Small Business Investment Company Modernization Act of 2011

Small Business Investment Company Modernization Act of 2011 - Amends the Small Business Investment Act of 1958 to increase the maximum amount of outstanding leverage that the Small Business Administration (SBA) is authorized to make available to any one small business investment company (SBIC), as a condition to the SBA's purchase or guarantee of debentures or participating securities issued by certain licensed SBICs, if a majority of the managers of a company are experienced in managing at least one such SBIC. Increases the maximum leverage amount for such SBICs to the lesser of: (1) 300% of such company's private capital, or (2) $200 million. (Current law, subject to exceptions, prohibits the maximum amount of such leverage from exceeding the lesser of 300% of private capital or $150 million for any SBIC.)

Increases to $350 million (currently, $225 million) the maximum amount of outstanding leverage that may be made available to two or more SBICs that are commonly controlled and not under capital impairment. Prohibits the material capital impairment of one licensed company in a group under common control from reducing the maximum amounts of outstanding leverage that is made available to the other licensed companies in that group.