S. 3341: Investing in All of America Act of 2025

The "Investing in All of America Act of 2025" is designed to modify existing laws governing small business investments in the United States, specifically through the Small Business Investment Act of 1958. Its main intention is to promote investment in smaller enterprises located in rural or low-income areas, as well as those engaged in critical technology sectors.

Key Provisions of the Bill

1. Exclusion from Leverage Limits

The bill suggests changes to how leverage—essentially borrowed funds that investment companies can use—is calculated for small businesses. Several key points are included in these changes:

• It will allow certain investments made in smaller enterprises in rural or low-income areas to be excluded from the calculation of leverage limits.
• Investments made by colleges or universities (including their foundations or endowments) would be categorized differently, potentially making it easier for these institutions to invest in small businesses.
• Specific types of government-funding sources would not count toward the leverage limits when assessing businesses seeking to access these funds.

2. Adjustments to Leverage Limits

The maximum leverage amounts, which dictate how much a small business investment company can borrow compared to its capital, would be adjusted:

• The current maximum leverage amount of 300% would be reduced to 200%, making the lending more conservative.
• For investment companies making regular interest payments, the limits on leverage would increase, allowing up to $475 million for companies that meet specific criteria.
• For other companies licensed under specific sections of the Small Business Investment Act, borrowing limits would also be adjusted, allowing up to $350 million.

3. Focus on Rural, Low-Income, and Technology Areas

In its application, the bill emphasizes support for:

• Small businesses located in low-income geographic areas, as defined by existing legislation.
• Small manufacturers and those operating in crucial technology areas, delineating a focus on sectors deemed important for future growth and innovation.

4. Future Applicability

Lastly, a stipulation is included that requires any investments that would be eligible for these new leverage calculations to occur after the enactment of the bill, which ensures that the benefits of this act are not retroactive.

Overall Impact

The bill aims to create more favorable conditions for small businesses in underserved areas and critical technology sectors by providing access to additional capital while adjusting existing rules that govern how such capital is secured and used. By redefining leverage limits and focusing investment criteria, the legislation seeks to encourage economic growth and innovation in regions that might not otherwise receive significant investments.

Relevant Companies

• None found