

Allows funds from a college or university's foundation, endowment, or trust to be counted as private capital for investment companies.

Who does this affect?

Small Business Investment Companies (SBICs)
Small businesses in rural and low-income areas
Small businesses in critical technology sectors

What is the real world impact?

•

Boosts investment in underserved areas

Encourages Small Business Investment Companies (SBICs) to direct more money to businesses in rural, low-income, and critical technology sectors. This helps stimulate economic growth and innovation in places that investors often overlook.

When does this start?

The new investment rules will apply only to investments made after the bill becomes law.