Congressman Meuser’s Legislation to Encourage Private Capital Investment in Rural and Low-Income Areas Passes in Committee

WASHINGTON, D.C.- Today, legislation introduced by Representatives Dan Meuser (R-PA) and Hillary Scholten (D-MI), H.R. 5333, the Investing in All of America Act of 2023, unanimouslypassed in the House Small Business Committee. This legislation would incentivize greater private capital investments in small businesses, particularly those in rural or low-income areas, and those operating in the national security sector.

Small Business Investment Companies (SBICs) are privately owned firms regulated by the Small Business Administration (SBA). SBICs raise private capital, which is matched with leverage by the SBA. This combined capital is then invested directly into small businesses. Importantly, the SBIC program operates without taxpayer subsidy, meaning taxpayer funds are not used to support credit extended in SBIC investments.

Over the past two decades, SBIC-backed businesses have generated 3 million new jobs and supported an additional 10.5 million jobs. Last year alone, SBICs injected more than $8 billion into small businesses nationwide, with $412.3 million directed towards Pennsylvania small businesses. Despite these successes, recent studies indicate that less than 20% of SBIC investment reaches low to middle-income communities. The Investing in All of America Act aims to address this gap and encourage more equitable distribution of investment capital.

The bonus leverage in this legislation doesn't alter the cost or risks of the SBIC program, maintaining its successful private capital ratio to SBA leverage, without taxpayer subsidy. Additionally, the legislation adjusts SBIC leverage caps to keep pace with inflation. By reinstating the inflation adjuster, we ensure SBICs' investment power stays aligned with market trends, enabling continued support for small businesses.

Congressman Dan Meuser said, "As someone who spent more than 20 years helping grow a small business into a larger business, I understand the struggle small businesses face securing capital. Persistent inflation and rising interest rates have only made accessing capital more difficult for small businesses in Pennsylvania and across the country. By implementing additional bonus leverage within the SBIC Program, this legislation incentivizes investment and supports economic growth in often-underserved communities. My bill is not just about supporting small businesses; it's about bolstering the economic growth and revitalization in eastern central Pennsylvania and similar regions nationwide. I urge my colleagues to support this bipartisan effort, which will help grow America's small businesses."

H.R. 5333, the Investing in All of America Act of 2023 was reported favorably by the Small Business Committee by a vote of 23-0. The legislation now awaits further consideration by the full House of Representatives.

Text of the legislation can be found here.

Congressman Meuser spoke in favor of his legislation during the Small Business Committee Markup. That video can be found here.

Representatives Hillary Scholten (MI-03), Don Davis (NC-01), Mark Alford (MO-04), Young Kim (CA-40), Zachary Nunn (IA-03), Blaine Luetkemeyer (MO-03), Sharice Davids (KS-03), Josh Gottheimer (NJ-05), Andy Barr (KY-06), Greg Landsman (OH-01), Andrew Garbarino (NY-02), Erin Houchin (IN-09), Byron Donalds (FL-19), and Nick LaLota (NY-01) are cosponsors of the Investing in All of America Act.

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