Unlocking Capital, Fueling Small Business Investment: SBI Counsel Supports H.R. 5559

SBI recently submitted a letter to the House Committee on Small Business in support of H.R. 5559, the Investments in Innovation Act of 2025, introduced on September 23, 2025, by Representatives Strickland and Smith. This legislation would allow Small Business Investment Companies (SBICs) to exempt certain investments in 8(a) firms from leverage limit calculations, unlocking essential capital for businesses that play a crucial role in expanding economic participation and job creation.

As the SBA's 8(a) Business Development Program has steadily grown over the past decade, it has delivered substantial benefits to the broader economy. In fiscal year 2014, about 4,200 firms participated in the program, supporting approximately 120,000 jobs nationwide. By fiscal year 2023, participation had increased to roughly 5,273 firms, with these businesses supporting over 171,600 jobs—reflecting significant growth in economic impact and employment. According to a 2023 Congressional Research Service report, 8(a) firms contribute an estimated $35 to $40 billion annually to the U.S. GDP.

SBI has served as legal counsel to numerous 8(a) businesses and investors and has seen firsthand the positive ripple effect that increased investment in small business set-aside programs can have on the small business sector and the economy at large. By enabling increased investment in 8(a) firms through H.R. 5559, these businesses will be better positioned to scale operations, create new jobs, invest in infrastructure, and expand into new markets. This targeted support not only strengthens economic output but also promotes competitive participation by empowering businesses and entrepreneurs facing barriers to market entry.

As the House Committee on Small Business continues its important work addressing small business challenges through collaborative efforts that span party lines, SBI encourages the Committee to recommend swift passage of H.R. 5559 to unlock vital investor capital for 8(a) firms and drive broad-based economic growth.