Section 1. Short title

This Act may be cited as the Investments in Innovation Act of 2025.

Sec. 2. Investments in socially and economically disadvantaged small businesses

Section 303(b)(2) of the Small Business Investment Act of 1958 (15 U.S.C. 683(b)(2)) is amended by adding at the end the following new subparagraph:

(E) Investments in socially and economically disadvantaged small businesses

(i) In general

Subject to clause (ii), in calculating the outstanding leverage of a company for the purposes of subparagraph (A), the Administrator shall exclude the amount of the cost basis of any equity investment made by the company in a smaller enterprise that is a socially and economically disadvantaged small business concern (as defined in section 8(a)(4) of the Small Business Act (15 U.S.C. 637(a)(4))), to the extent that the total of such amounts does not exceed 50 percent of the company's private capital.

(ii) Limitation

The maximum amount of outstanding leverage made available to—

(I)

any 1 company described in clause (iii) may not exceed the lesser of 300 percent of private capital of the company, or $175,000,000; and

(II)

2 or more companies described in clause (iii) that are under common control (as determined by the Administrator) may not exceed $250,000,000.

(iii) Company described

A company described in this clause is a company licensed under section 301(c) in the first fiscal year after the date of enactment of this clause or any fiscal year thereafter that certifies in writing that not less than 50 percent of the dollar amount of investments of that company shall be made in entities that are socially and economically disadvantaged small business concerns (as defined in section 8(a)(4) of the Small Business Act (15 U.S.C. 637(a)(4))).