Investing in Main Street Act
Increases the amount that small banks can invest in America's small businesses.
5% → 15%
The outdated limit this bill lifts
so more capital can reach small businesses
300+
Active SBICs
managing over $43 billion in capital
2 / 3
New U.S. jobs
created by small businesses
Why This Legislation Is Needed
Small Business Investment Companies (SBICs) are federally licensed, privately managed funds that put patient growth capital into American small businesses. Community banks are one of the biggest sources of the money SBICs invest, but a limit in the Small Business Investment Act is holding that money back.
Only a fraction of what these lenders could put into SBICs actually gets there. The rest is stranded by an outdated number in that small business statute, a number that no longer matches what regulators allow anywhere else. This is not a policy fight. It is an old limit in a small business law that never got reconciled with the rest of the rulebook, and it is costing small businesses real money.
Fix that one number and you potentially triple the capital that SBICs can pull in, straight to the businesses that create two out of every three new jobs in America.
In Simple Terms: What the Bill Actually Does
The Investing in Main Street Act fixes a conflict between two federal laws. The Small Business Investment Act caps how much a lender can invest in an SBIC at 5% of its capital. Regulators already allow up to 15% elsewhere. When two laws disagree, the lower number wins, so SBICs can only draw a third of what is otherwise allowed.
The bill raises that 5% cap in the Small Business Investment Act to 15% and lines the two laws up. That is the whole bill. One number, in one small business statute.
Every investment still needs sign-off from the appropriate federal regulator, and none of the oversight rules change. It does not loosen anything. It removes a contradiction that has been quietly holding capital back from small businesses for decades.
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Unanimous in the House. Bipartisan in the Senate.
- Introduced
- Committee
- Passed the House
- Senate · Pending
| H.R. 754 — House | S. 2223 — Senate | |
|---|---|---|
| Lead Sponsors |
Rep. Judy Chu (D-CA)
Rep. Brad Finstad (R-MN)
Rep. Andrew Garbarino (R-NY)
Rep. LaMonica McIver (D-NJ)
|
Sen. Todd Young (R-IN)
Sen. Ruben Gallego (D-AZ)
Sen. James Risch (R-ID)
Sen. Tammy Duckworth (D-IL)
|
| Status |
Passed the House unanimously on February 24, 2025.
|
Introduced July 10, 2025.
Awaiting Senate action.
|
“This bill offers a smart solution to an accidental regulatory barrier that limits investment in American small businesses. 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.”
Brett Palmer
President, Small Business Investor Alliance
Official statement
Investing in Main Street Act News Feed
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.
Read Full ReleaseHouse Passes Investing in Main Street Act, Advancing Support for Small Businesses
New bipartisan House bill would allow more capital to flow to domestic small businesses.
Read Full ReleaseSBIA expresses support for Senate introduction of the Investing in Main Street Act
The Small Business Investor Alliance expresses strong support for the “Investing in Main Street Act”, bipartisan legislation that is designed to increase investments into American small businesses.
Read Full ReleaseSBIA Expresses Support for Investing in Main Street Act
Bipartisan House bill would allow more capital to flow to small businesses.
Read Full ReleaseSmall Business Investor Capital Access Act
- Introduced
- Committee
- Passed House
- Senate · Pending
The smallest funds carry the same SEC paperwork costs as Wall Street giants because a 2010 threshold was never updated. This bill raises it and ties it to inflation — so more of their money reaches small businesses.
Access to Small Business
Investor Capital Act
- Introduced
- Committee
- Passed House
- Senate · Pending
An SEC disclosure rule counts the same fees twice, making investments in publicly traded small business lenders appear more expensive than they are. This bill ensures investors receive accurate fee information.
Small Business Investor Alliance
529 14th Street, NW, Suite 400
Washington, DC 20045
Phone: 202-628-5055
The Small Business Investor Alliance is the premier organization of lower middle market private equity funds and investors.