Sec. 3. Rural business investment

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The Small Business Investment Act of 1958 ( 15 U.S.C. 661 et seq. ) is amended— in part A of title III ( 15 U.S.C. 681 et seq. )— in section 303(b)(2) ( 15 U.S.C. 683(b)(2) ), by adding at the end the following: In this subparagraph, the term rural area has the meaning given the term in section 343(a) of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 1991(a) ). In calculating the outstanding leverage of a company for the purposes of subparagraph (A), the Administrator shall not include the amount of the cost basis of any equity investment made by the company in a smaller enterprise located in a rural area if the Administrator, after performing an appropriate evaluation, determines that such an exclusion will not result in additional risk to the Administration or the Federal Government.

The amount excluded under subclause

(I)for a company shall not exceed $25,000,000 in any fiscal year. ; in section 308(g)(3) ( 15 U.S.C. 687(g)(3) )— in subparagraph (D), by striking and at the end; in subparagraph (E), by striking the period at the end and inserting ; and ; and by adding at the end the following: the total number of rural business investment companies, as defined in section 321(a), that received leverage from the Administration under section 321 in the previous year, including the amount of that leverage that each such rural business investment company received. ; in section 310(d)(1)(A) ( 15 U.S.C. 687b(d)(1)(A) ), by inserting (including each rural business investment company that receives leverage under section 321) after Each licensee ; and by adding at the end the following: In this section— the term covered amounts means, with respect to a fiscal year, the amounts made available for that fiscal year to grant leverage under this part to small business investment companies; the term rural business investment company has the meaning given the term in section 384A of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 2009cc ); and the term Secretary means the Secretary of Agriculture. Subject to paragraph (2), if the Administration determines under subsection

(c)that the Administration will be unable to expend all of the covered amounts for a particular fiscal year, the Administration shall expend those unexpended covered amounts for that fiscal year to grant leverage to rural business investment companies for the purposes described in this part if, with respect to that fiscal year, the Secretary determines that the Secretary is unable to grant leverage to rural business investment companies in a manner that is sufficient to satisfy the leverage needs of those rural business investment companies. With respect to leverage granted by the Administration to a rural business investment company under paragraph (1)— the amount of the leverage made available shall be subject to the limitations under section 303(b)(2); for the purposes of subparagraph (A), any leverage granted by the Secretary to the rural business investment company under the program carried out under subtitle H of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 2009cc et seq. ) shall be included when determining the maximum amount of outstanding leverage that may be made available to the rural business investment company under this section; and the Administration, in consultation with the Secretary, shall— impose such terms and conditions with respect to the leverage that the Administration and the Secretary determine to be appropriate; and in developing the terms and conditions described in clause (i)— ensure, to the maximum extent practicable, that those terms and conditions are not— duplicative of other requirements applicable to rural business investment companies; or otherwise unnecessary; and take into consideration how rural business investment companies that have been issued a license by the Secretary under section 384D(e) of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 2009cc–3(e) ) before the date of enactment of this section could qualify to receive that leverage. Not later than June 1 of each year, the Administration shall perform an evaluation to determine whether the Administration will be unable to expend all of the covered amounts for the fiscal year in which the evaluation is made. ; and in section 503(g) ( 15 U.S.C. 697(g) ), by inserting , and with respect to leverage granted under section 321, after retained by the Administration under this section . Not later than 180 days after the date of enactment of this Act, the Administrator, in consultation with the Secretary, shall establish a process through which a rural business investment company may apply for leverage granted under section 321 of the Small Business Investment Act of 1958, as added by subsection

(a)of this section. Not later than 180 days after the date of enactment of this Act, and in addition to the process established under paragraph (1), the Administrator shall make any updates to the rules of the Administration that are necessary as a result of this section and the amendments made by this section.

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