Investing in Main Street Act of 2025
Key claim: The Investing in Main Street Act of 2025 would let certain banking entities invest up to 15% of their capital and surplus in small business investment companies (SBICs), up from the current 5% limit.
Abstract
(HR754 · 119th Congress) Investing in Main Street Act of 2025 This bill authorizes certain banking entities to invest up to 15% of their capital and surplus in one or more small business investment companies (SBICs) or in any entity established to invest solely in SBICs. The current limit is 5%. Latest action (2025-02-25): Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Why this matters
Raising the SBIC investment cap from 5% to 15% of capital and surplus would materially expand the pool of bank capital available to flow into small business investment companies, a long-standing SBA-licensed channel for small-business equity and debt financing. For banks, this loosens a statutory prudential limit on a specific investment class; for small businesses, it could enlarge the addressable capital supply. The bill is at the introduction stage, so the change is proposed, not final.