Senator Jon Husted (R-Ohio) has announced his support for the bipartisan Investing in All of America Act, a bill aimed at increasing access to capital for small businesses in rural and low-income communities. The legislation is co-sponsored by Senators Roger Marshall (R-Kan.) and John Hickenlooper (D-Colo.).
The proposed law seeks to enhance the role of Small Business Investment Companies (SBICs), which are privately managed firms licensed by the Small Business Administration (SBA). These companies raise private capital and combine it with SBA-backed funds to invest in American small businesses. Currently, SBICs face a leverage cap that limits the amount of SBA-backed capital they can use based on their private capital.
The Investing in All of America Act would exempt investments made in rural or low-income areas, as well as those targeting manufacturing and critical technology sectors, from this leverage cap. Supporters say this change will allow more funding to reach underserved regions and help grow industries important for U.S. competitiveness.
“Small businesses are the backbone of our economy, and Small Business Investment Company-backed businesses have generated more than 3 million new jobs over the last 20 years. This bill would expand access to capital for Ohio small businesses in rural and low-income regions to ensure there is a pathway to growth and prosperity for people and businesses in every corner of our state,” said Husted.
Senator Marshall added, “Access to capital is essential for small businesses to grow and thrive, but far too often, rural and low-income communities across Kansas are left behind. By excluding investments in these communities from the leverage that SBICs can access, we’re encouraging targeted investment where it’s needed most, all without costing taxpayers a dime.”
Hickenlooper stated, “Small businesses are the engine of our economy. But they often struggle to get the capital they need to create jobs. Our bipartisan bill will help small businesses in rural and low-income communities flourish.”
The full text of the bill is available online.
