More capital for small businesses in rural areas and critical technology sectors.
This Act aims to boost capital access for small businesses, particularly those in rural, low-income areas, and critical technology sectors vital for national security. It excludes certain investments from the leverage limit for Small Business Investment Companies (SBICs), allowing these funds to deploy more private capital into strategic areas. Citizens may benefit from increased job creation and economic development in underserved communities, alongside strengthened innovation in key technological fields.
Key points
Increased financial support for small firms: Investments in businesses located in rural or low-income areas are excluded from the SBIC leverage limit, making it easier for them to raise more capital.
National security focus: Small businesses operating in critical technology areas (vital for US national security) also benefit from this exclusion, aiming to spur innovation in these sectors.
Exclusion limit: The aggregate amount excluded from the leverage calculation is capped at the lesser of $125 million or 50% of the private capital of the investment company.
Annual inflation adjustment: Leverage dollar limits will be adjusted annually based on the Consumer Price Index to maintain their real value over time.
Expired
Citizen Poll