Investing in All of America Act of 2023

To amend the Small Business Investment Act of 1958 to exclude from the limit on leverage certain amounts invested in smaller enterprises located in rural or low-income areas and small businesses in critical technology areas, and for other purposes. 1. Short title This Act may be cited as the Investing in All of America Act of 2023 2. SBIC maximum leverage exclusion (a) Definitions Section 103(9) of the Small Business Investment Act of 1958 ( 15 U.S.C. 662(9) (1) in subparagraph (A)(ii), by striking and (2) in subparagraph (B)(iii)— (A) in subclause (I), by striking established prior to October 1, 1987 (B) in subclause (II)— (i) by striking or , (ii) by inserting , or a foundation, endowment, or trust of a college or university pension plan (C) in subclause (III), by striking the semicolon at the end and inserting ; and (3) by adding at the end the following new subparagraph: (C) does not include any funds obtained directly or indirectly from any Federal, State or local government or any government agency or instrumentality, except for funds described in subclauses (I) through (III) of subparagraph (B)(iii), for the purpose of approval by the Administrator of any request for leverage. . (b) In general Section 303(b)(2) of the Small Business Investment Act of 1958 ( 15 U.S.C. 683(b)(2) (1) in subparagraph (A)(i), by striking 300 200 (2) in subparagraph (C)— (A) in the heading— (i) by inserting or rural low-income (ii) by inserting or critical technology areas geographic areas (B) in clause (i)— (i) by striking (i) In calculating (i) In general Except as provided in clause (iii), in calculating ; (ii) by inserting or companies of a company (iii) by striking subparagraph (A) subparagraphs (A) and (B) (iv) by striking equity (v) by striking the company in a smaller enterprise the company or companies in— (I) a smaller enterprise located in a low-income geographic area (as defined in section 689 of this title) or in a rural area; or ; and (vi) by adding at the end the following new subclause: (II) a small business concern in an area of critical technology (as defined in section 4801 of title 10, United States Code) vital to maintaining the national security of the United States. ; (C) by amending clause (ii) to read as follows: (ii) Limitation While maintaining the limitation of subparagraph (A)(i) and consistent with a leverage determination ratio issued pursuant to section 301(c), the aggregate amount excluded for a company or companies under clause (i) from the calculation of the outstanding leverage of such company or companies for the purposes of subparagraphs (A) and (B) may not exceed the lesser of 50 percent of the private capital of such company or companies or $125,000,000. ; and (D) by amending clause (iii) to read as follows: (iii) Prospective applicability An investment by a licensee is eligible for exclusion from the calculation of outstanding leverage under clause (i) only if such investment is made by such licensee after the date of enactment of the Investing in All of America Act of 2023 ; and (3) by adding at the end the following new subparagraphs: (E) Annual adjustment The Administrator shall adjust the dollar amounts described in subparagraphs (A) and (B)— (i) on the date of the enactment of this subparagraph, by a percentage equal to the percentage (if any) by which the Consumer Price Index (all items; United States city average), as published by the Bureau of Labor Statistics, increased during the period— (I) beginning on December 18, 2015, and ending on the date of the enactment of this subparagraph, for subparagraph (B); and (II) beginning on June 21, 2018, and ending on the date of the enactment of this subparagraph, for subparagraph (A); and (ii) on the date that is one year after the date of the enactment of this subparagraph, and annually thereafter, by a percentage equal to the percentage (if any) by which the Consumer Price Index (all items; United States city average), as published by the Bureau of Labor Statistics, increased during the one-year period preceding the date of the adjustment under this clause. . (c) Report Not later than June 30 of the first year beginning after the date of the enactment of this Act, and annually thereafter, the Administrator of the Small Business Administration shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report on the results of the exclusion under subparagraph (C) of section 303(b)(2) of the Small Business Investment Act of 1958 ( 15 U.S.C. 683(b)(2) April 26, 2024 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

Summary: Investing in All of America Act of 2023This bill modifies the limit on the amount of financing available to a Small Business Investment Company (SBIC) from the Small Business Administration (SBA). It also expands the definition of private capital with respect to SBICs.Specifically, the bill reduces the maximum outstanding financing available to an SBIC from 300% to 200% of the SBIC's private capital. The bill also includes in the amounts that may be excluded from the calculation of the financing limit the amounts an SBIC invests in small businesses in rural areas or areas of critical technology. The bill revises the cap on such excluded amounts to the lesser of $125 million or the aggregate of 50% of the private capital of the SBIC. The bill indexes the limit to inflation.Additionally, the bill expands what is considered the private capital of an SBIC to include funds obtained from the business revenue of additional government-sponsored corporations and funds invested in the trust or endowment of a college or university.The SBA must report annually on the economic activity and jobs directly and indirectly resulting from the exclusion.