U.S. Senators Roger Marshall from Kansas and John Hickenlooper from Colorado have introduced the Investing in All of America Act of 2025. This bipartisan legislation aims to increase access to capital for small businesses, particularly those located in rural and low-income areas, as well as in the manufacturing and critical technology sectors.
The proposed bill seeks to enhance the function of Small Business Investment Companies (SBICs), which are privately managed firms licensed by the Small Business Administration (SBA). These companies raise private capital and supplement it with SBA-backed funds to invest in American small businesses. Currently, SBICs face a leverage cap that restricts the amount of SBA-backed capital they can access relative to their private capital.
The new legislation proposes an exemption from this leverage cap for investments made in rural or low-income communities, along with those in manufacturing and critical technology sectors. This change is intended to facilitate increased capital flow into areas that traditionally have limited access, thereby supporting industries crucial for U.S. competitiveness.
Senator Marshall stated, “Access to capital is essential for small businesses to grow and thrive, but far too often, rural and low-income communities across Kansas are left behind.” He emphasized that excluding these investments from the SBIC leverage cap encourages necessary targeted investment without taxpayer expense.
Senator Hickenlooper added, “Small businesses are the engine of our economy,” noting that they frequently struggle to secure necessary funding for job creation. He expressed hope that this bipartisan bill will enable small businesses in underserved areas to prosper.
The Small Business Investor Alliance (SBIA) supports this legislation. SBIA President Brett Palmer remarked, “This legislation is a practical step toward revitalizing American manufacturing and ensuring small businesses have the capital they need to grow.” He highlighted its potential impact on economic competitiveness by unlocking additional private investment in key sectors without cost implications.
The full text of the proposed legislation is available online.
