[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 68 Engrossed Amendment Senate (EAS)]
In the Senate of the United States,
March 22, 1999.
Resolved, That the bill from the House of Representatives (H.R.
68) entitled ``An Act to amend section 20 of the Small Business Act and
make technical corrections in title III of the Small Business
Investment Act.'', do pass with the following
AMENDMENT:
Strike out all after the enacting clause and insert:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Small Business Investment
Improvement Act of 1999''.
SEC. 2. SBIC PROGRAM.
(a) In General.--Section 308(i)(2) of the Small Business Investment
Act of 1958 (15 U.S.C. 687(i)(2)) is amended by adding at the end the
following: ``In this paragraph, the term `interest' includes only the
maximum mandatory sum, expressed in dollars or as a percentage rate,
that is payable with respect to the business loan amount received by
the small business concern, and does not include the value, if any, of
contingent obligations, including warrants, royalty, or conversion
rights, granting the small business investment company an ownership
interest in the equity or increased future revenue of the small
business concern receiving the business loan.''.
(b) Funding Levels.--Section 20 of the Small Business Act (15
U.S.C. 631 note) is amended--
(1) in subsection (d)(1)(C)(i), by striking
``$800,000,000'' and inserting ``$1,200,000,000''; and
(2) in subsection (e)(1)(C)(i), by striking
``$900,000,000'' and inserting ``$1,500,000,000''.
(c) Definitions.--
(1) Small business concern.--Section 103(5) of the Small
Business Investment Act of 1958 (15 U.S.C. 662(5)) is amended--
(A) by redesignating subparagraphs (A) through (C)
as clauses (i) through (iii), and indenting
appropriately;
(B) in clause (iii), as redesignated, by adding
``and'' at the end;
(C) by striking ``purposes of this Act, an
investment'' and inserting the following: ``purposes of
this Act--
``(A) an investment''; and
(D) by adding at the end the following:
``(B) in determining whether a business concern
satisfies net income standards established pursuant to
section 3(a)(2) of the Small Business Act, if the
business concern is not required by law to pay Federal
income taxes at the enterprise level, but is required
to pass income through to the shareholders, partners,
beneficiaries, or other equitable owners of the
business concern, the net income of the business
concern shall be determined by allowing a deduction in
an amount equal to the sum of--
``(i) if the business concern is not
required by law to pay State (and local, if
any) income taxes at the enterprise level, the
net income (determined without regard to this
subparagraph), multiplied by the marginal State
income tax rate (or by the combined State and
local income tax rates, as applicable) that
would have applied if the business concern were
a corporation; and
``(ii) the net income (so determined) less
any deduction for State (and local) income
taxes calculated under clause (i), multiplied
by the marginal Federal income tax rate that
would have applied if the business concern were
a corporation;''.
(2) Smaller enterprise.--Section 103(12)(A)(ii) of the
Small Business Investment Act of 1958 (15 U.S.C.
662(12)(A)(ii)) is amended by inserting before the semicolon at
the end the following: ``except that, for purposes of this
clause, if the business concern is not required by law to pay
Federal income taxes at the enterprise level, but is required
to pass income through to the shareholders, partners,
beneficiaries, or other equitable owners of the business
concern, the net income of the business concern shall be
determined by allowing a deduction in an amount equal to the
sum of--
``(I) if the business concern is
not required by law to pay State (and
local, if any) income taxes at the
enterprise level, the net income
(determined without regard to this
clause), multiplied by the marginal
State income tax rate (or by the
combined State and local income tax
rates, as applicable) that would have
applied if the business concern were a
corporation; and
``(II) the net income (so
determined) less any deduction for
State (and local) income taxes
calculated under subclause (I),
multiplied by the marginal Federal
income tax rate that would have applied
if the business concern were a
corporation''.
(d) Technical Corrections.--
(1) Repeal.--Section 303(g) of the Small Business
Investment Act of 1958 (15 U.S.C. 683(g)) is amended by
striking paragraph (13).
(2) Issuance of guarantees and trust certificates.--Section
320 of the Small Business Investment Act of 1958 (15 U.S.C.
687m) is amended by striking ``6'' and inserting ``12''.
(3) Elimination of table of contents.--Section 101 of the
Small Business Investment Act of 1958 (15 U.S.C. 661 note) is
amended to read as follows:
``SEC. 101. SHORT TITLE.
``This Act may be cited as the `Small Business Investment Act of
1958'.''.
Attest:
Secretary.
106th CONGRESS
1st Session
H. R. 68
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AMENDMENT