Congressman Meuser Bill to Incentivize Private Capital Investments in Underserved Areas Passes House During National Small Business Week

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, passed unanimously in the House of Representatives. This legislation will 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 5 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 toward Pennsylvania small businesses. Despite these successes, recent studies indicate that close to 20% of SBIC investment reaches low to middle-income communities; this legislation aims to significantly increase that number.

The Investing in All of America Act would incentivize the deployment of additional capital to small businesses in underserved communities. Dollars invested in these areas will not count against individual SBIC's $175 million dollar leverage cap. By creating this incentive, the Investing in All of America Act will increase investment in rural and underserved communities by as much as $125 million per SBIC license.

The bonus leverage in this legislation does not 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. Leverage that is matched by the SBA, is currently capped at $175 million dollars for individual licensees. 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 passing my Investing in All of America Act, Congress chooses to incentivize investment and support economic growth in often-underserved communities. My bill is not just about supporting small businesses; it's about bolstering economic growth and revitalization in northeastern and central Pennsylvania, as all as similar regions nationwide. I thank my colleagues for unanimously supporting this legislation, which will help grow America's small businesses."

Small Business Investor Alliance PresidentBrett Palmer said, "This is smart policy that will help small businesses access the capital they need to grow, particularly in underserved parts of the country, without new federal spending, regulations, or mandates."

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 and passed unanimously when considered before the full House of Representatives. The legislation now awaits further consideration by the United States Senate.

Text of the legislation can be found here.

Congressman Meuser spoke in favor of his legislation on the House floor. 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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