[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1396 Introduced in Senate (IS)]

  1st Session
                                S. 1396

 To amend the Investment Company Act of 1940 to provide incentives for 
           small business investment, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 14, 2005

Mr. Allen (for himself and Mr. Santorum) introduced the following bill; 
which was read twice and referred to the Committee on Banking, Housing, 
                           and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
 To amend the Investment Company Act of 1940 to provide incentives for 
           small business investment, and for other purposes.

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

SECTION 1. SHORT TITLE.

     This Act may be cited as the ``Increased Capital Access for 
Growing Business Act''.

SEC. 2. AMENDMENTS TO THE INVESTMENT COMPANY ACT OF 1940.

    (a) Definition of Eligible Portfolio Company.--Section 2(a)(46)(C) 
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(46)(C)) is 
amended--
            (1) by striking clause (i) and inserting the following:
                            ``(i) it does not have any class of equity 
                        securities listed for trading on a national 
                        securities exchange or traded through the 
                        facilities of a national securities 
                        association, as described in section 15A of the 
                        Securities Exchange Act of 1934;'';
            (2) by striking ``or'' at the end of clause (iii);
            (3) by redesignating clause (iv) as clause (v); and
            (4) by inserting after clause (iii) the following:
                            ``(iv) the aggregate value of its 
                        outstanding publicly traded equity securities 
                        is not more than $250,000,000, except that the 
                        Commission may adjust such amount by rule, 
                        regulation, or order to reflect changes in one 
                        or more generally accepted indices or other 
                        indicators for small business, consistent with 
                        the public interest, the protection of 
                        investors, and the purposes fairly intended by 
                        the policy and provisions of this title; or''.
    (b) Assets of Business Development Companies.--Section 55(a)(1) of 
the Investment Company Act of 1940 (15 U.S.C. 80a-54(a)(1)) is 
amended--
            (1) in subparagraph (B), by striking ``securities with 
        respect to which a member of a national securities exchange, 
        broker, or dealer may extend or maintain credit to or for a 
        customer pursuant to rules or regulations adopted by the Board 
        of Governors of the Federal Reserve System under section 7 of 
        the Securities Exchange Act of 1934'' and inserting the 
        following: ``equity securities listed for trading on a national 
        securities exchange or traded through the facilities of a 
        national securities association, as described in section 15A of 
        the Securities Exchange Act of 1934'';
            (2) by striking ``or'' at the end of subparagraph (A);
            (3) by inserting ``or'' after the semicolon at the end of 
        subparagraph (B); and
            (4) by inserting after subparagraph (B) the following:
                    ``(C) from the issuer of such securities, which 
                issuer is described in subparagraphs (A) and (B) of 
                section 2(a)(46), but is not an eligible portfolio 
                company because the aggregate value of its outstanding 
                publicly traded equity securities is more than 
                $250,000,000 but not more than $500,000,000, if such 
                securities represent not more than 10 percent of the 
                total assets of the business development company 
                invested in securities described in paragraphs (1) 
                through (6) of this subsection;''.
                                 <all>