HR 2066: Investing in All of America Act of 2025

HR 2066 in plain English: This bill modifies the rules governing Small Business Investment Companies (SBICs), which use a mix of private capital and SBA financing to invest in small businesses. It adjusts the maximum amount of SBA financing an SBIC can receive and expands what counts as private capital, including investments from college and university endowments and certain government-sponsored corporations.

Stated purpose

To change the rules governing how much government-backed financing Small Business Investment Companies can access, and to encourage them to invest in rural areas, low-income areas, critical technology businesses, and small manufacturers.

Key points

• Reduces the maximum SBA financing an SBIC can receive from 300% to 200% of its private capital
• Raises the financing cap for two or more commonly controlled SBICs making quarterly or semiannual interest payments from $350 million to $475 million
• Allows investments in rural areas, certain technology sectors, and small manufacturers to be excluded from financing limit calculations, up to $125 million or 50% of private capital
• Expands the definition of private capital to include funds from certain government-sponsored corporations and college or university trust or endowment investments

Arguments supporters make

• Directing investment toward rural areas, small manufacturers, and critical technology companies helps spread economic opportunity to places and industries that are often overlooked by private capital markets.
• Allowing college and university endowments to count as private capital brings more institutional money into the SBIC program, giving small businesses access to more funding overall.
• Raising the combined cap for commonly controlled SBICs that pay regular interest rewards financially responsible fund management and lets successful investment groups grow their impact.

Arguments opponents make

• Lowering the general leverage limit from 300% to 200% could reduce the total amount of financing available to SBICs that do not focus on the targeted areas, potentially shrinking overall small business investment.
• The exclusion rules for targeted investments are complex, which could favor larger, well-resourced SBICs with the legal and accounting staff to navigate them, leaving smaller funds at a disadvantage.
• Relying on SBICs to channel capital to underserved areas is an indirect approach; critics may argue there is no guarantee the new incentives will produce meaningful investment in the communities that need it most.

Tradeoffs

The bill tightens borrowing limits for general SBIC activity while creating special carve-outs for specific investment categories, so any benefit to rural, low-income, or technology-focused small businesses comes alongside reduced overall leverage for the broader SBIC program.

Current status in Congress: Became law.

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