A Democratic bill with 1 Democratic cosponsor · See the cosponsor
Last activity — Referred to the House Committee on Small Business.
In committee
Introduced and handed to a committee in the chamber it started in.
The committee holds it, and most bills are never heard from again. A hearing or a committee vote would be news; silence is the usual outcome, and it kills the bill without anyone voting against it.
Its path through Congress
- Introduced
- In Committee
What this bill would do
This bill, titled the "Investments in Innovation Act of 2025," proposes to amend the Small Business Investment Act of 1958. It seeks to change how the leverage limit is calculated for small business investment companies. Specifically, it would exclude certain amounts invested in socially and economically disadvantaged small business concerns from the calculation of a company's outstanding leverage. This applies to companies that certify at least 50 percent of their investments are made in such entities. The bill also sets specific maximum leverage limits for these companies.
Yes· 3 of 6
- Scored +6
Does this make it easier to run a small business?
The bill incentivizes investment in disadvantaged small businesses by allowing them to exclude those investments from leverage limit calculations.
- Scored +5
Would business owners be better off under this?
Small business owners in disadvantaged categories will have increased access to investment capital under these new rules.
- Scored +5
Would Black Americans be better off under this?
The bill promotes capital access for socially and economically disadvantaged entities which includes many minority-owned businesses.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Support for disadvantaged businesses: Small business investment companies can exclude the cost basis of equity investments made in socially and economically disadvantaged small business concerns from their outstanding leverage calculation (Section 2). This could allow more capital to flow into these specific types of businesses.
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Incentive for specific investment types: The bill encourages companies to invest in disadvantaged entities by allowing them to exclude these amounts from leverage calculations, provided the investments do not exceed 50 percent of the company's private capital (Section 2).
Potential Negative Impacts for People
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Restrictions on investment amounts: There are strict caps on the amount of outstanding leverage available, which may limit the growth of these investment companies (Section 2). For a single company, the limit is the lesser of 300 percent of private capital or $175,000,000. For multiple companies under common control, the limit is $250,000,000 (Section 2).
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Strict investment requirements: To qualify for the leverage exclusion, a company must certify in writing that at least 50 percent of its dollar amount of investments are made in socially and economically disadvantaged small business concerns (Section 2).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Tap or hover a score for the reason it gave.
- Demographic And Interest Groups
- Would Black Americans be better off under this? — The bill promotes capital access for socially and economically disadvantaged entities which includes many minority-owned businesses. Would business owners be better off under this? — Small business owners in disadvantaged categories will have increased access to investment capital under these new rules. Would Hispanic Americans be better off under this? — The bill promotes capital access for socially and economically disadvantaged entities which includes many minority-owned businesses. Would households on low incomes be better off under this? — Increased capital flow into disadvantaged small businesses can help stimulate local economies and opportunities for low-income households.
- Economy And Finance
- Does this make it easier to run a small business? — The bill incentivizes investment in disadvantaged small businesses by allowing them to exclude those investments from leverage limit calculations.
- Social Issues And Justice
- Does this narrow racial gaps in how people are treated? — By providing leverage incentives for investments in socially and economically disadvantaged businesses, the bill aims to support minority-owned enterprises.
- 9/23/2025
- Referred to the House Committee on Small Business.
- 1 Cosponsor added.
- Introduced in House
Adam SmithDemocrat · Washington