HR 5559
Investments in Innovation Act of 2025
Take action
Record your position on this measure.
Sign in to record your position, submit testimony, or contact your legislator.
Sign in to take action- Introduced
- Passed House
- Passed Senate
- To President
- Became Law
Bill overview
This bill amends the Small Business Investment Act of 1958 to allow small business investment companies to exclude a portion of their investments in socially and economically disadvantaged small businesses from calculations used to determine their leverage limits. Specifically, companies can exclude up to 50% of the cost basis of equity investments in these businesses, subject to certain limitations on overall leverage. The bill also establishes requirements for companies to certify their investment plans.
Key provisions
- Excludes investments in socially and economically disadvantaged small businesses from leverage calculations.
- Allows up to 50% of the cost basis of equity investments in these businesses to be excluded.
- Sets limits on the total amount of outstanding leverage for individual companies.
- Establishes a maximum leverage limit of 300% of private capital for companies.
- Sets a maximum leverage limit of $250,000,000 for groups of companies under common control.
- Requires companies to certify their investment plans to prioritize investments in disadvantaged small businesses.
Who is affected
- Small Business Investment Companies
- Socially and Economically Disadvantaged Small Businesses
- Small Businesses
Notable changes
- Modifies the Small Business Investment Act of 1958 to address investments in disadvantaged small businesses.
- Introduces a specific exclusion for investment amounts in these businesses when calculating leverage.
Sponsors
Official sponsors from legislative records.
Primary sponsor
Cosponsor
Arguments in favor
Reasons to support this legislation.
No arguments in favor have been submitted.
Submit yoursArguments opposed
Reasons to oppose this legislation.
No arguments opposed have been submitted.
Submit yoursRead the latest version inline or switch to a previous version.
119th CONGRESS — 1st Session
H. R. 5559
IN THE HOUSE OF REPRESENTATIVES
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.
This Act may be cited as the Investments in Innovation Act of 2025
.
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:
The maximum amount of outstanding leverage made available to—
2 or more companies described in clause (iii) that are under common control (as determined by the Administrator) may not exceed $250,000,000.