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

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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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