H.R. 2066: Investing in All of America Act of 2025

This bill, known as the Investing in All of America Act of 2025, aims to amend the existing Small Business Investment Act of 1958 to facilitate greater investment in small businesses located in rural or low-income areas, as well as those engaged in critical technology sectors. Here are the key changes proposed in the bill:

Changes to Investment Limits

The bill proposes to exclude certain investments from the leverage limits imposed on small business investment companies. This means that funds invested in smaller enterprises that are situated in:

• Rural areas
• Low-income geographic areas
• Critical technology sectors

will not count towards the overall leverage limitations that these investment companies face.

Exclusion of Specific Fund Sources

The amended legislation specifies that funds involved in these investments should not include money from any government entities, aside from specific permissible sources mentioned in the bill.

Adjustments to Leverage Calculation

Currently, the maximum leverage for small business investment companies is set at a ratio of 300%. This bill proposes a reduction of this limit to 200%. Furthermore, the criteria for small business investment calculation will expand to include:

• Small businesses in defined low-income or rural areas
• Small businesses in critical technology areas
• Small manufacturers

Investment Eligibility and Conditions

To benefit from these adjustments, an investment must be made after the enactment of the bill. Additionally, there will be provisions for annual adjustments based on the Consumer Price Index to ensure the limits remain relevant over time.

Impact on Small Business Investment Companies

The changes could encourage investment in specified areas more aggressively by lowering the barriers posed by leverage limitations. This might result in an increase in funding for small businesses in targeted locations, promoting growth in these often underserved markets.

Relevant Companies

• PLTR - Palantir Technologies may be impacted due to its involvement in critical technology sectors, enabling access to funding under the new conditions.
• AMD - Advanced Micro Devices, being a player in technology, might benefit from increased investments in small tech businesses supported by this bill.
• NVDA - Nvidia's engagements with small tech enterprises could see benefits from relaxed leverage limits encouraging more investment in areas of innovation.