The U.S. House passed the Small Business Investment Expansion Act last week by a vote of 325 to 72. Congressman Sam Graves, who represents Northwest Missouri, helped write that bill three years ago with Rep. Jason Altmire, a Pennsylvania Democrat.

The Missouri Republican predicts the bill, if it can clear the Senate, will help small companies get investment capital more easily.

“American innovation is what drives this country and its economy,” Mr. Graves said on the House floor Thursday. “As members of Congress, we need to create an environment that will keep American innovation at the forefront of the global market.”

The bill updates a law put in place in 1958. That legislation limited the Small Business Administration program to companies with no more than 500 employees. The guideline included workers in all affiliates. As new companies seek venture capital today, adding affiliated workers to the formula, often with no tie to the start-up, creates a punitive cap.

The new language will exclude the employees of these private investors when determining the size of a small business, according to the congressman. The bill also revises the New Markets Venture Capital program, which focuses on economic development in low-income communities. It also creates more incentives for investment in small manufacturing companies.

The updated law is designed to help businesses with emerging technologies specifically move their product from the research phase to the market phase.