S. 1917: Investing in All of America Act of 2025

The Investing in All of America Act of 2025 proposes amendments to the Small Business Investment Act of 1958. The key objectives of the bill are as follows:

1. Exclusion of Certain Investments from Leverage Limits

The bill allows certain investments made by small business investment companies (SBICs) in smaller enterprises located in rural or low-income areas and in critical technology sectors to be excluded from leverage limits. This means that these SBICs can borrow more money to invest in these targeted areas without it counting against their overall borrowing limits.

2. Definitions and Scope

To facilitate these investments, the bill updates the definitions relevant to which businesses qualify for the leverage exclusion. Notably:

• It modifies eligibility criteria to include foundations, endowments, or trusts linked to colleges or universities.
• The definition of qualifying businesses is broadened to include small manufacturers and companies in critical technology areas.

3. Changes to Maximum Leverage Amounts

The act proposes to decrease and adjust certain maximum leverage thresholds. Key changes include:

• The maximum leverage that can be obtained by companies making quarterly or semiannual interest payments is reduced from $300 million to $200 million.
• For other companies, the new maximum will be $175 million, which reflects a reduction that aligns with adjustments addressing inflation.
• The limit of $350 million for well-controlled companies is also revised in a similar manner.

4. Adjustments for Inflation

The bill mandates that the maximum leverage amounts be adjusted annually based on inflation, specifically using the Consumer Price Index. This ensures that these amounts stay relevant over time as inflation impacts dollar value.

5. Limitations on Exclusions

While the bill allows for these exclusions, it also sets limits on how much can be excluded from a company’s overall leverage calculations. Specifically:

• The amount excluded for qualifying companies cannot exceed the lesser of 50% of their private capital or $125 million.

6. Implementation Timeline

The provisions regarding exclusions from the leverage calculations will apply only to investments made after the bill's enactment. This means that only new investments, rather than past investments, will benefit from these changes.

Relevant Companies

• SQ (Block, Inc.): As a company focusing on technology solutions for small businesses, alterations in investment criteria could influence its operations and partnerships.
• LMND (Lemonade, Inc.): Investing in startups in critical tech areas could affect insurance underwriting and risk assessment products.
• INTC (Intel Corporation): If categorized under small technology enterprises, it may engage more vigorously in local investments due to leveraged funding opportunities.