Investments in Innovation Act of 2025

This bill modifies how small business investment companies (SBICs) calculate their leverage by allowing them to exclude costs of investing in socially and economically disadvantaged small businesses from their leverage calculations. It applies specifically to SBICs that certify in writing that at least 50% of their investments target such businesses. The exclusion is limited to 50% of a company's private capital, with a maximum leverage cap of $175 million per company or $250 million for related companies under common control. These changes aim to encourage SBICs to direct more capital toward disadvantaged business owners.