U.S. Congress - Text of S.1662 as Reported in Senate Small Business Venture Capital Act of 2007
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Donate NowS.1662 - Small Business Venture Capital Act of 2007
A bill to amend the Small Business Investment Act of 1958 to reauthorize the venture capital program, and for other purposes.
| Version | Word Count | Changes From Previous Version | Percent Change |
|---|---|---|---|
| Introduced in Senate | 768 | n/a | n/a |
| Reported in Senate | 2,769 | 20 Show Changes Hide Changes | 71% |
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S 1662 ISRSCommentsClose CommentsPermalink
To amend the Small Business Investment Act of 1958 to reauthorize the venture capital program, and for other purposes.CommentsClose CommentsPermalink
June 19, 2007
Mr. KERRY (for himself and Ms. SNOWE) introduced the following bill; which was read twice and referred to the Committee on Small Business and EntrepreneurshipCommentsClose CommentsPermalink
October 16, 2007
Reported by Mr. KERRY, with an amendmentCommentsClose CommentsPermalink
[Strike out all after the enacting clause and insert the part printed in italic]
To amend the Small Business Investment Act of 1958 to reauthorize the venture capital program, and for other purposes.CommentsClose CommentsPermalink
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, CommentsClose CommentsPermalink
SECTION 1. SHORT TITLE.
This Act may be cited as the `Small Business Venture Capital Act of 2007'. CommentsClose CommentsPermalink
SEC. 2. DEFINITIONS.
In this Act-- CommentsClose CommentsPermalink
(1) the terms `Administration' and `Administrator' mean the Small Business Administration and the Administrator thereof, respectively; CommentsClose CommentsPermalink
(2) the term `low-income geographic area' has the meaning given that term in section 351 of the Small Business Investment Act of 1958 (
(3) the term `New Markets Venture Capital company' has the meaning given that term in section 351 of the Small Business Investment Act of 1958 (
(4) the term `New Markets Venture Capital Program' means the program under part B of title III of the Small Business Investment Act of 1958 (
SEC. 3. TABLE OF CONTENTS.
The table of contents for this Act is as follows: CommentsClose CommentsPermalink
Sec. 1. Short title. CommentsClose CommentsPermalink
Sec. 2. Definitions. CommentsClose CommentsPermalink
Sec. 3. Table of contents. CommentsClose CommentsPermalink
TITLE I--SMALL BUSINESS INVESTMENT COMPANY PROGRAM
Sec. 101. Reauthorization. CommentsClose CommentsPermalink
Sec. 102. Leverage. CommentsClose CommentsPermalink
Sec. 103. Investments in small er enterprises. CommentsClose CommentsPermalink
Sec. 104. Private capital. CommentsClose CommentsPermalink
Sec. 105. Maximum investment in a company. CommentsClose CommentsPermalink
TITLE II--NEW MARKETS VENTURE CAPITAL PROGRAM
Sec. 201. Diversification of New Markets Venture Capital Program. CommentsClose CommentsPermalink
Sec. 202. Establishment of Office of New Markets Venture Capital. CommentsClose CommentsPermalink
Sec. 203. Low-income geographic areas. CommentsClose CommentsPermalink
Sec. 204. Applications for New Markets Venture Capital Program. CommentsClose CommentsPermalink
Sec. 205. Operational assistance grants. CommentsClose CommentsPermalink
Sec. 206. Authorization. CommentsClose CommentsPermalink
TITLE I--SMALL BUSINESS INVESTMENT COMPANY PROGRAM
SEC. 101. REAUTHORIZATION.
Section 20 of the Small Business Act (
`(f) Small Business Venture Capital- For the programs authorized under part A of title III of the Small Business Investment Act of 1958 (
`(1) $500,000,000 in purchases of participating securities for each of fiscal years 2007 through 2010; and CommentsClose CommentsPermalink
`(2)(A) $2,000,000,000 in guarantees of debentures for fiscal year 2007; CommentsClose CommentsPermalink
`(B) $2,250,000,000 in guarantees of debentures for fiscal year 2008; CommentsClose CommentsPermalink
`(C) $2,500,000,000 in guarantees of debentures for fiscal year 2009; and CommentsClose CommentsPermalink
`(D) $2,77550,000,000 in guarantees of debentures for fiscal year 2010.'. CommentsClose CommentsPermalink
SEC. 3102. LEVERAGE.
(a) In General- Section 303(b)(2) of the Small Business Investment Act of 1958 (
`(2) MAXIMUM LEVERAGE- CommentsClose CommentsPermalink
`(A) IN GENERAL- The maximum amount of outstanding leverage made available to any 1 company licensed under section 301(c) may not exceed the lesser of-- CommentsClose CommentsPermalink
`(i) 300 percent of private capital; or CommentsClose CommentsPermalink
`(ii) $150,000,000. CommentsClose CommentsPermalink
`(B) MULTIPLE LICENSES UNDER COMMON CONTROL- The maximum amount of outstanding leverage made available to 2 or more companies licensed under section 301(c) that are commonly controlled (as determined by the Administrator) may not exceed $225,000,000. CommentsClose CommentsPermalink
`(C) INVESTMENTS IN WOMEN-OWNED AND MINORITY-OWNED BUSINESSES AND IN LOW-INCOME GEOGRAPHIC AREAS- CommentsClose CommentsPermalink
`(i) IN GENERAL- The maximum amount of outstanding leverage made available to-- CommentsClose CommentsPermalink
`(I) any 1 company described in clause (ii) may not exceed the lesser of-- CommentsClose CommentsPermalink
`(aa) 300 percent of private capital; or CommentsClose CommentsPermalink
`(bb) $175,000,000; and CommentsClose CommentsPermalink
`(II) 2 or more companies described in clause (ii) that are commonly controlled (as determined by the Administrator) may not exceed $250,000,000. CommentsClose CommentsPermalink
`(ii) APPLICABILITY- A company described in this clause is a company licensed under section 301(c) that certifies in writing that not less than 50 percent of the dollar amount of investments of that company shall be made in companies that, prior to that investment, are owned by women or minorities (as determined by the Administrator) or are located in a low-income geographic area (as that term is defined in section 351). CommentsClose CommentsPermalink
`(iiiD) EXCEPTION- The Administrator may, on a case-by-case basis, impose such additional terms and conditions relating to the maximum amount of outstanding leverage made available as the Administrator determines to be appropriate to minimize the risk of loss to the Administration in the event of a default.'. CommentsClose CommentsPermalink
(b) Technical and Conforming Amendments- Section 303(b) of the Small Business Investment Act of 1958 (
SEC. 4103. INVESTMENTS IN SMALLER ENTERPRISES.
Section 303(d) of the Small Business Investment Act of 1958 (
`(d) Investments in Smaller Enterprises- The Administrator shall require each licensee, as a condition of an application for leverage, to certify in writing that not less than 25 percent of the aggregate dollar amount of financings of that licensee shall be provided to smaller enterprises.'. CommentsClose CommentsPermalink
SEC. 5104. PRIVATE CAPITAL.
(a) In General- Section 103(9)(A)(ii) of the Small Business Investment Act of 1958 (
SEC. 105. MAXIMUM INVESTMENT IN A COMPANY.
Section 306(a) of the Small Business Investment Act of 1958 (
TITLE II--NEW MARKETS VENTURE CAPITAL PROGRAM
SEC. 201. DIVERSIFICATION OF NEW MARKETS VENTURE CAPITAL PROGRAM.
(a) Selection of Companies in Each Geographic Region- Section 354 of the Small Business Investment Act of 1958 (
`(f) Geographic Goal- In selecting companies to participate as New Markets Venture Capital companies in the program established under this part, the Administrator shall have as a goal to select, from among companies submitting applications under subsection (b), at least 1 company from each geographic region of the Administration.'. CommentsClose CommentsPermalink
(b) Participation in New Markets Venture Capital Program- CommentsClose CommentsPermalink
(1) ADMINISTRATION PARTICIPATION REQUIRED- Section 353 of the Small Business Investment Act of 1958 (
(2) SMALL MANUFACTURER PARTICIPATION- Section 353(1) of the Small Business Investment Act of 1958 (
SEC. 202. ESTABLISHMENT OF OFFICE OF NEW MARKETS VENTURE CAPITAL.
Title II of the Small Business Investment Act of 1958 (
`SEC. 202. OFFICE OF NEW MARKETS VENTURE CAPITAL.
`(a) Establishment- There is established in the Investment Division of the Administration, the Office of New Markets Venture Capital. CommentsClose CommentsPermalink
`(b) Director- The head of the Office of New Markets Venture Capital shall be an individual appointed in the competitive service or excepted service. CommentsClose CommentsPermalink
`(c) Responsibilities of Director- The responsibilities of the head of the Office of New Markets Venture Capital include-- CommentsClose CommentsPermalink
`(1) to administer the New Markets Venture Capital Program under part B of title III; CommentsClose CommentsPermalink
`(2) to assess, not less frequently than once every 2 years, the nature and scope of the New Markets Venture Capital Program and to advise the Administrator on recommended changes to the program, based on such assessment; CommentsClose CommentsPermalink
`(3) to work to expand the number of small business concerns participating in the New Markets Venture Capital Program; and CommentsClose CommentsPermalink
`(4) to encourage investment in small manufacturing.'. CommentsClose CommentsPermalink
SEC. 203. LOW-INCOME GEOGRAPHIC AREAS.
(a) In General- Section 351 of the Small Business Investment Act of 1958 (
(1) by striking paragraph (2); CommentsClose CommentsPermalink
(2) by redesignating paragraphs (3) through (8) as paragraphs (2) through (7), respectively; and CommentsClose CommentsPermalink
(3) in paragraph (2), as so redesignated-- CommentsClose CommentsPermalink
(A) in the matter preceding subparagraph (A)-- CommentsClose CommentsPermalink
(i) by striking `the term' and inserting `The term'; and CommentsClose CommentsPermalink
(ii) by striking `means'; CommentsClose CommentsPermalink
(B) by striking subparagraph (A) and inserting the following: CommentsClose CommentsPermalink
`(A) means a `low-income community' within the meaning of section 45D(e) of the Internal Revenue Code of 1986 (relating to the new markets tax credit); and'; and CommentsClose CommentsPermalink
(C) in subparagraph (B), in the matter preceding clause (i), by inserting `includes' before `any area'. CommentsClose CommentsPermalink
(b) Application of Amended Definition to Capital Requirement- The definition of a low-income geographic area in section 351 of the Small Business Investment Act of 1958, as amended by subsection (a), shall apply to capital raised by a New Markets Venture Capital company before, on, or after the date of enactment of this Act. CommentsClose CommentsPermalink
SEC. 204. APPLICATIONS FOR NEW MARKETS VENTURE CAPITAL PROGRAM.
Not later than 1 year after the date of enactment of this Act, the Administrator shall prescribe standard documents for an application for final approval by a New Markets Venture Capital company under section 354(e) of the Small Business Investment Act of 1958 (
SEC. 205. OPERATIONAL ASSISTANCE GRANTS.
(a) In General- Section 358(a)(4)(A) of the Small Business Investment Act of 1958 (
`(A) NEW MARKETS VENTURE CAPITAL COMPANIES- Notwithstanding section 354(d)(2), the amount of a grant made under this subsection to a New Markets Venture Capital company shall be equal to the lesser of-- CommentsClose CommentsPermalink
`(i) 10 percent of the private capital raised by the company; or CommentsClose CommentsPermalink
`(ii) $1,000,000.'. CommentsClose CommentsPermalink
(b) Conforming Amendment and Limitation on Time for Final Approval of Companies- Section 354(d) of the Small Business Investment Act of 1958 (
`(d) Requirements To Be Met for Final Approval- The Administrator shall grant each conditionally approved company 2 years to raise not less than $5,000,000 of private capital or binding capital commitments from one or more investors (other than agencies or departments of the Federal Government) who met criteria established by the Administrator.'. CommentsClose CommentsPermalink
SEC. 206. AUTHORIZATION.
Section 368(a) of the Small Business Investment Act of 1958 (
(1) in the matter preceding paragraph (1), by striking `fiscal years 2001 through 2006' and inserting `fiscal years 2007 through 2010'; and CommentsClose CommentsPermalink
(2) in paragraph (2), by striking `$30,000,000' and inserting `$20,000,000'. CommentsClose CommentsPermalink
Calendar No. 422CommentsClose CommentsPermalink
To amend the Small Business Investment Act of 1958 to reauthorize the venture capital program, and for other purposes.CommentsClose CommentsPermalink
October 16, 2007
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