Improving the number of small business investment companies in underlicensed States

The Small Business Investment Act of 1958 (15 U.S.C. 661 et seq.) is amended— (1)in section 103 (15 U.S.C. 662)— (A)in paragraph (18)(E), by striking and at the end; (B)in paragraph (19), by striking the period at the end and inserting ; and; and (C)by adding at the end the following:

(20)the term underlicensed State means a State in which the number of licensees per capita is less than the median number of licensees per capita for all States, as calculated by the Administrator.

;

(2)in section 301(c) (15 U.S.C. 681(c))— (A)in paragraph (3)— (i)in subparagraph (B)(iii), by striking and at the end; (ii)in subparagraph (C), by striking the period at the end and inserting ; and; and (iii)by adding at the end the following:

(D)shall give first priority to an applicant that is located in an underlicensed State with below median financing, as determined by the Administrator.

; and

(B)in paragraph (4)(B)— (i)by striking clause (i); (ii)by redesignating clauses (ii) and (iii) as clauses (i) and (ii), respectively; and (iii)by amending clause (i), as so redesignated, to read as follows:

(i)is located in a State that— (I)is not served by a licensee; or (II)is an underlicensed State; and

; and

(3)in section 308(g) (15 U.S.C. 687(g))— (A)in paragraph (2)— (i)in subparagraph (B), by inserting and licensing after financing; (ii)by redesignating subparagraphs (C) through (J) as subparagraphs (E) through (L), respectively; and (iii)by inserting after subparagraph (B) the following:

(C)Steps taken by the Administration to improve the number of licensees in underlicensed States. (D)The Administration's plans to support States that seek to increase the number of licensees in the State.

; and

(B)in paragraph (3)— (i)in subparagraph (C), by striking and at the end; (ii)in subparagraph (D), by striking the period at the end and inserting ; and; and (iii)by adding at the end the following:

(E)the geographic dispersion of licensees in each State compared to the population of the State, identifying underlicensed States.