Investing in All of America Act of 2023
Floor Speech
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Mr. WILLIAMS of Texas. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 5333) to amend the Small Business Investment Act of 1958 to exclude from the limit on leverage certain amounts invested in smaller enterprises located in rural or low-income areas and small businesses in critical technology areas, and for other purposes, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows: H.R. 5333
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE.
This Act may be cited as the ``Investing in All of America Act of 2023''. SEC. 2. SBIC MAXIMUM LEVERAGE EXCLUSION.
(a) Definitions.--Section 103(9) of the Small Business Investment Act of 1958 (15 U.S.C. 662(9)) is amended--
(1) in subparagraph (A)(ii), by striking ``and'' at the end;
(2) in subparagraph (B)(iii)--
(A) in subclause (I), by striking ``established prior to October 1, 1987'';
(B) in subclause (II)--
(i) by striking ``or'' and inserting ``,''; and
(ii) by inserting ``, or a foundation, endowment, or trust of a college or university'' after ``pension plan''; and
(C) in subclause (III), by striking the semicolon at the end and inserting ``; and''; and
(3) by adding at the end the following new subparagraph:
``(C) does not include any funds obtained directly or indirectly from any Federal, State or local government or any government agency or instrumentality, except for funds described in subclauses (I) through (III) of subparagraph (B)(iii), for the purpose of approval by the Administrator of any request for leverage.''.
(b) In General.--Section 303(b)(2) of the Small Business Investment Act of 1958 (15 U.S.C. 683(b)(2)) is amended--
(1) in subparagraph (A)(i), by striking ``300'' and inserting ``200'';
(2) in subparagraph (C)--
(A) in the heading--
(i) by inserting ``or rural'' after ``low-income''; and
(ii) by inserting ``or critical technology areas'' after ``geographic areas'';
(B) in clause (i)--
(i) by striking ``(i) In calculating'' and inserting the following:
``(i) In general.--Except as provided in clause (iii), in calculating'';
(ii) by inserting ``or companies'' after ``of a company'';
(iii) by striking ``subparagraph (A)'' and inserting ``subparagraphs (A) and (B)'';
(iv) by striking ``equity'';
(v) by striking ``the company in a smaller enterprise'' and all that follows and inserting the following: ``the company or companies in--
``(I) a smaller enterprise located in a low-income geographic area (as defined in section 689 of this title) or in a rural area; or''; and
(vi) by adding at the end the following new subclause:
``(II) a small business concern in an area of critical technology (as defined in section 4801 of title 10, United States Code) vital to maintaining the national security of the United States.'';
(C) by amending clause (ii) to read as follows:
``(ii) Limitation.--While maintaining the limitation of subparagraph (A)(i) and consistent with a leverage determination ratio issued pursuant to section 301(c), the aggregate amount excluded for a company or companies under clause (i) from the calculation of the outstanding leverage of such company or companies for the purposes of subparagraphs (A) and (B) may not exceed the lesser of 50 percent of the private capital of such company or companies or $125,000,000.''; and
(D) by amending clause (iii) to read as follows:
``(iii) Prospective applicability.--An investment by a licensee is eligible for exclusion from the calculation of outstanding leverage under clause (i) only if such investment is made by such licensee after the date of enactment of the Investing in All of America Act of 2023.''; and
(3) by adding at the end the following new subparagraphs:
``(E) Annual adjustment.--The Administrator shall adjust the dollar amounts described in subparagraphs (A) and (B)--
``(i) on the date of the enactment of this subparagraph, by a percentage equal to the percentage (if any) by which the Consumer Price Index (all items; United States city average), as published by the Bureau of Labor Statistics, increased during the period--
``(I) beginning on December 18, 2015, and ending on the date of the enactment of this subparagraph, for subparagraph (B); and
``(II) beginning on June 21, 2018, and ending on the date of the enactment of this subparagraph, for subparagraph (A); and
``(ii) on the date that is one year after the date of the enactment of this subparagraph, and annually thereafter, by a percentage equal to the percentage (if any) by which the Consumer Price Index (all items; United States city average), as published by the Bureau of Labor Statistics, increased during the one-year period preceding the date of the adjustment under this clause.''.
(c) Report.--Not later than June 30 of the first year beginning after the date of the enactment of this Act, and annually thereafter, the Administrator of the Small Business Administration shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report on the results of the exclusion under subparagraph (C) of section 303(b)(2) of the Small Business Investment Act of 1958 (15 U.S.C. 683(b)(2)), as amended by subsection (a), including the economic activity generated and jobs directly and indirectly created by the exclusion.
Mr. Speaker, we all know small businesses are the backbone of the American economy. Main Street employs nearly half of all Americans and the vast majority of businesses in the United States are small businesses.
As we kick off this year's National Small Business Week, I can think of no better way to pass H.R. 5333, the Investing in All of America Act, introduced by Representatives Meuser and Scholten.
Small businesses are faced with constant challenges when it comes to accessing capital. With burdensome regulations and high-interest rates, banks are being forced to tighten their lending standards, forcing small business owners to pay higher prices for much-needed funds.
Unlike large corporations, small businesses don't share the luxury of utilizing debt and equity markets for financing. Main Street America is instead forced to bridge the funding gap and return to resources like the SBIC program, where Federal funding is matched with experienced private investors to invest in small businesses.
The program has been successful in the early-stage funding of several companies that have gone on to become household names, such as Apple and Tesla, among others. However, often overlooked are investments in rural areas, including investment in American-made military technology. This is where H.R. 5333 comes in, making thoughtful improvements to ensure that the SBIC program continues to be an essential part of helping small businesses navigate the current economic challenges and increase avenues to access capital.
This program has never cost taxpayers any money and has always been seen as a positive return on investment. These commonsense changes will allow more businesses to access critical funding without increasing the risk of the government losing money.
Mr. Speaker, I urge my colleagues to support H.R. 5333, and I reserve the balance of my time.
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Mr. WILLIAMS of Texas. Mr. Speaker, I am prepared to close, and I reserve the balance of my time.
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Mr. WILLIAMS of Texas. Mr. Speaker, I urge my colleagues to support this commonsense legislation that will provide more opportunities for our Nation's job creators to access capital. I once again thank Representatives Meuser and Scholten for bringing this solution to the table, and I yield back the balance of my time.
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