Sec. 100402. MicroCap small business investment company license
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/bill/117/hr/5376/rh/section-100402·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
In addition to amounts otherwise available, there is appropriated to the Administration for fiscal year 2022, out of amounts in the Treasury not otherwise appropriated, $40,000,000, to remain available until September 30, 2031, to carry out paragraph
(5)of section 301(c) of the Small Business Investment Act of 1958 ( 15 U.S.C. 681(c) ), as added by subsection (b). Section 301(c) of the Small Business Investment Act of 1958 ( 15 U.S.C. 681(c) ) is amended by adding at the end the following: The Administrator may issue a number of licenses under this subsection to applicants— that do not satisfy the qualification requirements under paragraph (3)(A)(ii) to the extent that such requirements relate to investment experience and track record, including any such requirements further set forth in section 107.305 of title 13, Code of Federal Regulations, or any successor regulation; that would otherwise be issued a license under this subsection, except that the management of the applicant does not satisfy the requirements under paragraph (3)(A)(ii) to the extent that such requirements relate to investment experience and track record, including any such requirements further set forth in section 107.305 of title 13, Code of Federal Regulations, or any successor regulation; for which the fund managers have— a documented record of successful business experience; a record of business management success; or knowledge in the particular industry or business for which the applicant is pursuing an investment strategy; and that have demonstrated appropriate qualifications for the license, based on factors determined by the Administrator. The licensee under this paragraph shall invest not less than 50 percent of the total financings of such licensee in covered investments (as defined in section 321), of which not more than 33 percent of such investments are in small business concerns in infrastructure or manufacturing. The Administrator shall establish policies to ensure the timely disposition and issuance of licenses under this paragraph. A company licensed pursuant to this paragraph shall— not be eligible to receive leverage in an amount that is more than $50,000,000; and be able to access leverage in an amount that is not more than 200 percent of the private capital of the applicant. If a company licensed pursuant to this paragraph has investment committee members or control persons who are principals approved by the Administration or control persons of licensed small business investment companies not licensed under this paragraph, such licensee or licensees shall not be deemed to be under common control with the company licensed pursuant to this paragraph solely for the purpose of section 303(b)(2)(B). In addition to the fees authorized under sections 301(e) and 310(b), the Administration may prescribe fees to be paid by each company designated to operate under this paragraph. .
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Sec. 100402
MicroCap small business investment company license
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