U.S. Rep Dan Meuser (R-PA), along with Rep. Hillary Scholten (D-MI), introduced a bill in Congress that seeks to help small businesses in rural or low-income areas.
The bill, the Investing in All of America Act (H.R. 2066), looks to ensure that dollars invested in rural and low-income areas, as well as in manufacturing and the critical technology sector, will not count against a Small Business Investment Company’s (SBIC) leverage cap.
SBICs leverage private sector investment with support from the Small Business Administration (SBA) to drive economic growth. These entities raise private capital, which is then matched with leverage by the SBA, allowing them to invest directly in small businesses. Importantly, the SBIC program operates without taxpayer subsidy, meaning taxpayer funds are not used to support SBIC investments.
This bill aims to provide additional capital available for businesses in these critical industries. Further, it reinstates an inflation adjuster for SBIC leverage caps, ensuring investment power remains aligned with market trends.
“As someone who spent more than 20 years helping grow a small business into a larger business, I understand firsthand the challenges of securing capital,” Meuser said. “Persistent inflation and rising interest rates have only made it harder for small businesses in Pennsylvania and across the country to access the funding they need to grow and succeed. By implementing additional bonus leverage within the SBIC Program, this bill strengthens investment in underserved areas without adding cost or risk to taxpayers. The Investing in All of America Act is not just about expanding access to capital; it’s about revitalizing communities, creating jobs, and bolstering economic growth in eastern and central Pennsylvania and similar regions nationwide. I urge my colleagues to support this bipartisan effort to help grow America’s small businesses.”
Over the past 20 years, SBIC-backed businesses have generated 3 million new jobs and supported an additional 10.5 million jobs. Last year alone, SBICs injected more than $8 billion into U.S. small businesses. Last year alone, SBICs injected more than $8 billion into U.S. small businesses, including $412.3 million directed toward Pennsylvania small businesses.
Despite these successes, recent studies indicate that less than 20 percent of SBIC investment reaches low- to middle-income communities. The Investing in All of America Act seeks to close this gap and promote a more equitable distribution of investment capital.
Further, by expanding access to capital through the SBIC Program, this bill provides resources for small manufacturers to invest in new equipment, expand production, and create jobs.
“This is smart policy that will help small businesses and manufacturers access the capital they need to grow, particularly those in low-income and rural parts of the country, without new federal spending, regulations, or mandates,” SBIA President Brett Palmer said.