Investing in Main Street Act of 2025
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Would raise the cap on how much a banking entity can invest in small business investment companies (SBICs) — federally licensed funds that channel capital to small businesses — from 5% to 15% of the bank's capital and surplus.
The change would give banks more flexibility to direct money toward small businesses through the SBIC program, potentially expanding a key source of growth capital for Main Street enterprises.
What this bill would do
What it would do
The bill would amend the Small Business Investment Act of 1958 to raise the ceiling on how much a banking entity may invest in small business investment companies (SBICs), or in entities established solely to invest in SBICs, from 5% to 15% of the bank's capital and surplus. The change applies to both of the relevant paragraphs in Section 302(b) of that Act.
The bill makes no other change to existing law. It does not alter how SBICs are licensed, regulated, or operated; it simply triples the share of a bank's capital that may flow into the SBIC program.
Key provisions
- 1Would raise the cap on banking entity investments in SBICs or SBIC holding entities from 5% to 15% of capital and surplus under paragraph (1) of Section 302(b)
- 2Would apply the same 15% cap increase to paragraph (2) of Section 302(b), covering the same investment category under a parallel provision
Who would be affected
Banking entities subject to the Small Business Investment Act of 1958 that invest — or wish to invest — in SBICs or SBIC holding entities, SBIC fund managers who would gain access to a larger pool of bank capital, and small businesses that receive equity or debt financing through the SBIC program.
Why it matters
By tripling the investment ceiling, the bill would allow banks to put significantly more money into SBIC funds without breaching their legal limit. Small businesses that rely on SBIC financing could see more capital available to them, while banks with appetite for SBIC exposure would no longer be constrained to the existing 5% cap.
What would change
Changes to existing law
Amends Small Business Investment Act of 1958 (Sec. 2)
Strikes '5 percent' and inserts '15 percent' in both paragraphs (1) and (2) of Section 302(b), tripling the allowed investment cap in SBICs.
How implementation would work
The amendment is self-executing — it changes two numerical figures in existing statute and requires no rulemaking, reporting, or agency action to take effect. Banking entities and their regulators would apply the new 15% ceiling under the same framework that currently governs SBIC investment limits.
Legislative status & sources
Latest action
Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Official CRS summary
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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%.
Legislative subjects
Bank accounts, deposits, capital; Banking and financial institutions regulation; Business investment and capital; Commerce; Small business