SBIA Applauds Senate Introduction of Investing in Main Street Act
Legislation would ensure that small and mid-sized businesses across the country can access the capital they need to compete and grow.
WASHINGTON, DC (July 10, 2025) – The Small Business Investor Alliance (SBIA) commends U.S. Senators Todd Young (R‑IN), Ruben Gallego (D‑AZ), James Risch (R-ID) and Tammy Duckworth (D-IL) for introduction of the Investing in Main Street Act of 2025. The legislation would amend the Small Business Investment Act of 1958 to align banking and small business investment laws.
Specifically, the bill would enable banks and federal savings associations to invest up to 15% of their capital and surplus into Small Business Investment Companies (SBICs), a marked increase from the current 5% cap, correcting a long-standing statutory inconsistency between bank law and small business investment law. By addressing this regulatory roadblock, the legislation will empower small businesses to access the funding they need to create jobs, innovate, and drive economic growth in their communities.
“This bill offers a smart solution to an accidental regulatory barrier that limits investment in American small businesses,” said SBIA President Brett Palmer. “By updating outdated regulations, this legislation will help funnel vital funding into our nation’s small businesses – economic engines that drive two-thirds of U.S. job creation. We thank Senator Young, Senator Gallego, Senator Risch and Senator Duckworth for their leadership and urge swift Senate passage.”
Key Facts
- House bill H.R. 754 passed unanimously in the House on February 24, 2025.
- This reform fixes conflicting laws that currently limit investments into SBICs, allowing banks and federal savings associations to invest up to 15% of their capital and surplus into SBICs.
- By aligning banking and small business investment laws, the bill resolves outdated regulatory inconsistencies that have restricted capital flow to SBICs – without costing taxpayers a dime.
- Passage would permit banks to deploy significantly more capital into SBICs, powering small business growth, job creation, and innovation nationwide.
SBIA urges the Senate to advance this legislation quickly to ensure that small and mid-sized businesses across the country can access the capital they need to compete and grow.
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What is an SBIC?
SBICs are federally licensed, privately managed investment funds that provide patient, flexible capital to qualifying small businesses. With more than 300 active SBICs managing over $43 billion in capital, the program has a long track record of success in supporting businesses in manufacturing, healthcare, technology, and services sectors. SBIC-backed businesses have created or sustained millions of jobs and contributed to the growth of countless industries.
About the Small Business Investor Alliance (SBIA)
The Small Business Investor Alliance (SBIA) is the premier organization of lower middle market private equity funds and investors. SBIA works on behalf of its members as a tireless advocate for policies that promote competitive markets and robust domestic investment for growing small businesses. SBIA has been playing a pivotal role in promoting the growth and vitality of the private equity industry for over 60 years. For more information, visit www.SBIA.org or call (202) 628-5055.
