Investing in All of America Act of 2025

Small Business Investment Companies can access more federally backed capital and exclude certain priority investments from leverage calculations, potentially directing more financing toward targeted small businesses.

What the law does ​

• Raises leverage caps to $250 million for a single company making quarterly or semiannual interest payments and $175 million for other companies.
• Raises combined leverage caps for commonly controlled companies to $475 million with quarterly or semiannual payments and $350 million otherwise.
• Excludes qualifying investments in low-income or rural areas, critical technology fields, and small manufacturers from leverage calculations.
• Caps exclusions at the lesser of 50 percent of private capital or $125 million while retaining the overall 200-percent leverage limit.
• Limits the exclusion to qualifying investments made after enactment.
• Generally excludes government funds from private capital, with exceptions for specified pension, educational, foundation, endowment, and trust funds.

Who it affects ​

• Small Business Investment Companies seeking federal leverage.
• Small businesses in low-income or rural communities.
• Small manufacturers and businesses operating in covered critical technology fields.
• Public pension, college, university, foundation, endowment, and trust funds that may qualify as private capital.

Breakdown ​

Investing in All of America Act of 2025 ​

The law changes federal leverage limits for Small Business Investment Companies and allows certain qualifying investments to be left out when calculating those limits. The exclusion covers investments in small businesses in low-income or rural areas, critical technology fields, and small manufacturing, subject to a cap and only for investments made after enactment.

Key takeaways

• A single investment company may generally use leverage up to 200 percent of its private capital, subject to a dollar cap of $250 million for companies making quarterly or semiannual interest payments and $175 million for other companies.
• Commonly controlled investment companies may have combined leverage of up to $475 million if they make quarterly or semiannual interest payments, or $350 million otherwise.
• Qualifying investments in small businesses located in low-income or rural areas, operating primarily in covered critical technology categories, or meeting the definition of a small manufacturer may be excluded from leverage calculations.
• The total exclusion cannot exceed the lesser of 50 percent of the company or companies’ private capital or $125 million, and the general 200-percent leverage limit still applies.
• Only qualifying investments made after the law’s enactment are eligible for the exclusion.
• Government funds generally do not count as private capital when federal leverage is approved, except for specified qualifying funds such as certain public pension, college, university, foundation, endowment, or trust funds.