[Congressional Record Volume 170, Number 73 (Monday, April 29, 2024)]
[House]
[Pages H2639-H2642]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                INVESTING IN ALL OF AMERICA ACT OF 2023

  Mr. WILLIAMS of Texas. Mr. Speaker, I move to suspend the rules and

[[Page H2640]]

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.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Texas (Mr. Williams) and the gentlewoman from New York (Ms. Velazquez) 
each will control 20 minutes.
  The Chair recognizes the gentleman from Texas.


                             General Leave

  Mr. WILLIAMS of Texas. Mr. Speaker, I ask unanimous consent that all 
Members may have 5 legislative days in which to revise and extend their 
remarks and include extraneous material on the bill.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Texas?
  There was no objection.
  Mr. WILLIAMS of Texas. Mr. Speaker, I yield myself such time as I may 
consume.
  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.
  Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I am pleased to be here today as we celebrate National 
Small Business Week.
  More than 60 years ago, President John F. Kennedy first enacted a 
proclamation to celebrate small businesses, and every year since then 
our country has honored the contributions of small business owners all 
throughout the country.
  Small businesses employ roughly half of the private workforce, create 
the majority of new jobs, and generate almost half of our Nation's 
economic activity. They are the heart and soul of communities. Whether 
it is our local plumber or contractor, a chef launching a restaurant, 
or a medical professional, they are creating neighborhood jobs and 
reinvesting in the local economies.
  The state of our small business is growing stronger. We have seen 
more than 17 million new businesses start since President Biden took 
office, with the vast majority of those being filled by women, 
including women of color.

[[Page H2641]]

That is good news and gives us a reason to celebrate.
  But more work needs to be done, and today we are considering four 
bipartisan bills that will create additional opportunities for 
entrepreneurs.
  Turning to our first bill, H.R. 5333, as amended, makes statutory 
improvements to the Small Business Investment Company program to 
provide SBICs access to additional leverage when they invest in a small 
business critical to national security or located in a rural or 
underserved community.
  Due to their often capital intensive nature, small businesses 
operating in America's critical technology sector need institutional 
investors with long-term time horizons to raise capital. Yet, due to 
statutory constraints, these investors are often limited in their 
ability to participate in the SBIC program, making it an unsuitable 
option for critical technology innovators to raise capital.
  By providing SBICs with additional leverage flexibility, H.R. 5333 
more appropriately matches the SBIC program with the capital needs of 
this industry. Doing so will enable the SBA and DOD to successfully 
carry out the joint SBIC Critical Technology Initiative.
  At the same time, the evidence demonstrates there continues to be a 
significant lack of private investment in small businesses in rural and 
underserved communities.
  By providing SBICs with additional bonus leverage, we are encouraging 
investment in our communities that need it the most. I thank 
Representatives Scholten and Meuser for their leadership on this bill.
  Mr. Speaker, I reserve the balance of my time.
  Mr. WILLIAMS of Texas. Mr. Speaker, I yield such time as he may 
consume to the gentleman from Pennsylvania (Mr. Meuser).
  Mr. MEUSER. Mr. Speaker, I thank our chairman, Mr. Roger Williams 
from the great State of Texas, for yielding and for his leadership.
  Mr. Speaker, I rise today during National Small Business Week in 
support of H.R. 5333, the Investing in All of America Act of 2023, 
introduced by myself and Representative Scholten. This legislation aims 
to incentivize greater private capital investments in small businesses 
located in rural or low-income areas, and those operating in the 
national security sector by providing additional bonus leverage for 
funds participating in the SBA's SBIC program.
  The Small Business Investment Companies are privately owned companies 
that are licensed and regulated by the SBA. SBICs raise private capital 
that is matched with leverage by the SBA, currently capped at $175 
million for individual licensees. SBICs then deploy these private 
funds, along with the SBA-guaranteed funding, to invest directly in 
small businesses.

  It is important to note that the SBIC leverage operates at zero 
subsidy cost to the American taxpayer. In other words, taxpayer funds 
are not utilized for the credit extended in SBIC investments.
  Throughout the last two decades, SBIC-backed businesses have created 
5 million new jobs and supported an additional 10.5 million jobs. Last 
year alone, SBICs invested over $8 billion in small businesses across 
America, including $412 million in small businesses located in my home 
State, the Commonwealth of Pennsylvania.
  Though, the SBIC program has been very successful in responsibly 
deploying capital to small businesses, recent studies have shown that 
close to 20 percent of the SBIC investment reaches only 20 percent of 
low- to middle-income communities, but with this legislation this 
number will significantly increase.
  The Investing in All of America Act would incentivize the deployment 
of additional capital to small businesses located in rural or low-
income areas as well as small businesses, again, in the national 
security technology sector.
  Dollars invested in these areas will not count against individual 
SBIC's $175 million leverage cap. By creating this incentive, the 
Investing in All of America Act will increase investment for these 
underserved communities.
  It is important to note that the bonus leverage included in this 
legislation does not change the cost or risks of the SBIC program. The 
existing successful private capital ratio to SBA leverage that has kept 
the program operating at no subsidy will remain the same.
  This legislation would also adjust the SBIC leverage caps to account 
for inflation. SBIC leverage caps have not been adjusted since 2015 for 
single licensees and since 2018 for a family of funds. Since the last 
adjustment, as we know, inflation has risen rapidly. As we continue to 
deal with increasing inflation, reinstating the inflation adjuster for 
the leverage cap is necessary to ensure the investment power of the 
SBIC's remain consistent with the broader markets and ensure the 
program can continue to provide small businesses with the capital they 
need.
  Recently, the Subcommittee on Economic Growth, Tax, and Capital 
Access, which I chair, held a hearing examining the SBIC program. In 
addition to discussing the positive effects of the program, we 
discussed the improvements that could be made. I am happy to say that a 
number of the reforms suggested by the witnesses are included in this 
legislation.
  While there is more work to do, this legislation will make a very 
positive impact on those participating in the SBIC program and assist 
them in deploying even more capital to these worthy small businesses.
  Mr. Speaker, I thank Representative Scholten for her partnership on 
this legislation and the bipartisan group of 14 Members who have 
cosponsored it. Again, I thank Chairman Williams and the ranking member 
for their leadership and support of this legislation.
  Mr. Speaker, I encourage a ``yes'' vote.
  Ms. VELAZQUEZ. Mr. Speaker, I yield such time as she may consume to 
the gentlewoman from Michigan (Ms. Scholten), the ranking member of the 
Contracting and Infrastructure Subcommittee.
  Ms. SCHOLTEN. Mr. Speaker, I thank Chairman Williams and Ranking 
Member Velazquez for holding this really important hearing during 
National Small Business Week.
  Mr. Speaker, 99.6 percent, that is the number of businesses in 
Michigan that are considered small businesses. That is nearly 1 million 
small businesses that call our State home.
  As diverse as these businesses are, there is one thing that binds 
them all together. These small business owners consistently tell me 
that access to capital is the number one thing that they need and rely 
on to keep their doors open.
  This is especially true for our small businesses in low-income and 
rural communities.
  That is why this bipartisan bill with my colleague, Dan Meuser, the 
Investing in All of America Act, is so important.
  It will build on the success of the Small Business Investment 
Companies program to ensure that more capital can reach the small 
businesses that need it most. Our legislation will incentivize 
deployment of additional capital by changing how investments are 
counted against the SBIC's leverage cap. In doing so, small businesses 
will be able to access more capital than before, especially those in 
underserved communities, and, as my colleague noted, without costing 
the taxpayers additional dollars.

  Recent studies have shown that less than 20 percent of SBIC funds 
reach low-income and rural communities. That disparity is unacceptable, 
and if we pass this bill we can change this statistic. It is incumbent 
on this body to invest in the people who are investing in our 
communities.
  I am known to say back home that we are bringing boring back to 
Congress. That is what I set out to do every time I come here. 
Oftentimes, this body is not known for that, but it is essential that 
we do this type of bipartisan, unglamorous work that corrects errors in 
our laws that so disproportionately impact the people who need it most.
  This bipartisan solution will address an urgent need in every corner 
of our Nation, and I urge my colleagues to support this much-needed 
bill.
  Mr. WILLIAMS of Texas. Mr. Speaker, I am prepared to close, and I 
reserve the balance of my time.
  Ms. VELAZQUEZ. Mr. Speaker, I yield myself the balance of my time.
  Mr. Speaker, today, under President Biden's leadership, the SBIC 
program

[[Page H2642]]

is making historic investments. In fiscal year 2023, the SBIC program 
provided a record-high $8 billion in investment and collectively 
financed more than 1,200 small businesses and startups resulting in 
over 130,000 jobs.
  H.R. 5333 will build on this monumental success and unleash even 
further investment in America's small firms.
  Innovation is the cornerstone of economic growth and U.S. global 
competitiveness. Most often, the most innovative and disruptive R&D is 
happening in our small business community. H.R. 5333 will encourage 
more SBIC investment in small businesses operating in our innovative 
sector and in rural and underserved areas all over the country.
  Mr. Speaker, I, again, thank Representatives Scholten and Meuser for 
leading this effort. I encourage Members to vote ``yes,'' and I yield 
back the balance of my time.

                              {time}  1545

  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.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Texas (Mr. Williams) that the House suspend the rules 
and pass the bill, H.R. 5333, as amended.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

                          ____________________