Reps. Meuser and Scholten Introduce Bill to Encourage Private Capital Investment in Rural and Low-Income Areas

Washington, D.C. – Recently, Congressman Dan Meuser (R-PA) and Congresswoman Hillary Scholten (D-MI) introduced H.R. 5333, the Investing in All of America Act of 2023, which would increase capital available to 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 companies that are licensed and regulated by the Small Business Administration (SBA). SBICs raise private capital that is then matched with leverage by the SBA. SBICs then deploy their private funds, along with the SBA-guaranteed funding, to invest directly in small businesses. The SBIC program operates at a zero-subsidy cost to the American taxpayer. In other words, taxpayer funds are not utilized to support credit extended in SBIC investments. Though the SBIC Program has been successful in responsibly deploying capital to small businesses, recent studies have shown that less than 20% of SBIC investment reaches low-middle income communities – the Investing in All of America Act seeks to encourage the deployment of more capital in these areas.

To incentivize the deployment of additional capital to underserved communities, this legislation would not count dollars invested in rural and/or low-income areas or in the national security technologies sector against SBIC’s leverage cap, allowing much needed additional capital to flow into these areas. 

Congressman Meuser said, “Access to capital is often cited by small businesses as among their greatest challenges, particularly those in rural or low-income areas. By providing bonus leverage within the SBIC Program for investments in rural and low-income areas, we will help drive greater investments into these often-underserved communities. This bill will not only benefit entrepreneurs, but it will also benefit the economy as a whole in eastern central Pennsylvania and in similar regions throughout the United States. This bipartisan bill supports the backbone of America, and I’m grateful Congresswoman Scholten has joined me in introducing it.”

Congresswoman Scholten said, “The SBIC program has a proven track record of providing critical capital to small businesses. Our bipartisan bill will bolster the SBIC program’s long history of success as a zero-subsidy public-private partnership by encouraging investments in rural areas and industries that are vital to national defense here in West Michigan and across the country.”

Small Business Investor Alliance President Brett Palmer said, “This is smart policy that will help small businesses in underserved parts of the country access growth capital.”

Text of the bill can be found here.

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