The U.S. Senate passed the Investing in All of America Act of 2025 (H.R. 2066) by unanimous consent on April 15, 2026, sending a bipartisan overhaul of the Small Business Investment Company program to the President’s desk. The House had already passed the bill on December 1, 2025.
The legislation amends the Small Business Investment Act of 1958 in four significant ways, all aimed at getting more private capital into the hands of small businesses.
What the bill changes
First, the definition of “private capital” now includes funds from foundations, endowments, and college or university trusts. That means more institutional money can flow into SBIC funds that invest in small businesses.
Second, the maximum leverage for Standard Debenture SBICs shifts from the lesser of 300% of private capital or $175 million, to the lesser of 200% of private capital or $250 million. The percentage drops, but the dollar ceiling rises, which benefits larger, well-capitalized funds.
Third, commonly controlled groups of Standard Debenture SBICs also get higher aggregate leverage limits. Fourth, the bill excludes from leverage calculations investments in small manufacturers, rural or low-income area businesses, and companies in critical technology sectors, up to the lesser of 50% of private capital or $125 million.
SBICs are privately managed investment funds licensed by the Small Business Administration. They raise private capital and then borrow additional money (called “leverage”) from the SBA to invest in American small businesses. In fiscal year 2025, the program reached a record $53 billion in combined private capital and SBA leverage, according to the SBA.
For small business owners, the practical effect is that SBIC fund managers will have more money available to invest, especially in manufacturing, food production, energy, and advanced technology. Businesses in rural and low-income areas stand to benefit most from the leverage exclusions.
Separately, the SBA finalized its own regulatory reforms to the SBIC program, which took effect on February 2, 2026, streamlining licensing and cutting outdated requirements.
The bill now awaits the President’s signature to become law. Business owners looking for growth capital should check in with SBIC fund managers about expanded funding capacity once the legislation is signed.
