Sec. 100401. Increasing equity investment in the SBIC program

663 words·~3 min read·/bill/117/hr/5376/eh/section-100401

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In addition to amounts otherwise available, there is appropriated to the Small Business Administration for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $20,000,000, to remain available until September 30, 2031, for carrying out this section. The Small Business Investment Act of 1958, is amended— in section 103 ( 15 U.S.C. 662 )— in paragraph (9)(B)(iii)— in subclause (II), by striking and at the end; in subclause (III), by adding and at the end; and by adding at the end the following: funds obtained from any financial institution identified under section 302(b); ; and in paragraph (13)(C), by striking in an aggregate amount that does not exceed 33 percent of the private capital of the applicant or licensee ; and in section 304 ( 15 U.S.C. 684 ), by adding at the end the following:

Notwithstanding section 310(c)(6), a licensee under section 321 may, subject to rules to be issued by the Administration, invest equity capital in investment funds that— are majority controlled by members of an underrepresented community, as defined in section 49 of the Small Business Act; receive annual assistance provided by such licensee; or meet additional criteria as determined by the Administration. ; and by adding at the end of the following: In this section: The term covered investments means investments in— infrastructure, including— roads, bridges, and mass transit; water supply and sewer; the electrical grid; broadband and telecommunications; clean energy; or child care and elder care; manufacturing; low-income communities, as that term is defined in section 45D(e) of the Internal Revenue Code of 1986;

HUBZones, as defined in section 31(b) of the Small Business Act; small business concerns owned and controlled by a member of an Indian tribe individually identified (including parenthetically) in the most recent list published pursuant to section 104 of the Federally Recognized Indian Tribe List Act of 1994; small business concerns owned and controlled by an individual with a disability, as defined in section 3 of the Americans with Disabilities Act of 1990; small business concerns owned and controlled by a veteran; or industries identified by the Administrator.

The term emerging manager company means an investment management firm that is focused on investing private equity and that meets not less than 2 of the following criteria: The partners of the firm have— an investment track record of less than 10 years of combined investment experience; or a documented record of successful business experience. The firm has a focus on underserved markets. The firm is not less than 50 percent owned, managed, or controlled by members of an underrepresented community (as defined in section 49 of the Small Business Act).

The Administrator shall establish an emerging managers program pursuant to which managers with substantial experience in operating small business investment companies— may enter into a written agreement approved by the Administrator to provide guidance and assistance to an applicant for a license for a small business investment company that is to be managed by an emerging manager company; and may hold a minority financial interest in the small business investment company described in paragraph (1).

An applicant described in subsection (b)(1) shall apply for a license under section 301(c) and shall— have private capital not to exceed $100,000,000; be managed by not less than two individuals; be a second generation fund or earlier; and focus its investment strategy on covered investments. The approval of a written agreement under subsection

(b)by the Administrator shall operate as a waiver of the requirements of section 303(b)(2)(B) to the extent that such section would otherwise apply. An existing small business investment company that enters into a written agreement under subsection

(b)may receive an increase in the maximum leverage cap of the company under section 303(b)(2)— under subparagraph

(A)of such section, with respect to a single license, by not more than $17,500,000; and under subparagraph

(B)of such section, with respect to multiple licenses under common control, by not more than $35,000,000. .

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15 USC 662
15 USC 684

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Sec. 100401

Increasing equity investment in the SBIC program

Cite15 USC 662

Cite15 USC 684

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