[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1594 Reported in Senate (RS)]






                                                       Calendar No. 759
106th CONGRESS
  2d Session
                                S. 1594

                          [Report No. 106-383]

 To amend the Small Business Act and Small Business Investment Act of 
                                 1958.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 16, 2000

Mr. Kerry (for himself, Mr. Wellstone, Mr. Bingaman, Mr. Sarbanes, Mr. 
Levin,  Mr. Cleland, Mr. Lieberman, Mr. Robb, Mr. Akaka, Ms. Landrieu, 
Mr. Edwards, and Mr. Daschle) introduced the following bill; which was 
       read twice and referred to the Committee on Small Business

                            August 25, 2000

 Reported under authority of the order of the Senate of July 26, 2000, 
                     by Mr. Bond, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL


 
 To amend the Small Business Act and Small Business Investment Act of 
                                 1958.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

<DELETED>SECTION 1. SHORT TITLE; TABLE OF CONTENTS.</DELETED>

<DELETED>    (a) Short Title.--This Act may be cited as the ``Community 
Development and Venture Capital Act of 1999''.</DELETED>
<DELETED>    (b) Table of Contents.--The table of contents for this Act 
is as follows:</DELETED>

<DELETED>Sec. 1. Short title; table of contents.
         <DELETED>TITLE I--NEW MARKETS VENTURE CAPITAL PROGRAM

<DELETED>Sec. 101. New Markets Venture Capital Program.
<DELETED>Sec. 102. Bankruptcy exemption for NMVC companies.
<DELETED>Sec. 103. Federal savings associations.
  <DELETED>TITLE II--COMMUNITY DEVELOPMENT VENTURE CAPITAL ASSISTANCE

<DELETED>Sec. 201. Short title.
<DELETED>Sec. 202. Findings and purposes.
<DELETED>Sec. 203. Community development venture capital activities.
                   <DELETED>TITLE III--BUSINESS LINC

<DELETED>Sec. 301. Grants authorized.
<DELETED>Sec. 302. Regulations.

    <DELETED>TITLE I--NEW MARKETS VENTURE CAPITAL PROGRAM</DELETED>

<DELETED>SEC. 101. NEW MARKETS VENTURE CAPITAL PROGRAM.</DELETED>

<DELETED>    (a) In General.--Title III of the Small Business 
Investment Act of 1958 (15 U.S.C. 661 et seq.) is amended--</DELETED>
        <DELETED>    (1) by striking the title designation and heading 
        and inserting the following:</DELETED>

      <DELETED>``TITLE III--INVESTMENT DIVISION PROGRAMS</DELETED>

  <DELETED>``PART A--SMALL BUSINESS INVESTMENT COMPANIES'';</DELETED>

        <DELETED>and</DELETED>
        <DELETED>    (2) by adding at the end the following:</DELETED>

    <DELETED>``PART B--NEW MARKETS VENTURE CAPITAL PROGRAM</DELETED>

<DELETED>``SEC. 351. DEFINITIONS.</DELETED>

<DELETED>    ``In this part--</DELETED>
        <DELETED>    ``(1) the term `eligible company' means a company 
        that--</DELETED>
                <DELETED>    ``(A) is a newly formed for-profit entity, 
                which may be a newly formed for-profit subsidiary of an 
                existing entity; and</DELETED>
                <DELETED>    ``(B) has a management team with 
                experience in community development financing or 
                relevant venture capital financing;</DELETED>
        <DELETED>    ``(2) the term `low-income individual' means an 
        individual whose income (adjusted for family size) does not 
        exceed--</DELETED>
                <DELETED>    ``(A) for metropolitan areas, 80 percent 
                of the area median income; and</DELETED>
                <DELETED>    ``(B) for nonmetropolitan areas, the 
                greater of--</DELETED>
                        <DELETED>    ``(i) 80 percent of the area 
                        median income; or</DELETED>
                        <DELETED>    ``(ii) 80 percent of the statewide 
                        nonmetropolitan area median income;</DELETED>
        <DELETED>    ``(3) the term `low- or moderate-income geography' 
        means--</DELETED>
                <DELETED>    ``(A) any population census tract (or in 
                the case of an area that is not tracted for population 
                census tracts, the equivalent county division, as 
                defined by the Bureau of the Census of the Department 
                of Commerce for purposes of defining poverty areas) 
                if--</DELETED>
                        <DELETED>    ``(i) the poverty rate for such 
                        census tract is not less than 20 percent; 
                        or</DELETED>
                        <DELETED>    ``(ii)(I) in the case of a tract 
                        located within a metropolitan area, the median 
                        family income for such tract does not exceed 
                        the greater of 80 percent of the statewide 
                        median family income or 80 percent of the 
                        metropolitan area median family income; 
                        or</DELETED>
                        <DELETED>    ``(II) in the case of a tract not 
                        located within a metropolitan area, the median 
                        family income for such tract does not exceed 80 
                        percent of the statewide median family income; 
                        or</DELETED>
                <DELETED>    ``(B) any area located within--</DELETED>
                        <DELETED>    ``(i) a HUBZone (as defined in 
                        section 3(p) of the Small Business Act and the 
                        implementing regulations issued under that 
                        section);</DELETED>
                        <DELETED>    ``(ii) an urban empowerment zone 
                        or urban enterprise community (as designated by 
                        the Secretary of Housing and Urban 
                        Development); or</DELETED>
                        <DELETED>    ``(iii) a rural empowerment zone 
                        or rural enterprise community (as designated by 
                        the Secretary of Agriculture);</DELETED>
        <DELETED>    ``(4) the terms `new markets venture capital 
        company' and `NMVC company' mean a company that has been 
        designated as a new markets venture capital company by the 
        Administrator under section 354(d);</DELETED>
        <DELETED>    ``(5) the term `participation agreement' means an 
        agreement between the Administrator and an NMVC company that 
        furthers the purposes set forth in section 352, detailing the 
        operating plan and investment criteria of the company and 
        requiring that not less than 80 percent of the investments of 
        the company be made in smaller enterprises--</DELETED>
                <DELETED>    ``(A) that are located in 1 or more low- 
                or moderate-income geographies or 1 or more targeted 
                population areas; or</DELETED>
                <DELETED>    ``(B) not less than 35 percent of the 
                employees of which--</DELETED>
                        <DELETED>    ``(i) reside or will reside in a 
                        low- or moderate-income geography or a targeted 
                        population area; or</DELETED>
                        <DELETED>    ``(ii) are or will be low-income 
                        individuals;</DELETED>
        <DELETED>    ``(6) the term `targeted population' means an 
        identifiable group of individuals, including an Indian tribe, 
        as determined by the Administrator, who are low-income 
        individuals; and</DELETED>
        <DELETED>    ``(7) the term `targeted population area' means an 
        identifiable geographic area, as determined by the 
        Administrator, containing a concentration of 1 or more targeted 
        populations.</DELETED>

<DELETED>``SEC. 352. PURPOSES.</DELETED>

<DELETED>    ``The purposes of this part are--</DELETED>
        <DELETED>    ``(1) to encourage venture capital investment in 
        smaller enterprises located within urban and rural 
        areas;</DELETED>
        <DELETED>    ``(2) to promote the creation of wealth, economic 
        development, and job opportunities in low- and moderate-income 
        geographies and for targeted populations; and</DELETED>
        <DELETED>    ``(3) to establish a venture capital program, 
        which shall be administered by the Administrator--</DELETED>
                <DELETED>    ``(A) to make grants to NMVC companies for 
                the purpose of providing marketing, management, and 
                technical assistance to smaller enterprises financed, 
                or expected to be financed, by such companies; 
                and</DELETED>
                <DELETED>    ``(B) to guarantee debentures issued by 
                NMVC companies to enable such companies to make venture 
                capital investments in smaller enterprises within urban 
                and rural areas.</DELETED>

<DELETED>``SEC. 353. PROGRAM ESTABLISHMENT.</DELETED>

<DELETED>    ``There is established a New Markets Venture Capital 
Program, under which the Administrator is authorized to--</DELETED>
        <DELETED>    ``(1) make grants to NMVC companies, as provided 
        in section 355; and</DELETED>
        <DELETED>    ``(2) guarantee debentures issued by NMVC 
        companies, as provided in section 356.</DELETED>

<DELETED>``SEC. 354. APPROVAL OF NMVC COMPANIES.</DELETED>

<DELETED>    ``(a) Applications.--In order to be eligible to 
participate in the program under this part as an NMVC company, an 
eligible company shall submit to the Administrator an application, 
within such period of time as the Administrator shall establish, which 
shall include--</DELETED>
        <DELETED>    ``(1) a business plan that describes the manner 
        and geographic areas in which the applicant will make 
        successful venture capital investments in smaller enterprises 
        described in subparagraphs (A) and (B) of section 351(5) and 
        provide marketing, management, and technical assistance to 
        those enterprises;</DELETED>
        <DELETED>    ``(2) the qualifications and general business 
        reputation of the management of the applicant, specifically 
        addressing--</DELETED>
                <DELETED>    ``(A) the experience of the management in 
                making venture capital investments in smaller 
                enterprises described in subparagraphs (A) and (B) of 
                section 351(5); and</DELETED>
                <DELETED>    ``(B) the success of those investments in 
                terms of business growth, jobs created, and such other 
                factors as the Administrator may require; and</DELETED>
        <DELETED>    ``(3) a description of the manner in which the 
        applicant will interface with community 
        organizations;</DELETED>
        <DELETED>    ``(4) a proposal describing the manner in which 
        grant amounts made available under this part would provide 
        marketing, management, and technical assistance to smaller 
        enterprises expected to be financed by the applicant;</DELETED>
        <DELETED>    ``(5) proposed criteria by which to evaluate the 
        performance of the applicant in meeting program 
        objectives;</DELETED>
        <DELETED>    ``(6) the management and financial strength of any 
        parent or affiliated firm, or any firm essential to the success 
        of the business plan of the applicant; and</DELETED>
        <DELETED>    ``(7) such other information as the Administrator 
        may require.</DELETED>
<DELETED>    ``(b) Criteria for Conditional Approval.--Upon receipt of 
an application submitted under subsection (a), the Administrator shall 
review the application and make a determination regarding whether to 
grant conditional approval to the applicant to operate as an NMVC 
company during the time period described in subsection (c), based on--
</DELETED>
        <DELETED>    ``(1) the geographic area and employment 
        characteristics of the smaller enterprises in which the 
        proposed investments of the NMVC company will be made (in order 
        to promote investment nationwide);</DELETED>
        <DELETED>    ``(2) the likelihood that the applicant will meet 
        the goals of the business plan of the applicant;</DELETED>
        <DELETED>    ``(3) the experience and background of the 
        company's management team;</DELETED>
        <DELETED>    ``(4) the need for equity investments within the 
        proposed investment areas;</DELETED>
        <DELETED>    ``(5) the extent to which the applicant will 
        concentrate its activities on serving its investment 
        areas;</DELETED>
        <DELETED>    ``(6) the likelihood that the applicant will be 
        able to satisfy the requirements of subsection (c);</DELETED>
        <DELETED>    ``(7) the extent to which the proposed activities 
        will expand economic opportunities within the investment areas; 
        and</DELETED>
        <DELETED>    ``(8) such other factors as the Administrator 
        determines to be appropriate.</DELETED>
<DELETED>    ``(c) Requirements for Final Approval.--</DELETED>
        <DELETED>    ``(1) In general.--Subject to paragraph (2), each 
        applicant that is granted conditional approval by the 
        Administrator to operate as an NMVC company under subsection 
        (b), shall, before the expiration of a time period established 
        by the Administrator not to exceed 24 months, beginning on the 
        date on which such conditional approval is granted--</DELETED>
                <DELETED>    ``(A) raise not less than $5,000,000 of 
                contributed capital or binding capital commitments from 
                1 or more investors (other than an agency of the 
                Federal Government) that meet criteria established by 
                the Administrator; and</DELETED>
                <DELETED>    ``(B) in order to provide marketing, 
                management, and technical assistance, have--</DELETED>
                        <DELETED>    ``(i) cash or binding commitments 
                        for contributions (in cash or in-kind) from 
1 or more sources other than the Administration that meet criteria 
established by the Administrator, payable or available over a multiyear 
period acceptable to the Administrator (not to exceed 10 years), in an 
amount equal to 30 percent of the capital and commitments raised under 
subparagraph (A);</DELETED>
                        <DELETED>    ``(ii) purchased an annuity from 
                        an insurance company acceptable to the 
                        Administrator, using amounts (other than the 
                        amounts raised to satisfy the requirements of 
                        subparagraph (A)) from any source other than 
                        the Administration, that would yield cash 
                        payments over a multiyear period acceptable to 
                        the Administrator (not to exceed 10 years), in 
                        an amount equal to 30 percent of the capital 
                        and commitments raised under subparagraph (A); 
                        or</DELETED>
                        <DELETED>    ``(iii) cash or binding 
                        commitments for contributions (in cash or in-
                        kind) of the type described in clause (i) and 
                        have purchased an annuity of the type described 
                        in clause (ii), that in the aggregate make 
                        available, over a multiyear period acceptable 
                        to the Administrator (not to exceed 10 years), 
                        an amount equal to 30 percent of the capital 
                        and commitments raised under subparagraph 
                        (A).</DELETED>
        <DELETED>    ``(2) Exception.--The Administrator may, in the 
        discretion of the Administrator and based upon a showing of 
        special circumstances and good cause, consider an applicant to 
        have satisfied the requirements of paragraph (1)(B) if the 
        applicant has a viable plan that reasonably projects the 
        capacity of the applicant to raise the amount (in cash or in-
        kind) required under paragraph (1)(B).</DELETED>
<DELETED>    ``(d) Grant of Final Approval; Designation.--The 
Administrator shall, with respect to each applicant conditionally 
approved to operate as an NMVC company under subsection (b), either--
</DELETED>
        <DELETED>    ``(1) grant final approval to the applicant to 
        operate as an NMVC company under this part and designate the 
        applicant as an NMVC company, if the applicant--</DELETED>
                <DELETED>    ``(A) satisfies the requirements of 
                subsection (c) on or before the expiration of the time 
                period described in that subsection; and</DELETED>
                <DELETED>    ``(B) enters into a participation 
                agreement with the Administrator; or</DELETED>
        <DELETED>    ``(2) if the applicant fails to satisfy the 
        requirements of subsection (c) on or before the expiration of 
        the time period described in that subsection, revoke the 
        conditional approval granted under that subsection.</DELETED>

<DELETED>``SEC. 355. TECHNICAL ASSISTANCE GRANTS.</DELETED>

<DELETED>    ``(a) Grants.--</DELETED>
        <DELETED>    ``(1) In general.--The Administrator, in 
        accordance with such terms and conditions as the Administrator 
        may require, is authorized to award 1 or more grants to each 
        NMVC company in accordance with this subsection, which shall be 
        used to provide marketing, management, and technical assistance 
        for the benefit of smaller enterprises financed, or expected to 
        be financed, by the NMVC company.</DELETED>
        <DELETED>    ``(2) Multiyear grants.--Amounts from a grant 
        awarded under this section shall be paid upon the direction of 
        the Administrator over a multiyear period of not to exceed 10 
        years.</DELETED>
        <DELETED>    ``(3) Grant amount.--</DELETED>
                <DELETED>    ``(A) In general.--Subject to subparagraph 
                (B), the amount of a grant awarded to an NMVC company 
                under this subsection shall be equal to 30 percent of 
                the amount of capital and commitments raised under 
                section 354(c)(1)(A).</DELETED>
                <DELETED>    ``(B) Matching requirement.--</DELETED>
                        <DELETED>    ``(i) In general.--Except as 
                        provided in clause (ii), in order to receive 
                        funds under a grant awarded under this 
                        subsection, an NMVC company shall provide a 
                        matching contribution (in cash or in-kind) from 
                        sources other than the Administration, in an 
                        amount equal to the funds to 
                        received.</DELETED>
                        <DELETED>    ``(ii) Exception.--The 
                        Administrator may waive in whole or in part the 
                        matching requirement of clause (i), if the 
                        Administrator determines that such action is 
                        consistent with the purposes set forth in 
                        section 352 and with protecting the creditor 
                        status of the Federal Government as a guarantor 
                        of debentures issued by an NMVC 
                        company.</DELETED>
        <DELETED>    ``(4) Pro rata reductions.--If the amount made 
        available to carry out this section for a fiscal year is 
        insufficient for the Administrator to award grants in the 
        amounts required under paragraph (3), the Administrator shall 
        make pro rata reductions in the amounts otherwise payable to 
        each NMVC company under that paragraph.</DELETED>
<DELETED>    ``(b) Supplemental Grants.--</DELETED>
        <DELETED>    ``(1) In general.--In addition to any grant under 
        subsection (a), the Administrator, in accordance with such 
        terms and conditions as the Administrator may require, may make 
        1 or more supplemental grants to an NMVC company, which shall 
        be used to provide additional marketing, management, and 
        technical assistance for the benefit of smaller enterprises 
        financed, or expected to be financed, by the NMVC 
        company.</DELETED>
        <DELETED>    ``(2) Matching requirement.--The Administrator may 
        require, as a condition of any supplemental grant made under 
        this subsection, that the NMVC company provide a matching 
        contribution (in cash or in-kind) from 1 or more sources other 
        than the Administrator in an amount equal to the amount of the 
        supplemental grant.</DELETED>

<DELETED>``SEC. 356. DEBENTURES.</DELETED>

<DELETED>    ``(a) In General.--The Administrator is authorized to 
guarantee the timely payment of principal and interest as scheduled on 
debentures issued by NMVC companies, in accordance with such terms and 
conditions the Administrator determines to be appropriate.</DELETED>
<DELETED>    ``(b) Full Faith and Credit.--The full faith and credit of 
the United States is pledged to the payment of all amounts that may be 
required to be paid under any guarantee under this section.</DELETED>
<DELETED>    ``(c) Debenture Requirements.--A debenture guaranteed 
under this section--</DELETED>
        <DELETED>    ``(1) may be issued for a term of not to exceed 15 
        years;</DELETED>
        <DELETED>    ``(2) shall bear interest at a rate approved by 
        the Administrator; and</DELETED>
        <DELETED>    ``(3) shall contain such other terms and 
        conditions as the Administrator may require.</DELETED>
<DELETED>    ``(d) Total Face Value.--The total face amount of 
debentures issued by an NMVC company and guaranteed under this section 
that may be outstanding at any 1 time shall not exceed 150 percent of 
the contributed capital of the NMVC company, as determined by the 
Administrator. For purposes of this subsection, the contributed capital 
of an NMVC company includes capital that is deemed to be Federal funds 
contributed by an investor other than an agency of the Federal 
Government.</DELETED>

<DELETED>``SEC. 357. ISSUANCE AND GUARANTEE OF TRUST 
              CERTIFICATES.</DELETED>

<DELETED>    ``(a) In General.--The Administrator (or an agent of the 
Administrator) is authorized to issue trust certificates representing 
ownership of all or a fractional part of debentures guaranteed by the 
Administrator under section 356, if such trust certificates are based 
on and backed by a trust or pool approved by the Administrator and 
composed solely of debentures guaranteed under section 356.</DELETED>
<DELETED>    ``(b) Guarantee Authority.--</DELETED>
        <DELETED>    ``(1) In general.--The Administrator is authorized 
        to, upon such terms and conditions as the Administrator 
        determines to be appropriate, guarantee the timely payment of 
        the principal of and interest on any trust certificate issued 
        under this section.</DELETED>
        <DELETED>    ``(2) Limitation.--A guarantee under this 
        subsection shall be limited to the extent of the principal of 
        and interest on the guaranteed debentures that compose the 
        trust or pool described in subsection (a).</DELETED>
        <DELETED>    ``(3) Reduction.--If a debenture in a trust or 
        pool described in subsection (a) is prepaid, or in the event of 
        default of a debenture, the guarantee of timely payment of 
        principal and interest on the related trust certificate issued 
        under this section shall be reduced in proportion to the amount 
        of principal and interest that such prepaid debenture 
        represents in that trust or pool.</DELETED>
        <DELETED>    ``(4) Accrual of interest.--Interest on prepaid or 
        defaulted debentures shall accrue and be guaranteed by the 
        Administrator only through the date of payment of the 
        guarantee.</DELETED>
        <DELETED>    ``(5) Redemption of trust certificates.--During 
        the term of any trust certificate issued under this subsection, 
        the trust certificate may be called for redemption due to 
        prepayment or default of all debentures in the trust or 
        pool.</DELETED>
<DELETED>    ``(c) Full Faith and Credit.--The full faith and credit of 
the United States is pledged to the payment of all amounts that may be 
required to be paid under any guarantee of a trust certificate issued 
under this section.</DELETED>
<DELETED>    ``(d) Fees.--The Administrator shall not collect a fee for 
any guarantee of a trust certificate issued under this section, except 
that nothing in this subsection may be construed to preclude an agent 
of the Administrator from collecting a fee approved by the 
Administrator for the functions described in subsection 
(f)(2).</DELETED>
<DELETED>    ``(e) Subrogation.--</DELETED>
        <DELETED>    ``(1) In general.--If the Administrator pays a 
        claim under a guarantee issued under this section, the 
        Administration shall be subrogated fully to the rights 
        satisfied by such payment.</DELETED>
        <DELETED>    ``(2) Ownership rights.--No Federal, State, or 
        local law shall preclude or limit the exercise by the 
        Administrator of the ownership rights of the Administrator in 
        the debentures residing in a trust or pool against which trust 
        certificates are issued under this section.</DELETED>
<DELETED>    ``(f) Central Registration.--</DELETED>
        <DELETED>    ``(1) In general.--The Administrator may provide 
        for a central registration of all trust certificates issued 
        under this section.</DELETED>
        <DELETED>    ``(2) Contracting out.--</DELETED>
                <DELETED>    ``(A) In general.--The Administrator may 
                contract with an agent or agents to carry out on behalf 
                of the Administrator the pooling and the central 
                registration functions of this section including, 
                notwithstanding any other provision of law--</DELETED>
                        <DELETED>    ``(i) maintenance on behalf of and 
                        under the direction of the Administrator of 
                        such commercial bank accounts or investments in 
                        obligations of the United States as may be 
                        necessary to facilitate trusts or pools backed 
                        by debentures guaranteed under this part; 
                        and</DELETED>
                        <DELETED>    ``(ii) the issuance of trust 
                        certificates to facilitate such 
                        poolings.</DELETED>
                <DELETED>    ``(B) Fidelity bond or insurance 
                required.--An agent contracting with the Administrator 
                under this paragraph shall be required to provide a 
                fidelity bond or insurance in such amounts as the 
                Administrator determines to be necessary to fully 
                protect the interests of the Government.</DELETED>
        <DELETED>    ``(3) Regulation of brokers and dealers.--The 
        Administrator may regulate brokers and dealers in trust 
        certificates issued under this section.</DELETED>
        <DELETED>    ``(4) Electronic registration.--Nothing in this 
        subsection may be construed to prohibit the use of a book-entry 
        or other electronic form of registration for trust certificates 
        issued under this section.</DELETED>

<DELETED>``SEC. 358. FEES.</DELETED>

<DELETED>    ``Except as provided under section 357(d), the 
Administrator may charge such fees as the Administrator determines to 
be appropriate with respect to any guarantee issued or grant awarded 
under this part.</DELETED>

<DELETED>``SEC. 359. BANK PARTICIPATION.</DELETED>

<DELETED>    ``Any national bank, or any member bank of the Federal 
Reserve System or nonmember insured bank to the extent permitted under 
applicable State law, may invest in any 1 or more NMVC companies, or in 
any entity established to invest solely in NMVC companies, except that 
in no event shall the total amount of such investments of any such bank 
exceed 5 percent of the total capital and surplus of the 
bank.</DELETED>

<DELETED>``SEC. 360. REPORTING REQUIREMENTS.</DELETED>

<DELETED>    ``Each NMVC company shall provide to the Administrator 
such information as the Administrator may request, including reporting 
on the measurement criteria that the NMVC company proposed in the 
application submitted under section 354(a).</DELETED>

<DELETED>``SEC. 361. EXAMINATIONS.</DELETED>

<DELETED>    ``(a) In General.--Each NMVC company shall be subject to 
examinations made at the direction of the Investment Division of the 
Administration, which may be conducted with the assistance of a private 
sector entity that has both the qualifications to conduct and the 
expertise in conducting such examinations.</DELETED>
<DELETED>    ``(b) Assessment of Costs.--The cost of such examinations, 
including the compensation of the examiners, may in the discretion of 
the Administrator be assessed against the company examined and when so 
assessed shall be paid by such company.</DELETED>
<DELETED>    ``(c) Use of Fees.--Fees collected under this section 
shall be deposited in the account for salaries and expenses of the 
Administration and may be used solely to cover the costs of 
examinations and other program oversight activities.</DELETED>

<DELETED>``SEC. 362. INJUNCTIONS AND OTHER ORDERS.</DELETED>

<DELETED>    ``(a) In General.--If, in the judgment of the 
Administrator, an NMVC company or any other person has engaged or is 
about to engage in any act or practice that constitutes or will 
constitute a violation of any provision of this Act (or any rule, 
regulation, or order issued under this Act) or of a participation 
agreement entered into under this part--</DELETED>
        <DELETED>    ``(1) the Administrator may make application to 
        the proper district court of the United States or a United 
        States court of any place subject to the jurisdiction of the 
        United States for an order enjoining such act or practice, or 
        for an order enforcing compliance with such provision; 
        and</DELETED>
        <DELETED>    ``(2) such court shall--</DELETED>
                <DELETED>    ``(A) have jurisdiction over such 
                application and any ensuing proceedings; and</DELETED>
                <DELETED>    ``(B) upon a showing by the Administrator 
                that such NMVC company or other person has engaged or 
                is about to engage in any such act or practice, grant 
                without bond a permanent or temporary injunction, 
                restraining order, or other appropriate 
                order.</DELETED>
<DELETED>    ``(b) Powers of Court.--In any proceeding under subsection 
(a)--</DELETED>
        <DELETED>    ``(1) the court as a court of equity may, to such 
        extent as the court determines to be necessary, take exclusive 
        jurisdiction of the NMVC company and the assets thereof, 
        wherever located; and</DELETED>
        <DELETED>    ``(2) the court shall have jurisdiction in any 
        such proceeding to appoint a trustee or receiver to hold or 
        administer under the direction of the court the assets so 
        possessed.</DELETED>
<DELETED>    ``(c) Trustee or Receiver.--The Administrator is 
authorized to act as trustee or receiver of the NMVC company. Upon 
request by the Administrator, the court may appoint the Administrator 
to act in such capacity unless the court determines such appointment to 
be inequitable or otherwise inappropriate based on the special 
circumstances at issue.</DELETED>

<DELETED>``SEC. 363. UNLAWFUL ACTS AND OMISSIONS BY OFFICERS, 
              DIRECTORS, EMPLOYEES, OR AGENTS; BREACH OF FIDUCIARY 
              DUTY.</DELETED>

<DELETED>    ``(a) In General.--If an NMVC company violates any 
provision of this Act (or any rule or regulation issued under this 
Act), or of a participation agreement entered into under this part, by 
failing to comply with the terms thereof or by engaging in any act or 
practice that constitutes or will constitute a violation thereof, such 
violation shall be deemed to be also a violation and an unlawful act on 
the part of any person who, directly or indirectly, authorizes, orders, 
participates in, or causes, brings about, counsels, aids, or abets in 
the commission of any act, practice, or transaction that constitutes or 
will constitute, in whole or in part, such violation.</DELETED>
<DELETED>    ``(b) Breach of Fiduciary Duty.--It shall be unlawful for 
any officer, director, employee, agent, or other participant in the 
management or conduct of the affairs of an NMVC company to engage in 
any act or practice, or to omit any act, in breach of the fiduciary 
duty of such officer, director, employee, agent, or participant, if, as 
a result thereof, the NMVC company has suffered or is in imminent 
danger of suffering financial loss or other damage.</DELETED>
<DELETED>    ``(c) Other Prohibitions.--Except with the written consent 
of the Administrator, it shall be unlawful--</DELETED>
        <DELETED>    ``(1) for any person to take office as an officer, 
        director, or employee of an NMVC company, or to become an agent 
        or participant in the conduct of the affairs or management of 
        an NMVC company, if that person--</DELETED>
                <DELETED>    ``(A) has been convicted of a felony, or 
                any other criminal offense involving dishonesty or 
                breach of trust; or</DELETED>
                <DELETED>    ``(B) has been found civilly liable in 
                damages, or has been permanently or temporarily 
                enjoined by order, judgment, or decree of a court of 
                competent jurisdiction, by reason of any act or 
                practice involving fraud or breach of trust; 
                or</DELETED>
        <DELETED>    ``(2) for any person to continue to serve in any 
        of the above-described capacities, if that person is 
        subsequently--</DELETED>
                <DELETED>    ``(A) convicted of a felony, or any other 
                criminal offense involving dishonesty or breach of 
                trust; or</DELETED>
                <DELETED>    ``(B) found civilly liable in damages, or 
                is permanently or temporarily enjoined by an order, 
                judgment, or decree of a court of competent 
                jurisdiction, by reason of any act or practice 
                involving fraud or breach of trust.</DELETED>
<DELETED>    ``(d) Notice.--The Administrator may serve upon any 
officer, director, employee, or other participant in the conduct of the 
management or other affairs of an NMVC company a written notice of the 
intention of the Administrator to remove that person from his or her 
position whenever, in the opinion of the Administrator, that person--
</DELETED>
        <DELETED>    ``(1) has willfully committed any substantial 
        violation of--</DELETED>
                <DELETED>    ``(A) this Act (or any rule, regulation, 
                or order issued under this Act); or</DELETED>
                <DELETED>    ``(B) a participation agreement entered 
                into under this part; or</DELETED>
                <DELETED>    ``(C) a cease-and-desist order that has 
                become final; or</DELETED>
        <DELETED>    ``(2) has willfully committed or engaged in any 
        act, omission, or practice that constitutes a substantial 
        breach of fiduciary duty, and that such violation or such 
        breach of fiduciary duty is one involving personal dishonesty 
        on the part of such person.</DELETED>
<DELETED>    ``(e) Suspension or Removal.--The Administrator may 
suspend or remove from office any person upon whom the Administrator 
has served a notice under subsection (d), in accordance with the 
procedures set forth in section 313.</DELETED>

<DELETED>``SEC. 364. REGULATIONS.</DELETED>

<DELETED>    ``The Administrator may promulgate such regulations as the 
Administrator determines to be necessary to carry out this 
part.</DELETED>

<DELETED>``SEC. 365. AUTHORIZATIONS.</DELETED>

<DELETED>    ``(a) In General.--There is authorized to be appropriated 
to the Administration to carry out this part, to remain available until 
expended--</DELETED>
        <DELETED>    ``(1) such subsidy budget authority as may be 
        necessary to guarantee not more than $100,000,000 of 
        debentures; and</DELETED>
        <DELETED>    ``(2) not more than $30,000,000 for technical 
        assistance grants.</DELETED>
<DELETED>    ``(b) Period of Effectiveness.--The authority under 
subsection (a) shall be in effect during the period beginning on 
October 1, 2000, and ending on September 30, 2005.''.</DELETED>
<DELETED>    (b) Conforming Amendment.--Section 20(e)(1)(C) of the 
Small Business Act (15 U.S.C. 631 note) is amended by inserting ``part 
A of'' before ``title III''.</DELETED>

<DELETED>SEC. 102. BANKRUPTCY EXEMPTION FOR NMVC COMPANIES.</DELETED>

<DELETED>    Section 109(b)(2) of title 11, United States Code, is 
amended by inserting after ``homestead association,'' the following: 
``a new markets venture capital company (as defined in section 351 of 
the Small Business Investment Act of 1958),''.</DELETED>

<DELETED>SEC. 103. FEDERAL SAVINGS ASSOCIATIONS.</DELETED>

<DELETED>    Section 5(c)(4) of the Home Owners' Loan Act (12 U.S.C. 
1464(c)(4)) is amended by adding at the end the following:</DELETED>
                <DELETED>    ``(F) New markets venture capital 
                companies.--A Federal savings association may invest in 
                stock, obligations, or other securities of any new 
                markets venture capital company (as defined in section 
                351 of the Small Business Investment Act of 1958). A 
                Federal savings association may not make any investment 
                under this subparagraph if its aggregate outstanding 
                investment under this subparagraph would exceed 5 
                percent of the capital and surplus of such savings 
                association.''.</DELETED>

       <DELETED>TITLE II--COMMUNITY DEVELOPMENT VENTURE CAPITAL 
                          ASSISTANCE</DELETED>

<DELETED>SEC. 201. SHORT TITLE.</DELETED>

<DELETED>    This title may be cited as the ``Community Development 
Venture Capital Capacity Building and Professional Development Act of 
1999''.</DELETED>

<DELETED>SEC. 202. FINDINGS.</DELETED>

<DELETED>    Congress finds that--</DELETED>
        <DELETED>    (1) there is a need for the development and 
        expansion of organizations that provide private equity capital 
        to smaller businesses in areas in which equity-type capital is 
        scarce, such as inner cities and rural areas, in order to 
        create and retain jobs for low-income residents of those 
        areas;</DELETED>
        <DELETED>    (2) to invest successfully in smaller businesses, 
        particularly in inner cities and rural areas, requires highly 
        specialized investment and management skills;</DELETED>
        <DELETED>    (3) there is a shortage of professionals who 
        possess such skills and there are few training grounds for 
        individuals to obtain those skills;</DELETED>
        <DELETED>    (4) providing assistance to organizations that 
        provide specialized technical assistance and training to 
        individuals and organizations seeking to enter or expand in 
        this segment of the market would stimulate small business 
        development and entrepreneurship in economically distressed 
        communities; and</DELETED>
        <DELETED>    (5) assistance from the Federal Government could 
        act as a catalyst to attract investment from the private sector 
        and would help to develop a specialized venture capital 
        industry focused on creating jobs, increasing business 
        ownership, and generating wealth in low-income 
        communities.</DELETED>

<DELETED>SEC. 203. COMMUNITY DEVELOPMENT VENTURE CAPITAL 
              ACTIVITIES.</DELETED>

<DELETED>    (a) In General.--The Small Business Act (15 U.S.C. 631 et 
seq.) is amended--</DELETED>
        <DELETED>    (1) by redesignating section 34 as section 35; 
        and</DELETED>
        <DELETED>    (2) by inserting after section 33 the 
        following:</DELETED>

<DELETED>``SEC. 34. COMMUNITY DEVELOPMENT VENTURE CAPITAL 
              ACTIVITIES.</DELETED>

<DELETED>    ``(a) Definitions.--In this section:</DELETED>
        <DELETED>    ``(1) Community development venture capital 
        organization.--The term `community development venture capital 
        organization' means a privately-controlled organization that--
        </DELETED>
                <DELETED>    ``(A) has a primary mission of promoting 
                community development in low-income communities, as 
                defined by the Administrator, through investment in 
                private business enterprises; or</DELETED>
                <DELETED>    ``(B) administers or is in the process of 
                establishing a community development venture capital 
                fund for the purpose of making equity investments in 
                private business enterprises in such 
                communities.</DELETED>
        <DELETED>    ``(2) Developmental organization.--The term 
        `developmental organization'--</DELETED>
                <DELETED>    ``(A) means a public or private entity, 
                including a college or university, that provides 
                technical assistance to community development venture 
                capital organizations or that conducts research or 
                training in community development venture capital 
                investment; and</DELETED>
                <DELETED>    ``(B) may include an intermediary 
                organization.</DELETED>
        <DELETED>    ``(3) Intermediary organization.--The term 
        `intermediary organization'--</DELETED>
                <DELETED>    ``(A) means a private, nonprofit entity 
                that has--</DELETED>
                        <DELETED>    ``(i) a primary mission of 
                        promoting community development through 
                        investment in private businesses in low-income 
                        communities; and</DELETED>
                        <DELETED>    ``(ii) significant prior 
                        experience in providing technical assistance or 
                        financial assistance to community development 
                        venture capital organizations;</DELETED>
                <DELETED>    ``(B) may include community development 
                venture capital organizations.</DELETED>
<DELETED>    ``(b) Authority.--In order to promote the development of 
community development venture capital organizations, the Administrator, 
may--</DELETED>
        <DELETED>    ``(1) enter into contracts with 1 or more 
        developmental organizations to carry out training and research 
        activities under subsection (c); and</DELETED>
        <DELETED>    ``(2) make grants in accordance with this 
        section--</DELETED>
                <DELETED>    ``(A) to developmental organizations to 
                carry out training and research activities under 
                subsection (c); and</DELETED>
                <DELETED>    ``(B) to intermediary organizations to 
                provide intensive marketing, management, and technical 
                assistance and training to community development 
                venture capital organizations under subsection 
                (d).</DELETED>
<DELETED>    ``(c) Training and Research Activities.--</DELETED>
        <DELETED>    ``(1) In general.--Subject to paragraph (2), a 
        developmental organization that receives a grant under 
        subsection (b) shall use the funds made available through the 
        grant for 1 or more of the following training and research 
        activities:</DELETED>
                <DELETED>    ``(A) Strengthening professional skills.--
                Creating and operating training programs to enhance the 
                professional skills for individuals in community 
                development venture capital organizations or operating 
                private community development venture capital 
                funds.</DELETED>
                <DELETED>    ``(B) Increasing interest in community 
                development venture capital.--Creating and operating a 
                program to select and place students and recent 
                graduates from business and related professional 
                schools as interns with community development venture 
                capital organizations and intermediary organizations 
                for a period of up to 1 year, and to provide stipends 
                for such interns during the internship 
                period.</DELETED>
                <DELETED>    ``(C) Promoting `best practices'.--
                Organizing an annual national conference for community 
                development venture capital organizations to discuss 
                and share information on the best practices regarding 
                issues relevant to the creation and operation of 
                community development venture capital 
                organizations.</DELETED>
                <DELETED>    ``(D) Mobilizing academic resources.--
                Encouraging the formation of 1 or more centers for the 
                study of community development venture capital at 
                graduate schools of business and management, providing 
                funding for the development of materials for courses on 
                topics in this area, and providing funding for research 
                on economic, operational, and policy issues relating to 
                community development venture capital.</DELETED>
        <DELETED>    ``(2) Limitation.--The Administrator shall ensure 
        that not more than 25 percent of the amount made available to 
        carry out this section is used for activities described in 
        paragraph (1).</DELETED>
<DELETED>    ``(d) Intensive Marketing, Management, and Technical 
Assistance and Training.--An intermediary organization that receives a 
grant under subsection (b) shall use the funds made available through 
the grant to provide intensive marketing, management, and technical 
assistance and training to promote the development of community 
development venture capital organizations, which assistance may include 
grants to community development venture capital organizations for the 
start up costs and operating support of those organizations.</DELETED>
<DELETED>    ``(e) Matching Contribution Requirement.--The 
Administrator shall require, as a condition of any grant made to an 
intermediary organization under this section, that a matching 
contribution equal to the amount of such grant be provided from sources 
other than the Federal Government.</DELETED>
<DELETED>    ``(f) Authorization of Appropriations.--There is 
authorized to be appropriated to carry out this section $20,000,000 for 
fiscal years 2000 through 2003, to remain available until 
expended.''.</DELETED>
<DELETED>    (b) Requirements.--The Administrator of the Small Business 
Administration may promulgate such regulations as may be necessary to 
carry out section 34 of the Small Business Act, as amended by this 
section, which regulations may take effect upon issuance.</DELETED>

              <DELETED>TITLE III--BUSINESS LINC</DELETED>

<DELETED>SEC. 301. GRANTS AUTHORIZED.</DELETED>

<DELETED>    Section 8 of the Small Business Act (15 U.S.C. 637) is 
amended by adding at the end the following:</DELETED>
<DELETED>    ``(m) Business Linc Grants.--</DELETED>
        <DELETED>    ``(1) In general.--The Administrator may make 
        grants to and enter into cooperative agreements with any 
        coalition of private or public sector participants that--
        </DELETED>
                <DELETED>    ``(A) expand business-to-business 
                relationships between large and small businesses; 
                and</DELETED>
                <DELETED>    ``(B) provide businesses, directly or 
                indirectly, with online information and a database of 
                companies that are interested in mentor-protege 
                programs or community-based, state-wide, or local 
                business development programs.</DELETED>
        <DELETED>    ``(2) Matching requirements.--</DELETED>
                <DELETED>    ``(A) In general.--Subject to subparagraph 
                (B), the Administrator may make grants to and enter 
                into cooperative agreements with any coalition of 
                private or public sector participants if the coalition 
                provides a matching amount, either in-kind or in cash, 
                equal to the grant amount.</DELETED>
                <DELETED>    ``(B) Waiver.--In the best interests of 
                the program, the Administrator may waive the 
                requirements for matching funds to be provided by the 
                coalition.</DELETED>
        <DELETED>    ``(3) Authorization of appropriations.--There is 
        authorized to be appropriated to carry out this subsection 
        $3,000,000 for each of fiscal years 2000 through 2003, to 
        remain available until expended.''.</DELETED>

<DELETED>SEC. 302. REGULATIONS.</DELETED>

<DELETED>    The Administrator of the Small Business Administration may 
promulgate such regulations as the Administration determines to be 
necessary to carry out this title and the amendment made by this 
title.</DELETED>

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Community 
Development and Venture Capital Act of 2000''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.

              TITLE I--NEW MARKETS VENTURE CAPITAL PROGRAM

Sec. 101. New Markets Venture Capital Program.
Sec. 102. Bankruptcy exemption for NMVC companies.
Sec. 103. Federal savings associations.

       TITLE II--COMMUNITY DEVELOPMENT VENTURE CAPITAL ASSISTANCE

Sec. 201. Findings.
Sec. 202. Community development venture capital activities.

                        TITLE III--BUSINESS LINC

Sec. 301. Grants authorized.
Sec. 302. Regulations.

              TITLE I--NEW MARKETS VENTURE CAPITAL PROGRAM

SEC. 101. NEW MARKETS VENTURE CAPITAL PROGRAM.

    (a) In General.--Title III of the Small Business Investment Act of 
1958 (15 U.S.C. 681 et seq.) is amended--
            (1) by striking the title designation and heading and 
        inserting the following:

               ``TITLE III--INVESTMENT DIVISION PROGRAMS

          ``Subtitle A--Small Business Investment Companies'';

        and
            (2) by adding at the end the following:

           ``Subtitle B--New Markets Venture Capital Program

``SEC. 351. DEFINITIONS.

    ``In this subtitle--
            ``(1) the term `eligible company' means a company that--
                    ``(A) is a newly formed for-profit entity, which 
                may be a newly formed for-profit subsidiary of an 
                existing entity; and
                    ``(B) has a management team with experience in 
                community development financing or relevant venture 
                capital financing;
            ``(2) the term `low-income individual' means an individual 
        whose income (adjusted for family size) does not exceed--
                    ``(A) for metropolitan areas, 80 percent of the 
                area median income; and
                    ``(B) for nonmetropolitan areas, the greater of--
                            ``(i) 80 percent of the area median income; 
                        or
                            ``(ii) 80 percent of the statewide 
                        nonmetropolitan area median income;
            ``(3) the term `low-income geographic area' means--
                    ``(A) any population census tract (or in the case 
                of an area that is not tracted for population census 
                tracts, the equivalent county division, as defined by 
                the Bureau of the Census of the Department of Commerce 
                for purposes of defining poverty areas), if--
                            ``(i) the poverty rate for that census 
                        tract is not less than 20 percent;
                            ``(ii) in the case of a tract--
                                    ``(I) that is located within a 
                                metropolitan area, 50 percent or more 
                                of the households in that census tract 
                                have an income equal to less than 60 
                                percent of the area median gross 
                                income; or
                                    ``(II) that is not located within a 
                                metropolitan area, the median household 
                                income for such tract does not exceed 
                                80 percent of the statewide median 
                                household income; or
                            ``(iii) as determined by the Administrator 
                        based on objective criteria, a substantial 
                        population of low-income individuals reside, an 
                        inadequate access to investment capital exists, 
                        or other indications of economic distress exist 
                        in that census tract; or
                    ``(B) any area located within--
                            ``(i) a HUBZone (as defined in section 3(p) 
                        of the Small Business Act and the implementing 
                        regulations issued under that section);
                            ``(ii) an urban empowerment zone or urban 
                        enterprise community (as designated by the 
                        Secretary of Housing and Urban Development); or
                            ``(iii) a rural empowerment zone or rural 
                        enterprise community (as designated by the 
                        Secretary of Agriculture);
            ``(4) the terms `new markets venture capital company' and 
        `NMVC company' mean a company that has been designated as a new 
        markets venture capital company by the Administrator under 
        section 354(d);
            ``(5) the term `participation agreement' means an agreement 
        between the Administrator and a company granted final approval 
        under section 354(d) that--
                    ``(A) details the operating plan and investment 
                criteria of the company; and
                    ``(B) requires the company to make investments in 
                smaller enterprises, at least 80 percent of which are 
                located in low-income geographic areas; and
            ``(6) the term `specialized small business investment 
        company' means any small business investment company that--
                    ``(A) invests solely in small business concerns 
                that contribute to a well-balanced national economy by 
                facilitating ownership in such concerns by persons 
                whose participation in the free enterprise system is 
hampered because of social or economic disadvantages;
                    ``(B) is organized or chartered under State 
                business or nonprofit corporations statutes, or formed 
                as a limited partnership; and
                    ``(C) was licensed under section 301(d), as in 
                effect before September 30, 1996.

``SEC. 352. PURPOSES.

    ``The purposes of this subtitle are--
            ``(1) to encourage venture capital investment in smaller 
        enterprises located within urban and rural areas;
            ``(2) to promote the creation of wealth, economic 
        development, and job opportunities in low-income geographic 
        areas; and
            ``(3) to establish a venture capital program, which shall 
        be administered by the Administrator--
                    ``(A) to make grants to NMVC companies and 
                specialized small business investment companies for the 
                purpose of providing marketing, management, and 
                technical assistance to smaller enterprises financed, 
                or expected to be financed, by such companies; and
                    ``(B) to guarantee debentures issued by NMVC 
                companies to enable such companies to make venture 
                capital investments in smaller enterprises within urban 
                and rural areas.

``SEC. 353. PROGRAM ESTABLISHMENT.

    ``There is established the New Markets Venture Capital Program, 
under which the Administrator is authorized--
            ``(1) to make grants to NMVC companies and specialized 
        small business investment companies, as provided in section 
        355; and
            ``(2) to guarantee debentures issued by NMVC companies, as 
        provided in section 356.

``SEC. 354. SELECTION OF NMVC COMPANIES.

    ``(a) Applications.--In order to be eligible to participate in the 
program under this subtitle as an NMVC company, an eligible company 
shall submit to the Administrator an application, within such period of 
time as the Administrator shall establish, which shall include--
            ``(1) a business plan that--
                    ``(A) includes the information referred to in 
                subparagraph (A) of section 351(5); and
                    ``(B) describes the manner and geographic areas in 
                which the applicant will--
                            ``(i) make successful venture capital 
                        investments in smaller enterprises described in 
                        subparagraph (B) of section 351(5); and
                            ``(ii) provide marketing, management, and 
                        technical assistance to those enterprises;
            ``(2) the qualifications and general business reputation of 
        the management of the applicant, specifically addressing--
                    ``(A) the experience of the management in making 
                venture capital investments in smaller enterprises 
                described in section 351(5)(B); and
                    ``(B) the success of those investments in terms of 
                business growth, jobs created, and such other factors 
                as the Administrator may require;
            ``(3) a description of the manner in which the applicant 
        will interface with community organizations;
            ``(4) a proposal describing the manner in which grant 
        amounts made available under this subtitle would provide 
        marketing, management, and technical assistance to smaller 
        enterprises expected to be financed by the applicant;
            ``(5) proposed criteria by which to evaluate the 
        performance of the applicant in meeting program objectives;
            ``(6) the management and financial strength of any parent 
        or affiliated firm, or any firm essential to the success of the 
        business plan of the applicant;
            ``(7) with respect to binding commitments to be made to the 
        company under this subtitle, an estimate of the ratio of cash 
        to in-kind contributions; and
            ``(8) such other information as the Administrator may 
        require.
    ``(b) Criteria for Conditional Approval.--
            ``(1) In general.--Upon receipt of an application submitted 
        under subsection (a), the Administrator shall review the 
        application and make a determination regarding whether to grant 
        conditional approval to the applicant to operate as an NMVC 
        company during the time period described in subsection (c), 
        based on--
                    ``(A) the geographic area and employment 
                characteristics of the smaller enterprises in which the 
                proposed investments of the NMVC company will be made 
                (in order to promote investment nationwide);
                    ``(B) the likelihood that the applicant will meet 
                the goals of the business plan of the applicant;
                    ``(C) the experience and background of the 
                management team of the company;
                    ``(D) the need for equity or equity-type 
                investments within the proposed investment areas;
                    ``(E) the extent to which the applicant will 
                concentrate its activities on serving its investment 
                areas;
                    ``(F) the likelihood that the applicant will be 
                able to satisfy the requirements of subsection (c);
                    ``(G) the extent to which the proposed activities 
                will expand economic opportunities within the 
                investment areas; and
                    ``(H) such other factors as the Administrator 
                determines to be appropriate.
            ``(2) Nationwide distribution.--The Administrator shall 
        select companies under paragraph (1) in such a way that 
        promotes investment nationwide.
    ``(c) Requirements for Final Approval.--
            ``(1) In general.--Subject to paragraph (2), each applicant 
        that is granted conditional approval by the Administrator to 
        operate as an NMVC company under subsection (b) shall, before 
        the expiration of a time period established by the 
        Administrator, not to exceed 24 months, beginning on the date 
        on which such conditional approval is granted--
                    ``(A) raise not less than $5,000,000 of contributed 
                capital or binding capital commitments from 1 or more 
                investors (other than an agency of the Federal 
Government) that meet criteria established by the Administrator; and
                    ``(B) in order to provide marketing, management, 
                and technical assistance, have--
                            ``(i) cash or binding commitments for 
                        contributions (in cash or in-kind) from 1 or 
                        more sources other than the Administration that 
                        meet criteria established by the Administrator, 
                        payable or available over a multiyear period 
                        acceptable to the Administrator (not to exceed 
                        10 years), in an amount equal to 30 percent of 
                        the capital and commitments raised under 
                        subparagraph (A);
                            ``(ii) purchased an annuity from an 
                        insurance company acceptable to the 
                        Administrator, using amounts (other than the 
                        amounts raised to satisfy the requirements of 
                        subparagraph (A)) from any source other than 
                        the Administration, that would yield cash 
                        payments over a multiyear period acceptable to 
                        the Administrator (not to exceed 10 years), in 
                        an amount equal to 30 percent of the capital 
                        and commitments raised under subparagraph (A); 
                        or
                            ``(iii) cash or binding commitments for 
                        contributions (in cash or in-kind) of the type 
                        described in clause (i) and have purchased an 
                        annuity of the type described in clause (ii), 
                        that in the aggregate make available, over a 
                        multiyear period acceptable to the 
                        Administrator (not to exceed 10 years), an 
                        amount equal to 30 percent of the capital and 
                        commitments raised under subparagraph (A).
            ``(2) Exception.--The Administrator may, in the discretion 
        of the Administrator and based upon a showing of special 
        circumstances and good cause, consider an applicant to have 
        satisfied the requirements of paragraph (1)(B) if the applicant 
        has--
                    ``(A) a viable plan that reasonably projects the 
                capacity of the applicant to raise the amount (in cash 
                or in-kind) required under paragraph (1)(B); and
                    ``(B) binding commitments in an amount equal to not 
                less than 20 percent of the total amount required under 
                paragraph (1)(B).
    ``(d) Grant of Final Approval; Designation.--The Administrator 
shall, with respect to each applicant conditionally approved to operate 
as an NMVC company under subsection (b), either--
            ``(1) grant final approval to the applicant to operate as 
        an NMVC company under this subtitle and designate the applicant 
        as an NMVC company, if the applicant--
                    ``(A) satisfies the requirements of subsection (c) 
                on or before the expiration of the time period 
                described in that subsection; and
                    ``(B) enters into a participation agreement with 
                the Administrator; or
            ``(2) if the applicant fails to satisfy the requirements of 
        subsection (c) on or before the expiration of the time period 
        described in that subsection, revoke the conditional approval 
        granted under subsection (b).

``SEC. 355. TECHNICAL ASSISTANCE GRANTS.

    ``(a) Grants.--
            ``(1) Grants to nmvc's.--
                    ``(A) In general.--The Administrator, in accordance 
                with such terms and conditions as the Administrator may 
                require, is authorized to award 1 or more grants to 
                each NMVC company, which shall be used to provide 
                marketing, management, and technical assistance for the 
                benefit of smaller enterprises financed, or expected to 
                be financed, by the NMVC company.
                    ``(B) Grant amount.--Subject to subparagraph (C), 
                the amount of a grant awarded to an NMVC company under 
                this subsection shall be equal to 30 percent of the 
                amount of capital and commitments raised under section 
                354(c)(1)(A).
                    ``(C) Matching requirement.--In order to receive 
                funds under a grant awarded under this subsection, an 
                NMVC company shall provide a matching contribution (in 
                cash or in-kind) from sources other than the 
                Administration, in an amount equal to the funds to be 
                received.
            ``(2) Grants to specialized small business investment 
        companies.--
                    ``(A) Authority.--In accordance with this section, 
                the Administrator may make grants to specialized small 
                business investment companies to provide marketing, 
                management, and technical assistance to smaller 
                enterprises, if the smaller enterprise is financed, or 
                expected to be financed, by such companies after the 
                effective date of the Community Development and Venture 
                Capital Act of 2000.
                    ``(B) Use of funds.--The proceeds of a grant made 
                under this paragraph may be used by the company 
                receiving such grant only to provide marketing, 
                management, and technical assistance in connection with 
                one or more equity or equity-type investments (made 
                with capital raised after the effective date of the 
                Community Development and Venture Capital Act of 2000) 
                in one or more smaller enterprises located in low-
                income geographic areas.
                    ``(C) Submission of plans.--A specialized small 
                business investment company shall be eligible for a 
                grant under this section only if the company submits to 
                the Administrator, in such form and manner as the 
                Administrator may require, a plan for use of the grant.
                    ``(D) Grant amount.--Subject to subparagraph (E), 
                the amount of a grant awarded to a specialized small 
                business investment company under this subsection shall 
                be equal to not more than 30 percent of the investments 
                of the specialized small business investment company 
                described in subparagraph (B).
                    ``(E) Matching requirement.--In order to receive 
                funds under a grant awarded under this subsection, a 
specialized small business investment company shall provide a matching 
contribution (in cash or in-kind) from sources other than the 
Administration, in an amount equal to the funds to be received.
            ``(3) Multiyear grants.--Amounts from a grant awarded under 
        this section shall be paid upon the direction of the 
        Administrator over a multiyear period of not to exceed 10 
        years.
            ``(4) Pro rata reductions.--If the amount made available to 
        carry out this section for a fiscal year is insufficient for 
        the Administrator to award grants in the amounts required under 
        paragraphs (1) and (2), the Administrator may make pro rata 
        reductions in the amounts otherwise payable to each NMVC 
        company or specialized small business investment company under 
        those paragraphs.
    ``(b) Supplemental Grants.--
            ``(1) In general.--In addition to any grant under 
        subsection (a), the Administrator, in accordance with such 
        terms and conditions as the Administrator may require, may make 
        1 or more supplemental grants to an NMVC company or specialized 
        small business investment company, which shall be used to 
        provide additional marketing, management, and technical 
        assistance for the benefit of smaller enterprises financed, or 
        expected to be financed, by the NMVC company or the specialized 
        small business investment company, as applicable.
            ``(2) Matching requirement.--The Administrator may require, 
        as a condition of any supplemental grant made under this 
        subsection, that the NMVC company or the specialized small 
        business investment company, as applicable, provide a matching 
        contribution (in cash or in-kind) from 1 or more sources other 
        than the Administration in an amount equal to the amount of the 
        supplemental grant.
    ``(c) Limitation.--No part of any grant made available under this 
section may be used for any purpose other than to provide marketing, 
management, and technical assistance to smaller enterprises financed, 
or expected to be financed, by an NMVC company or a specialized small 
business investment company, as applicable.

``SEC. 356. DEBENTURES.

    ``(a) In General.--The Administrator is authorized to fully and 
unconditionally guarantee the timely payment of principal and interest 
on debentures issued by NMVC companies, in accordance with such terms 
and conditions as the Administrator determines to be appropriate.
    ``(b) Full Faith and Credit.--The full faith and credit of the 
United States is pledged to the payment of all amounts that may be 
required to be paid under any guarantee under this section.
    ``(c) Debenture Requirements.--A debenture guaranteed under this 
section--
            ``(1) may be issued for a term of not to exceed 15 years;
            ``(2) shall bear interest at a rate approved by the 
        Administrator;
            ``(3) shall be subject to a requirement that not less than 
        25 percent of the proceeds of the debenture shall be invested 
        in smaller enterprises located in HUBZones (as defined in 
        section 3(p) of the Small Business Act (15 U.S.C. 632(p)); and
            ``(4) shall contain such other terms and conditions as the 
        Administrator may require.
    ``(d) Total Face Value.--
            ``(1) In general.--The total face amount of debentures 
        issued by an NMVC company and guaranteed under this section 
        that may be outstanding at any one time shall not exceed 150 
        percent of the contributed capital of the NMVC company, as 
        determined by the Administrator.
            ``(2) Contributed capital.--For purposes of this 
        subsection, the contributed capital of an NMVC company includes 
        capital that is deemed to be Federal funds contributed by an 
        investor other than an agency of the Federal Government.

``SEC. 357. ISSUANCE AND GUARANTEE OF TRUST CERTIFICATES.

    ``(a) In General.--The Administrator (or an agent of the 
Administrator) is authorized to cause a trust to issue trust 
certificates representing ownership of all or a fractional part of 
debentures guaranteed by the Administrator under section 356, if such 
trust certificates are based on and backed by a trust or pool approved 
by the Administrator and composed solely of debentures guaranteed under 
section 356.
    ``(b) Guarantee Authority.--
            ``(1) In general.--The Administrator is authorized, upon 
        such terms and conditions as the Administrator determines to be 
        appropriate, to fully and unconditionally guarantee the timely 
        payment of the principal of and interest on any trust 
        certificate issued under this section.
            ``(2) Reduction.--If a debenture in a trust or pool 
        described in subsection (a) is prepaid, or in the event of 
        default of a debenture, the guarantee of timely payment of 
        principal and interest on the related trust certificate issued 
        under this section shall be reduced in proportion to the 
        corresponding payment amount of principal and interest on the 
        trust certificates, provided that the guarantee of timely 
        payment of principal and interest on the trust certificates 
        after such reduction shall remain full and unconditional.
            ``(3) Accrual of interest.--Interest on prepaid or 
        defaulted debentures shall accrue and be guaranteed by the 
        Administrator only through the date of payment of the 
        guarantee.
            ``(4) Redemption of trust certificates.--During the term of 
        any trust certificate issued under this subsection, the trust 
        certificate may be called for redemption due to prepayment or 
        default of all debentures in the trust or pool.
    ``(c) Full Faith and Credit.--The full faith and credit of the 
United States is pledged to the payment of all amounts that may be 
required to be paid under any guarantee of a trust certificate issued 
under this section.
    ``(d) Fees.--The Administrator shall not collect a fee for any 
guarantee of a trust certificate issued under this section, except that 
nothing in this subsection may be construed to preclude an agent of the 
Administrator from collecting a fee approved by the Administrator for 
the functions described in subsection (f)(2).
    ``(e) Subrogation.--
            ``(1) In general.--If the Administrator pays a claim under 
        a guarantee issued under this section, the Administration shall 
        be subrogated fully to the rights satisfied by such payment.
            ``(2) Ownership rights.--No Federal, State, or local law 
        shall preclude or limit the exercise by the Administrator of 
        the ownership rights of the Administrator in the debentures 
        residing in a trust or pool against which trust certificates 
        are issued under this section.
    ``(f) Central Registration.--
            ``(1) In general.--The Administrator may provide for a 
        central registration of all trust certificates issued under 
        this section.
            ``(2) Contracting of functions.--
                    ``(A) In general.--The Administrator may contract 
                with an agent or agents to carry out on behalf of the 
                Administrator the pooling and the central registration 
                functions referred to in this section, including, 
                notwithstanding any other provision of law--
                            ``(i) maintenance on behalf of and under 
                        the direction of the Administrator of such 
                        commercial bank accounts or investments in 
                        obligations of the United States as may be 
                        necessary to facilitate trusts or pools backed 
                        by debentures guaranteed under this subtitle; 
                        and
                            ``(ii) the issuance of trust certificates 
                        to facilitate such poolings.
                    ``(B) Fidelity bond or insurance required.--An 
                agent contracting with the Administrator under this 
                paragraph shall be required to provide a fidelity bond 
                or insurance in such amounts as the Administrator 
                determines to be necessary to fully protect the 
                interests of the Government.
            ``(3) Regulation of brokers and dealers.--The Administrator 
        may regulate brokers and dealers in trust certificates issued 
        under this section.
            ``(4) Electronic registration.--Nothing in this subsection 
        may be construed to prohibit the use of a book-entry or other 
        electronic form of registration for trust certificates issued 
        under this section.

``SEC. 358. FEES.

    ``Except as provided under section 357(d), the Administrator may 
charge such fees as the Administrator determines to be appropriate with 
respect to any guarantee issued or grant awarded under this subtitle.

``SEC. 359. BANK PARTICIPATION.

    ``Any national bank, or any member bank of the Federal Reserve 
System or nonmember insured bank, to the extent permitted under 
applicable State law, may invest in any 1 or more NMVC companies, or in 
any entity established to invest solely in NMVC companies, except that 
in no event shall the total amount of such investments of any such bank 
exceed 5 percent of the total capital and surplus of the bank.

``SEC. 360. FEDERAL FINANCING BANK.

    ``Section 318 shall not apply to any debenture issued by a NMVC 
company under this subtitle.

``SEC. 361. REPORTING REQUIREMENTS.

    ``Each NMVC company shall provide to the Administrator such 
information as the Administrator may request, including--
            ``(1) information related to the measurement criteria that 
        the NMVC company proposed in the application submitted under 
        section 354(a);
            ``(2) documentation on the use of technical assistance 
        grants under this subtitle; and
            ``(3) in each case in which the company under this subtitle 
        makes an investment in, or a loan or grant to, a business that 
        is not located in a low-income geographic area, a report on the 
        number and percentage of employees of the business who reside 
        in such areas.

``SEC. 362. EXAMINATIONS.

    ``(a) In General.--Each NMVC company shall be subject to 
examinations made at the direction of the Investment Division of the 
Administration, which may be conducted with the assistance of a private 
sector entity that has both the qualifications to conduct and the 
expertise in conducting such examinations.
    ``(b) Assessment of Costs.--The cost of examinations under 
subsection (a), including the compensation of the examiners, may, in 
the discretion of the Administrator, be assessed against the company 
examined, and when so assessed shall be paid by such company.
    ``(c) Deposit of Fees.--Fees collected under this section shall be 
deposited in the account for salaries and expenses of the 
Administration.

``SEC. 363. INJUNCTIONS AND OTHER ORDERS.

    ``(a) In General.--If, in the judgment of the Administrator, an 
NMVC company or any other person has engaged or is about to engage in 
any act or practice that constitutes or will constitute a violation of 
any provision of this subtitle (or any rule, regulation, or order 
issued under this subtitle) or of a participation agreement entered 
into under this subtitle--
            ``(1) the Administrator may make application to the proper 
        district court of the United States or a United States court of 
        any place subject to the jurisdiction of the United States for 
        an order enjoining such act or practice, or for an order 
        enforcing compliance with such provision; and
            ``(2) such court shall--
                    ``(A) have jurisdiction over such application and 
                any ensuing proceedings; and
                    ``(B) upon a showing by the Administrator that such 
                NMVC company or other person has engaged or is about to 
                engage in any such act or practice, grant without bond 
                a permanent or temporary injunction, restraining order, 
                or other appropriate order.
    ``(b) Powers of Court.--In any proceeding under subsection (a)--
            ``(1) the court as a court of equity may, to such extent as 
        the court determines to be necessary, take exclusive 
        jurisdiction of the NMVC company and the assets thereof, 
        wherever located; and
            ``(2) the court shall have jurisdiction in any such 
        proceeding to appoint a trustee or receiver to hold or 
        administer under the direction of the court the assets so 
        possessed.
    ``(c) Trustee or Receiver.--The Administrator is authorized to act 
as trustee or receiver of the NMVC company referred to in subsection 
(a). Upon request by the Administrator, the court may appoint the 
Administrator to act in such capacity, unless the court determines such 
appointment to be inequitable or otherwise inappropriate based on the 
special circumstances at issue.

``SEC. 364. UNLAWFUL ACTS AND OMISSIONS BY OFFICERS, DIRECTORS, 
              EMPLOYEES, OR AGENTS; BREACH OF FIDUCIARY DUTY.

    ``(a) In General.--If an NMVC company violates any provision of 
this subtitle (or any rule or regulation issued under this subtitle), 
or of a participation agreement entered into under this subtitle, by 
failing to comply with the terms thereof or by engaging in any act or 
practice that constitutes or will constitute a violation thereof, such 
violation shall be deemed to be also a violation and an unlawful act on 
the part of any person who, directly or indirectly, authorizes, orders, 
participates in, or causes, brings about, counsels, aids, or abets in 
the commission of any act, practice, or transaction that constitutes or 
will constitute, in whole or in part, such violation.
    ``(b) Breach of Fiduciary Duty.--It shall be unlawful for any 
officer, director, employee, agent, or other participant in the 
management or conduct of the affairs of an NMVC company to engage in 
any act or practice, or to omit any act, in breach of the fiduciary 
duty of such officer, director, employee, agent, or participant, if, as 
a result thereof, the NMVC company has suffered or is in imminent 
danger of suffering financial loss or other damage.
    ``(c) Other Prohibitions.--Except with the written consent of the 
Administrator, it shall be unlawful--
            ``(1) for any person to take office as an officer, 
        director, or employee of an NMVC company, or to become an agent 
        or participant in the conduct of the affairs or management of 
        an NMVC company, if that person--
                    ``(A) has been convicted of a felony, or any other 
                criminal offense involving dishonesty or breach of 
                trust; or
                    ``(B) has been found civilly liable in damages, or 
                has been permanently or temporarily enjoined by order, 
                judgment, or decree of a court of competent 
                jurisdiction, by reason of any act or practice 
                involving fraud or breach of trust; or
            ``(2) for any person to continue to serve in any of the 
        capacities described in paragraph (1), if that person is 
        subsequently--
                    ``(A) convicted of a felony, or any other criminal 
                offense involving dishonesty or breach of trust; or
                    ``(B) found civilly liable in damages, or is 
                permanently or temporarily enjoined by an order, 
                judgment, or decree of a court of competent 
                jurisdiction, by reason of any act or practice 
                involving fraud or breach of trust.
    ``(d) Notice.--The Administrator may serve upon any officer, 
director, employee, or other participant in the conduct of the 
management or other affairs of an NMVC company a written notice of the 
intention of the Administrator to remove that person from his or her 
position whenever, in the opinion of the Administrator, that person--
            ``(1) has willfully committed any substantial violation 
        of--
                    ``(A) this subtitle (or any rule, regulation, or 
                order issued under this subtitle); or
                    ``(B) a participation agreement entered into under 
                this subtitle; or
                    ``(C) a cease-and-desist order that has become 
                final; or
            ``(2) has willfully committed or engaged in any act, 
        omission, or practice that constitutes a substantial breach of 
        fiduciary duty, and that such violation or such breach of 
        fiduciary duty is one involving personal dishonesty on the part 
        of such person.
    ``(e) Suspension or Removal.--The Administrator may suspend or 
remove from office any person upon whom the Administrator has served a 
notice under subsection (d), in accordance with the procedures set 
forth in section 313.

``SEC. 365. REGULATIONS.

    ``The Administrator may promulgate such regulations as the 
Administrator determines to be necessary to carry out this subtitle.

``SEC. 366. AUTHORIZATIONS.

    ``(a) In General.--There is authorized to be appropriated to the 
Administration, for fiscal years 2000 through 2005, to remain available 
until expended--
            ``(1) such subsidy budget authority as may be necessary to 
        guarantee $150,000,000 of debentures under this subtitle; and
            ``(2) $30,000,000 to make grants under this subtitle.
    ``(b) Funds Collected for Examinations.--Funds deposited under 
section 362(c) may be used only for the costs of examinations under 
section 362 and for the costs of other oversight activities with 
respect to the program established under this subtitle.''.
    (b) Conforming Amendment.--Section 20(e)(1)(C) of the Small 
Business Act (15 U.S.C. 631 note) is amended by inserting ``subtitle A 
of'' before ``title III''.
    (c) Clerical Amendment.--Subtitle A of title III of the Small 
Business Investment Company Act of 1958 (15 U.S.C. 681 et seq.), as so 
designated by this Act, is amended by striking ``this title'' each 
place that term appears and inserting ``this subtitle''.

SEC. 102. BANKRUPTCY EXEMPTION FOR NMVC COMPANIES.

    Section 109(b)(2) of title 11, United States Code, is amended by 
inserting after ``homestead association,'' the following: ``a new 
markets venture capital company (as defined in section 351 of the Small 
Business Investment Act of 1958),''.

SEC. 103. FEDERAL SAVINGS ASSOCIATIONS.

    Section 5(c)(4) of the Home Owners' Loan Act (12 U.S.C. 1464(c)(4)) 
is amended by adding at the end the following:
                    ``(F) New markets venture capital companies.--A 
                Federal savings association may invest in stock, 
                obligations, or other securities of any new markets 
                venture capital company (as defined in section 351 of 
                the Small Business Investment Act of 1958). A Federal 
                savings association may not make any investment under 
                this subparagraph if its aggregate outstanding 
                investment under this subparagraph would exceed 5 
                percent of the capital and surplus of such savings 
                association.''.

       TITLE II--COMMUNITY DEVELOPMENT VENTURE CAPITAL ASSISTANCE

SEC. 201. FINDINGS.

    Congress finds that--
            (1) there is a need for the development and expansion of 
        organizations that provide private equity capital to smaller 
        businesses in areas in which equity-type capital is scarce, 
        such as inner cities and rural areas, in order to create and 
        retain jobs for low-income residents of those areas;
            (2) to invest successfully in smaller businesses, 
        particularly in inner cities and rural areas, requires highly 
        specialized investment and management skills;
            (3) there is a shortage of professionals who possess such 
        skills and there are few training grounds for individuals to 
        obtain those skills;
            (4) providing assistance to organizations that provide 
        specialized technical assistance and training to individuals 
        and organizations seeking to enter or expand in this segment of 
        the market would stimulate small business development and 
        entrepreneurship in economically distressed communities; and
            (5) assistance from the Federal Government could act as a 
        catalyst to attract investment from the private sector and 
        would help to develop a specialized venture capital industry 
        focused on creating jobs, increasing business ownership, and 
        generating wealth in low-income communities.

SEC. 202. COMMUNITY DEVELOPMENT VENTURE CAPITAL ACTIVITIES.

    (a) In General.--The Small Business Act (15 U.S.C. 631 et seq.) is 
amended--
            (1) by redesignating section 34 as section 35; and
            (2) by inserting after section 33 the following:

``SEC. 34. COMMUNITY DEVELOPMENT VENTURE CAPITAL ACTIVITIES.

    ``(a) Definitions.--In this section, the following definitions 
shall apply:
            ``(1) Community development venture capital organization.--
        The term `community development venture capital organization' 
        means a privately-controlled organization that--
                    ``(A) has a primary mission of promoting community 
                development in low-income communities, as defined by 
                the Administrator, through investment in private 
                business enterprises; or
                    ``(B) administers or is in the process of 
                establishing a community development venture capital 
                fund for the purpose of making equity investments in 
                private business enterprises in such communities.
            ``(2) Developmental organization.--The term `developmental 
        organization'--
                    ``(A) means a public or private entity, including a 
                college or university, that provides technical 
                assistance to community development venture capital 
                organizations or that conducts research or training in 
                community development venture capital investment; and
                    ``(B) may include an intermediary organization.
            ``(3) Intermediary organization.--The term `intermediary 
        organization'--
                    ``(A) means a private, nonprofit entity that has--
                            ``(i) a primary mission of promoting 
                        community development through investment in 
private businesses in low-income communities; and
                            ``(ii) significant prior experience in 
                        providing technical assistance or financial 
                        assistance to community development venture 
                        capital organizations; and
                    ``(B) may include community development venture 
                capital organizations.
    ``(b) Authority.--In order to promote the development of community 
development venture capital organizations, the Administrator may--
            ``(1) enter into contracts with 1 or more developmental 
        organizations to carry out training and research activities 
        under subsection (c); and
            ``(2) make grants in accordance with this section--
                    ``(A) to developmental organizations to carry out 
                training and research activities under subsection (c); 
                and
                    ``(B) to intermediary organizations to provide 
                intensive marketing, management, and technical 
                assistance and training to community development 
                venture capital organizations under subsection (d).
    ``(c) Training and Research Activities.--
            ``(1) In general.--Subject to paragraph (2), a 
        developmental organization that receives a grant under 
        subsection (b) shall use the funds made available through the 
        grant for 1 or more of the following training and research 
        activities:
                    ``(A) Strengthening professional skills.--Creating 
                and operating training programs to enhance the 
                professional skills for individuals in community 
                development venture capital organizations or operating 
                private community development venture capital funds.
                    ``(B) Increasing interest in community development 
                venture capital.--Creating and operating a program to 
                select and place students and recent graduates from 
                business and related professional schools as interns 
                with community development venture capital 
                organizations and intermediary organizations for a 
                period of up to 1 year, and to provide stipends for 
                such interns during the internship period.
                    ``(C) Promoting `best practices'.--Organizing an 
                annual national conference for community development 
                venture capital organizations to discuss and share 
                information on the best practices regarding issues 
                relevant to the creation and operation of community 
                development venture capital organizations.
                    ``(D) Mobilizing academic resources.--Encouraging 
                the formation of 1 or more centers for the study of 
                community development venture capital at graduate 
                schools of business and management, providing funding 
                for the development of materials for courses on topics 
                in this area, and providing funding for research on 
                economic, operational, and policy issues relating to 
                community development venture capital.
            ``(2) Limitation.--The Administrator shall ensure that not 
        more than 25 percent of the amount made available to carry out 
        this section is used for the activities described in paragraph 
        (1).
    ``(d) Intensive Marketing, Management, and Technical Assistance and 
Training.--An intermediary organization that receives a grant under 
subsection (b) shall use the funds made available through the grant to 
provide intensive marketing, management, and technical assistance and 
training to promote the development of community development venture 
capital organizations, which assistance may include grants to community 
development venture capital organizations for the start up costs and 
operating support of those organizations.
    ``(e) Matching Contribution Requirement.--The Administrator shall 
require, as a condition of any grant made to an intermediary 
organization under this section, that a matching contribution equal to 
the amount of such grant be provided from sources other than the 
Federal Government.
    ``(f) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $20,000,000 for fiscal years 
2000 through 2005, to remain available until expended.''.
    (b) Requirements.--The Administrator of the Small Business 
Administration may promulgate such regulations as may be necessary to 
carry out section 34 of the Small Business Act, as added by this 
section, which regulations may take effect upon issuance.

                        TITLE III--BUSINESS LINC

SEC. 301. GRANTS AUTHORIZED.

    Section 8 of the Small Business Act (15 U.S.C. 637) is amended by 
adding at the end the following:
    ``(m) Business LINC Grants.--
            ``(1) In general.--The Administrator may make grants to and 
        enter into cooperative agreements with any coalition of private 
        or public sector participants that--
                    ``(A) expand business-to-business relationships 
                between large and small businesses; and
                    ``(B) provide businesses, directly or indirectly, 
                with information about companies that are interested in 
                mentor-protegee programs or community-based, state-
                wide, or local business development programs.
            ``(2) Matching requirements.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                Administrator may make grants to and enter into 
                cooperative agreements with any coalition of private or 
                public sector participants if the coalition provides a 
                matching amount, either in-kind or in cash, equal to 
                the grant amount.
                    ``(B) Waiver.--In the best interests of the program 
                established under this subsection, the Administrator 
                may waive the requirements for matching funds to be 
                provided by the coalition under subparagraph (A).
            ``(3) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $6,600,000 for 
        each of fiscal years 2000 through 2005, to remain available 
        until expended.''.

SEC. 302. REGULATIONS.

    The Administrator of the Small Business Administration may 
promulgate such regulations as the Administrator determines to be 
necessary to carry out this Act and the amendment made by this Act.


                                                       Calendar No. 759

106th CONGRESS

  2d Session

                                S. 1594

                          [Report No. 106-383]

_______________________________________________________________________

                                 A BILL

 To amend the Small Business Act and Small Business Investment Act of 
                                 1958.

_______________________________________________________________________

                            August 25, 2000

                       Reported with an amendment