This bill became law on 2026-05-19 as Public Law No. 119-92.
The summary below describes the bill at the version we last reviewed; the enacted text may differ.
YourVoice.Now Summary
Corporate BenefitsSmall-business investment funds now have a lower borrowing cap — but rural, tech, and manufacturing deals don't count toward it.
Corporate Benefits
Money a fund puts into low-income or rural areas, critical technology, or small manufacturers is left out when its borrowing is measured. Before this law, only low-income areas got that treatment.
The old rule counted only ownership stakes a fund bought. Now loans a fund makes in those same places and fields are left out too.
Funds run by the same owners share one dollar ceiling. It is $475 million if they pay interest every three or six months, and $350 million otherwise.
A fund's borrowing power is measured against the private money it raises. Endowments, foundations, and trusts of colleges and universities now count, and a 1987 cutoff date in the same rule was dropped.
A single fund can now borrow up to twice its own capital, down from three times. In dollars, the ceiling is $250 million for funds paying interest every three or six months, and $175 million for others.
There is a limit on how much a fund can leave out. It cannot pass half the fund's own capital, and never more than $125 million.
Money from federal, state, or local government no longer counts as private money when the Small Business Administration reviews a borrowing request. A short list of sources named in the law is still allowed.
More about this bill
Most people will see no change in daily life. The law resets borrowing rules for Small Business Investment Companies. These are private funds that invest in small firms, using money the federal government helps guarantee. Owners of small businesses in rural areas, critical technology fields, or manufacturing may notice it first. Each fund can now borrow up to 200% of its own capital, down from 300%. But money it puts into rural areas, low-income areas, critical technology, or small manufacturers does not count toward that limit. That break is capped at $125 million, or half the fund's own capital, whichever is less. Groups of related funds can now borrow up to $475 million, up from $350 million. That higher cap applies only if they pay interest at least twice a year. Only investments made after May 19, 2026 count for the break.
Congressional Summary
Congress's official summary of this bill still describes an earlier version of the text, so we have left it out here. You can read it on Congress.gov.
Legislative Subjects
Details
- Congress
- 119th
- Chamber
- House
- Status
- summarized
- Action
- Public Law
- Action Date
- 2026-05-19
- Date Added
- 2026-06-26
- Source
- Congress.gov →
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