110 HR 3567 : Small Business Investment U.S. House of Representatives 2007-09-28 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
IIB 110th CONGRESS 1st Session H. R. 3567 IN THE SENATE OF THE UNITED STATES September 28, 2007 Received; read twice and referred to the Committee on Small Business and Entrepreneurship AN ACT To amend the Small Business Investment Act of 1958 to expand opportunities for investments in small businesses, and for other purposes.
1.
Short title; table of contents
(a)
Short title
This Act may be cited as the Small Business Investment Expansion Act of 2007. (b)
Table of contents
The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. Title I—Small Business Investment Company Program Sec. 101. Simplified maximum leverage limits. Sec. 102. Increased investments in women-owned and socially disadvantaged small businesses. Sec. 103. Increased investments in smaller enterprises. Sec. 104. Increased investments in small businesses creating new technologies, manufactured goods, or materials or providing services to reduce carbon emissions in the United States, reduce the use of non-renewable resources, minimize environmental impact, and relate people with the natural environment. Sec. 105. Simplified aggregate investment limitations. Title II—New Markets Venture Capital Program Sec. 201. Expansion of New Markets Venture Capital Program. Sec. 202. Improved nationwide distribution. Sec. 203. Increased investment in small manufacturers. Sec. 204. Updating definition of low-income geographic area. Sec. 205. Study on availability of equity capital. Sec. 206. Expanding operational assistance to conditionally approved companies. Sec. 207. Streamlined application for New Markets Venture Capital Program. Sec. 208. Elimination of matching requirement. Sec. 209. Simplified formula for operational assistance grants. Sec. 210. Authorization of appropriations and dedication to small manufacturing. Title III—Angel Investment Program Sec. 301. Establishment of Angel Investment Program. Title IV—Surety Bond Program Sec. 401. Study and report. Sec. 402. Preferred Surety Bond Program. Sec. 403. Denial of liability. Sec. 404. Increasing the bond threshold. Sec. 405. Fees. Title V—Venture Capital Investment Standards Sec. 501. Determining whether business concern is independently owned and operated. Title VI—Regulations Sec. 601. Regulations.
<enum>I</enum><header>Small Business Investment Company Program</header> <section id="HDFAAF5AD55644D87833E23271CE5AD39"><enum>101.</enum><header>Simplified maximum leverage limits</header><text display-inline="no-display-inline">Section 303(b) of the Small Business Investment Act of 1958 (<external-xref legal-doc="usc" parsable-cite="usc/15/683">15 U.S.C. 683(b)</external-xref>) is amended—</text> <paragraph id="HE571DDCD799A435FB8BA1B1E2690FA7E"><enum>(1)</enum><text>by amending paragraph (2) to read as follows:</text> <quoted-block display-inline="no-display-inline" id="HC3C91A83CB2041318F8124B0B37F7C00" style="OLC"> <paragraph id="HBCEB34535168495798E4923CD52C74F6"><enum>(2)</enum><header>Maximum leverage</header> <subparagraph id="H3D070E097034482DA7A6C6975257EDE5"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The maximum amount of outstanding leverage made available to any one company licensed under section 301(c) of this Act may not exceed the lesser of—</text> <clause id="HB8B8475150FD40DE8C00913BC070DB6C"><enum>(i)</enum><text>300 percent of such company’s private capital; or</text> </clause><clause id="H483F8B2B903F4453A4A1D6205096D2D8"><enum>(ii)</enum><text>$150,000,000.</text> </clause></subparagraph><subparagraph id="HC20A8F5F702447F6BA18C2C36D28228C"><enum>(B)</enum><header>Multiple licenses under common control</header><text>The maximum amount of outstanding leverage made available to two or more companies licensed under section 301(c) of this Act that are commonly controlled (as determined by the Administrator) and not under capital impairment may not exceed $225,000,000.</text> </subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph><paragraph id="HF0908136C2844CD3AF9695B28D15C7D0"><enum>(2)</enum><text>by striking paragraph (4).</text> </paragraph></section><section id="HFE3ED9D25AB54F3D83E5EF05166E63A6"><enum>102.</enum><header>Increased investments in women-owned and socially disadvantaged small businesses</header><text display-inline="no-display-inline">Section 303(b)(2) of the Small Business Investment Act of 1958 (<external-xref legal-doc="usc" parsable-cite="usc/15/683">15 U.S.C. 683(b)(2)</external-xref>), as amended by section 101, is further amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="HC2107B2400B045DC8C962E2491C20103" style="OLC"> <subparagraph id="H8D4A95838EC14464831C32C8532FB7F4"><enum>(C)</enum><header>Increased investments in women-owned and socially disadvantaged small businesses</header><text>The limits provided in subparagraphs (A)(ii) and (B) shall be $175,000,000 and $250,000,000, respectively, for any company that certifies in writing that not less than 50 percent of the company’s aggregate dollar amount of investments will be made in small businesses that prior to the investment are—</text> <clause id="HF5D25B252A9A41C8BA3FA0F21E42C65F"><enum>(i)</enum><text>majority owned by one or more—</text> <subclause id="H8C810B68F5D146E78B56BCBDC5B5DF1"><enum>(I)</enum><text>socially or economically disadvantaged individuals (as defined by Administrator);</text> </subclause><subclause id="H21301DDA79324B1590CB93CDC47024FD"><enum>(II)</enum><text>veterans of the Armed Forces; or</text> </subclause><subclause id="H8FB47A4FD381450DAF8F5C6FEAA16F"><enum>(III)</enum><text>current or former members of the National Guard or Reserve; or</text> </subclause></clause><clause id="H71B2828885D149598998FB6F37D32318"><enum>(ii)</enum><text>located in a low-income geographic area (as defined in section 351).</text> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H36134A82F7F046CC8F4C00E91F1EBC2E"><enum>103.</enum><header>Increased investments in smaller enterprises</header><text display-inline="no-display-inline">Section 303 of the Small Business Investment Act of 1958 (15 U.S.C. 683) is amended by striking subsection (d) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="HCDE9986D4CD24B89BBAC7E8E45438F29" style="OLC"> <subsection id="HE53ECE2313034435A8D1954EFD2802C5"><enum>(d)</enum><header>Increased investments in smaller enterprises</header><text display-inline="yes-display-inline">The Administrator shall require each licensee, as a condition of an application for leverage, to certify in writing that not less than 25 percent of the licensee’s aggregate dollar amount of financings will be provide to smaller enterprises (as defined in section 103(12)).</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H51DCB00E4D014995854B2C11423DF6EF"><enum>104.</enum><header>Increased investments in small businesses creating new technologies, manufactured goods, or materials or providing services to reduce carbon emissions in the United States, reduce the use of non-renewable resources, minimize environmental impact, and relate people with the natural environment</header><text display-inline="no-display-inline">Section 303 of the Small Business Investment Act of 1958 (15 U.S.C. 683), as amended by this Act, is further amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H0BFE17AE51E645C5835DAB58AF2B8EF4" style="OLC"> <subsection id="HEA977B91C43748DC92ED880004A3D481"><enum>(k)</enum><header>Increased investments in small businesses</header><text display-inline="yes-display-inline">The Administrator shall give consideration to investments in small businesses that are creating new technologies, manufactured goods, or materials, or providing services to reduce carbon emissions in the United States, reduce the use of non-renewable resources, minimize environmental impact, and relate people with the natural environment.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="HA3713A3FE33A45168158D446E3FCA646"><enum>105.</enum><header>Simplified aggregate investment limitations</header><text display-inline="no-display-inline">Section 306(a) of the Small Business Investment Act of 1958 (<external-xref legal-doc="usc" parsable-cite="usc/15/686">15 U.S.C. 686(a)</external-xref>) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="HF9704F52C58B482AA8CA128727D12FB0" style="OLC"> <subsection id="HC5C1059C0D514A68BE0000F64D750073"><enum>(a)</enum><text display-inline="yes-display-inline">If any small business investment company has obtained financing from the Administration and such financing remains outstanding, the aggregate amount of securities acquired and for which commitments may be issued by such company under the provisions of this title for any single enterprise shall not, without the approval of the Administration, exceed 10 percent of the sum of—</text> <paragraph id="H2FAF8401E89E4BD88E95B5AD903DDB09"><enum>(1)</enum><text>the private capital of such company; and</text> </paragraph><paragraph id="H9EECDCF0A8B44274806BB00BF2E0611"><enum>(2)</enum><text>the total amount of leverage projected by the company in the company’s business plan that was approved by the Administration at the time of the grant of the company’s license.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><enum>II</enum><header>New Markets Venture Capital Program</header> <section commented="no" id="H83F63819BAD447A0B300BF1868AD3074"><enum>201.</enum><header>Expansion of New Markets Venture Capital Program</header> <subsection id="H8BDDCFBD2F214171B2392F675035B01E"><enum>(a)</enum><header>Administration participation required</header><text display-inline="yes-display-inline">Section 353 of the Small Business Investment Act of 1958 (<external-xref legal-doc="usc" parsable-cite="usc/15/689b">15 U.S.C. 689b</external-xref>) is amended by striking <quote>under which the Administrator may</quote> and inserting <quote>under which the Administrator shall</quote>.</text> </subsection><subsection id="HFF5C0CFBF6F2464B9096917F9E68A8A1"><enum>(b)</enum><header>Report to Congress</header><text>Not later than 1 year after the date of the enactment of this Act, the Administrator of the Small Business Administration shall submit to Congress a report evaluating the success of the expansion of the New Markets Venture Capital Program under this section.</text> </subsection></section><section commented="no" id="H535F0ACE7B3C4AB1932100699E8833BB"><enum>202.</enum><header>Improved nationwide distribution</header><text display-inline="no-display-inline">Section 354 of the Small Business Investment Act of 1958 (15 U.S.C. 689c) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="HCC49C5C7F3284677B5CB1E280510ACDE" style="OLC"> <subsection id="H866F0D81DE0A4604AF3234F98E500017"><enum>(f)</enum><header>Geographic expansion</header><text>From among companies submitting applications under subsection (b), the Administrator shall consider the selection criteria and nationwide distribution under subsection (c) and shall, to the maximum extent practicable, approve at least one company from each geographic region of the Small Business Administration.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H10B7A840AB634B23BFDDBEF24C54F55D"><enum>203.</enum><header>Increased investment in small manufacturers</header><text display-inline="no-display-inline">Section 354(d)(1) of the Small Business Investment Act of 1958 (<external-xref legal-doc="usc" parsable-cite="usc/15/689c">15 U.S.C. 689c(d)(1)</external-xref>) is amended—</text> <paragraph id="HF1AB207B762648E585158B188DC7179B"><enum>(1)</enum><text>by striking <quote>Each</quote> and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="H3673E74F15934A7093D2C5F1905C62D" style="OLC"> <subparagraph id="H1A5E30B84EAF46F881679F1FC36D3C50"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (B), each</text> </subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph><paragraph id="H57B33D241F724374986BF4BF88717CA3"><enum>(2)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H28B7FA611FBB4673BA716221686049CA" style="OLC"> <subparagraph id="H4598DC65CB384A1091D0199E8ECFDA91"><enum>(B)</enum><header>Small manufacturer investment capital requirements</header><text>Each conditionally approved company engaged primarily in development of and investment in small manufacturers shall raise not less than $3,000,000 of private capital or binding capital commitments from one or more investors (other than agencies or departments of the Federal Government) who meet criteria established by the Administrator.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="HCC82F3F092724BCEA2A4E635EA1653C1"><enum>204.</enum><header>Updating definition of low-income geographic area</header><text display-inline="no-display-inline">Section 351 of the Small Business Investment Act of 1958 (15 U.S.C. 689) is amended—</text> <paragraph id="H251EC3CBD1634E6FBED2CFE7C2D7B400"><enum>(1)</enum><text>by striking paragraphs (2) and (3);</text> </paragraph><paragraph id="H559E3594414448FDAA00457FC8B1C68D"><enum>(2)</enum><text>by inserting after paragraph (1) the following:</text> <quoted-block display-inline="no-display-inline" id="H0111D1F78666421900E3E4B8EB137538" style="OLC"> <paragraph id="H39D9464255124E819023A14C16CFFD55"><enum>(2)</enum><header>Low-income geographic area</header><text>The term <quote>low-income geographic area</quote> has the same meaning given the term <quote>low-income community</quote> in section 45D(e) of the Internal Revenue Code of 1986 (26 U.S.C. 45D(e)).</text> </paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph><paragraph id="H9A0AF6A393404EC288BD1E79330053C2"><enum>(3)</enum><text>by redesignating paragraphs (4) through (8) as (3) through (7), respectively.</text> </paragraph></section><section id="HD658C485AC4E4BF382CC5798A511D383"><enum>205.</enum><header>Study on availability of equity capital</header> <subsection id="HB709C92838024DFCB86905E4A42C02E5"><enum>(a)</enum><header>Study required</header><text>Before the expiration of the 180-day period that begins on the date of the enactment of this Act, the Chief Counsel for Advocacy of the Small Business Administration shall conduct a study on the availability of equity capital in low-income urban and rural areas.</text> </subsection><subsection id="HCA69B7297ED8486886B9FF1903FC4FC"><enum>(b)</enum><header>Report</header><text>Not later than 90 days after the completion of the study under subsection (a) the Administrator of the Small Business Administration shall submit to Congress a report containing the findings of the study required under subsection (a) and any recommendations of the Administrator based on such study.</text> </subsection></section><section id="HA17342CABB3144CF81472811637C302F"><enum>206.</enum><header>Expanding operational assistance to conditionally approved companies</header> <subsection id="HC72CE7CAA4224A3D93295FF94FCEBB71"><enum>(a)</enum><header>Operational assistance grants to conditionally approved companies</header><text display-inline="yes-display-inline">Section 358(a) of the Small Business Investment Act of 1958 (<external-xref legal-doc="usc" parsable-cite="usc/15/689">15 U.S.C. 689(a)</external-xref>) is amended by adding at the end the following new paragraph:</text> <quoted-block id="HC184AF334646473CA460B6CDAAC656E1" style="OLC"> <paragraph id="HC73069E3FEE74E9DB2002E66962066CD"><enum>(6)</enum><header>Grants to conditionally approved companies</header> <subparagraph id="H271B538C2001454682948DF6078405EA"><enum>(A)</enum><header>In general</header><text>Subject to subparagraphs (A) and (B), upon the request of a company conditionally-approved under section 354(c), the Administrator shall make a grant to the company under this subsection.</text> </subparagraph><subparagraph id="H9968B8AB04584CE09B6D79717080A926"><enum>(B)</enum><header>Repayment by companies not approved</header><text>If a company receives a grant under paragraph (6) and does not enter into a participation agreement for final approval, the company shall repay the amount of the grant to the Administrator.</text> </subparagraph><subparagraph id="H185A3667D7134822B1E6F721789CA26"><enum>(C)</enum><header>Deduction from grant to approved company</header><text>If a company receives a grant under paragraph (6) and receives final approval under section 354(e), the Administrator shall deduct the amount of the grant under that paragraph from the total grant amount that the company receives for operational assistance.</text> </subparagraph><subparagraph id="HA21C730B6E8C4EDB87442DFC39A300F4"><enum>(D)</enum><header>Amount of grant</header><text>No company may receive a grant of more than $50,000 under this paragraph.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HC2652458C34048B4B0485BCAFE1636C5"><enum>(b)</enum><header>Limitation on time for final approval</header><text>Section 354(d) of the Small Business Investment Act of 1958 (<external-xref legal-doc="usc" parsable-cite="usc/15/689c">15 U.S.C. 689c(d)</external-xref>) is amended in the matter preceding paragraph (1) by striking <quote>a period of time, not to exceed 2 years,</quote> and inserting <quote>2 years</quote>.</text> </subsection><subsection id="H8F7E84103A52486D838DF727E3C621F"><enum>(c)</enum><header>Expanded definition of operational assistance</header><text display-inline="yes-display-inline">Section 351(5) of the Small Business Investment Act of 1958 (<external-xref legal-doc="usc" parsable-cite="usc/15/689">15 U.S.C. 689(5)</external-xref>) is amended by inserting before the period at the end the following: <quote>, including assistance on how to implement energy efficiency and sustainable practices that reduce the use of non-renewable resources or minimize environmental impact and reduce overall costs and increase health of employees</quote>.</text> </subsection></section><section id="H52A9B62A7CA7429CA9FE9030AD3CBE87"><enum>207.</enum><header>Streamlined application for New Markets Venture Capital Program</header><text display-inline="no-display-inline">Not later than 60 days after the date of the enactment of this section, the Administrator of the Small Business Administration shall prescribe standard documents for final New Markets Venture Capital Company approval application under section 354(e) of the Small Business Investment Act of 1958 (<external-xref legal-doc="usc" parsable-cite="usc/15/689c">15 U.S.C. 689c(e)</external-xref>). The Administrator shall assure that the standard documents shall be designed to substantially reduce the cost burden of the application process on the companies involved.</text> </section><section id="HBA1D4647FBF7463EACD8D26B001198FB"><enum>208.</enum><header>Elimination of matching requirement</header><text display-inline="no-display-inline">Section 354(d)(2)(A)(i) of the Small Business Investment Act of 1958 (15 U.S.C. 689c(d)(2)(A)(i)) is amended—</text> <paragraph id="HA15764469DCC4303BFAA05DE65DEAC27"><enum>(1)</enum><text>in subclause (I) by adding <quote>and</quote> at the end;</text> </paragraph><paragraph id="H265418188F9F4D50B2357BC78E1117AE"><enum>(2)</enum><text>in subclause (II) by striking <quote>and</quote> at the end; and</text> </paragraph><paragraph id="H966E8ADB100047FD8DAFE4AFE800C7E7"><enum>(3)</enum><text>by striking subclause (III).</text> </paragraph></section><section id="H6617A2D633BA45D8A6551502C6151729"><enum>209.</enum><header>Simplified formula for operational assistance grants</header><text display-inline="no-display-inline">Section 358(a)(4)(A) of the Small Business Investment Act of 1958 (<external-xref legal-doc="usc" parsable-cite="usc/15/689g">15 U.S.C. 689g(a)(4)(A)</external-xref>) is amended—</text> <paragraph id="HA7DDE6FB925B4786989D6B002BC44B37"><enum>(1)</enum><text>by striking <quote>shall be equal to</quote> and all that follows through the period at the end and by inserting <quote>shall be equal to the lesser of—</quote>; and</text> </paragraph><paragraph id="H5AF9C62EBECF49F7B25227EC3B4CA2BE"><enum>(2)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H31F8F009FE5549D3B500C2CB008CA339" style="OLC"> <clause id="HA73E30987E24433587CA1F29409D67C7"><enum>(i)</enum><text>10 percent of the resources (in cash or in kind) raised by the company under section 354(d)(2); or</text> </clause><clause id="H7F6CC2FE3AD54207857CFE87E4114591"><enum>(ii)</enum><text>$1,000,000.</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="H9388804F54E34F2BBF69397737F21765"><enum>210.</enum><header>Authorization of appropriations and dedication to small manufacturing</header><text display-inline="no-display-inline">Section 368(a) of the Small Business Investment Act of 1958 (<external-xref legal-doc="usc" parsable-cite="usc/15/689q">15 U.S.C. 689q(a)</external-xref>) is amended—</text> <paragraph id="H69C1D12AF65244349E7FCE8EF2A00C1"><enum>(1)</enum><text>by striking <quote>fiscal years 2001 through 2006</quote> and inserting <quote>fiscal years 2008 through 2010</quote>;</text> </paragraph><paragraph id="H0D838F0EDC9946EC95F9AB8DA3A5E089"><enum>(2)</enum><text>in paragraph (1)—</text> <subparagraph id="HC7D276CC977B4719ABCDE8F08E1D5567"><enum>(A)</enum><text>by striking <quote>$150,000,000</quote> and inserting <quote>$30,000,000</quote>; and</text> </subparagraph><subparagraph id="HF73A62B9F13A4C6E00BC8F470063DFC3"><enum>(B)</enum><text>by inserting before the period at the end the following: <quote>, of which not less than one-quarter shall be used to guarantee debentures of companies engaged primarily in development of and investment in small manufacturers</quote>; and</text> </subparagraph></paragraph><paragraph id="H39C69695B8FF47399749B52FF7D66C"><enum>(3)</enum><text>in paragraph (2)—</text> <subparagraph commented="no" id="HF48915793B914CBCAB0557B520C0C121"><enum>(A)</enum><text>by striking <quote>$30,000,000</quote> and inserting <quote>$5,000,000</quote>; and</text> </subparagraph><subparagraph id="H49283389A1E7422ABE1CF4E793EEAD44"><enum>(B)</enum><text display-inline="yes-display-inline">by inserting before the period at the end the following: <quote>, of which not less than one-quarter shall be used to make grants to companies engaged primarily in development of and investment in small manufacturers</quote>.</text> </subparagraph></paragraph></section><enum>III</enum><header>Angel Investment Program</header> <section id="HDEE626415C454E8EB88791E8DBD42F92"><enum>301.</enum><header>Establishment of Angel Investment Program</header> <subsection id="HB11B25CC252745039FCD997900F64775"><enum>(a)</enum><header>Establishment</header><text>Title III of the Small Business Investment Act of 1958 (15 U.S.C. 681 et seq.) is amended by adding at the end the following new part:</text> <quoted-block display-inline="no-display-inline" id="H1623CAE382A2417D82F9F22EA6C8DC29" style="OLC"> <part id="H59AC0280AFF840AC967E169F56D87732"><enum>C</enum><header>Angel Investment Program</header> <section id="H5D378A2DEBC04C37992435F5F9B2BC64"><enum>380.</enum><header>Office of Angel Investment</header> <subsection id="HFB052F6575004D68AFCEE10014692500"><enum>(a)</enum><header>Establishment</header><text>There is established, in the Investment Division of the Small Business Administration, the Office of Angel Investment.</text> </subsection><subsection id="H5F8CB11EC2AD4DD2BD58AB5300D1E560"><enum>(b)</enum><header>Director</header><text>The head of the Office of Angel Investment is the Director of Angel Investment.</text> </subsection><subsection id="H8009BA36815A441F9F897786F0633AD"><enum>(c)</enum><header>Duties</header><text>Subject to the direction of the Secretary, the Director shall perform the following functions:</text> <paragraph id="H33009C7FFE814E95ABF6A41E571C8480"><enum>(1)</enum><text>Provide support for the development of angel investment opportunities for small business concerns.</text> </paragraph><paragraph id="HF5B5FA19EA8446758D9959EDCF812E87"><enum>(2)</enum><text>Administer the Angel Investment Program under section 382 of this Act.</text> </paragraph><paragraph id="HDC8B48A1E52E4441AE39F5F9663D4527"><enum>(3)</enum><text>Administer the Federal Angel Network under section 383 of this Act.</text> </paragraph><paragraph id="H884D0D55A6D84E9DB5BD39C6C81D85EF"><enum>(4)</enum><text>Administer the grant program for the development of angel groups under section 384 of this Act.</text> </paragraph><paragraph id="H7C7B900DC517402FA137793D94020785"><enum>(5)</enum><text display-inline="yes-display-inline">Perform such other duties consistent with this section as the Administrator shall prescribe.</text> </paragraph></subsection></section><section id="H4A7FA9C09B084768B0A44CD3B33B872F"><enum>381.</enum><header>Definitions</header><text display-inline="no-display-inline">In this part:</text> <paragraph id="H828F0498FDAA4F8B0008BC00BB96B43D"><enum>(1)</enum><text>The term <quote>angel group</quote> means 10 or more angel investors organized for the purpose of making investments in local or regional small business concerns that—</text> <subparagraph id="H662A874C88C04F7C96D9D1A3AC65FEE"><enum>(A)</enum><text>consists primarily of angel investors;</text> </subparagraph><subparagraph id="H29EA7A10F3EF4AF398402CEAF555CB07"><enum>(B)</enum><text>requires angel investors to be accredited investors; and</text> </subparagraph><subparagraph id="H5527A6E4362444AFA9DCF634C1D63389"><enum>(C)</enum><text>actively involves the angel investors in evaluating and making decisions about making investments.</text> </subparagraph></paragraph><paragraph id="H4EE2DD29BCF14825BEE3CAFCB52E3EC5"><enum>(2)</enum><text>The term <quote>angel investor</quote> means an individual who—</text> <subparagraph id="H3BD6CC18FB96482C90D0E771E69893B4"><enum>(A)</enum><text>qualifies as an accredited investor (as that term is defined under Rule 501 of Regulation D of the Securities and Exchange Commission (17 CFR 230.501));</text> </subparagraph><subparagraph id="H2D814804F3B547448C494CAD82DB4001"><enum>(B)</enum><text>provides capital to or makes investments in a small business concern.</text> </subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H8AD0CFEDD2564F68B6A93BF613C25632"><enum>(3)</enum><text>The term <quote>small business concern owned and controlled by veterans</quote> has the meaning given that term under section 3(q)(3) of the Small Business Act (15 U.S.C. 632(q)(3)).</text> </paragraph><paragraph id="H9DF7B781A33D4800A27165ADA943A128"><enum>(4)</enum><text>The term <quote>small business concern owned and controlled by women</quote> has the meaning given that term under section 8(d)(3)(D) of such Act (15 U.S.C. 637(d)(3)(D)).</text> </paragraph><paragraph id="H6D959433914744DBABBCDAD6BEFFC2B3"><enum>(5)</enum><text>The term <quote>socially and economically disadvantaged small business concern</quote> has the meaning given that term under section 8(a)(4)(A) of such Act (15 U.S.C. 637(a)(4)(A)).</text> </paragraph></section><section id="H401A48E7E56946CBA1E1AE002B00F743"><enum>382.</enum><header>Angel Investment Program</header> <subsection id="H8FF1220469A24D75AA62AFE7EEE8CC6F"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Director of Angel Investment shall establish and carry out a program, to be known as the Angel Investment Program, to provide financing to approved angel groups for the purpose of providing venture capital investment in small businesses in their communities.</text> </subsection><subsection id="H8D1070C0B1A041BA8C98B38819D01E4"><enum>(b)</enum><header>Eligibility</header><text>To be eligible to receive financing under this section, an angel group shall—</text> <paragraph id="HC866E853C5D342C400F7905DF99F7958"><enum>(1)</enum><text>have demonstrated experience making investments in local or regional small business concerns;</text> </paragraph><paragraph id="H1A5393575E6E445E89BEB783D39B441"><enum>(2)</enum><text>have established protocols and a due diligence process for determining its investment strategy;</text> </paragraph><paragraph id="HF7274DEF3F28450CA016177181AC9D99"><enum>(3)</enum><text>have an established code of ethics; and</text> </paragraph><paragraph id="H750177E6619A44A091C7228D6445D669"><enum>(4)</enum><text>submit an application to the Director of Angel Investment at such time and containing such information and assurances as the Director may require.</text> </paragraph></subsection><subsection id="H4D4E50ED2E0F4E5F92CE508BF696FFD"><enum>(c)</enum><header>Use of funds</header><text>An angel group that receives financing under this section shall use the amounts received to make investments in small business concerns—</text> <paragraph id="H593BAD034F5B46E6BC8BA632F2D69944"><enum>(1)</enum><text>that have been in existence for less than 5 years as of the date on which the investment is made;</text> </paragraph><paragraph id="H86FB3482CD6243CD90EAE94257EB10A8"><enum>(2)</enum><text display-inline="yes-display-inline">that have fewer than 75 employees as of the date on which the investment is made;</text> </paragraph><paragraph id="HE089BF8124B94C49AE9F8D636C4961D9"><enum>(3)</enum><text display-inline="yes-display-inline">more than 50 percent of the employees of which perform substantially all of their services in the United States as of the date on which the investment is made; and</text> </paragraph><paragraph id="H3E29F6BC919D4D7B9100964BC1F2FDBA"><enum>(4)</enum><text>within the geographic area determined by the Director under subsection (e).</text> </paragraph></subsection><subsection id="H8253F1454F4B4FF88C98EA5271CFF6B5"><enum>(d)</enum><header>Limitation on amount</header><text>No angel group receiving financing under this section shall receive more than $2,000,000.</text> </subsection><subsection id="H84C54EE7E7A34AAC8B8C7E874600E7D"><enum>(e)</enum><header>Limitation on geographic area</header><text>For each angel group receiving financing under this section, the Director shall determine the geographic area in which a small business concern must be located to receive an investment from that angel group.</text> </subsection><subsection id="H6798C63FE86747279BA55F745DBD8470"><enum>(f)</enum><header>Priority in providing financing</header><text display-inline="yes-display-inline">In providing financing under this section, the Director shall give priority to angel groups that invest in small business concerns owned and controlled by veterans, small business concerns owned and controlled by women, and socially and economically disadvantaged small business concerns.</text> </subsection><subsection id="H0C3765B61FBA4A0D851E4C01CB00E2F"><enum>(g)</enum><header>Nationwide distribution of financing</header><text>In providing financing under this section, the Director shall, to the extent practicable, provide financing to angel groups that are located in a variety of geographic areas.</text> </subsection><subsection id="HD79B1750D5A9460A8F8124D353227285"><enum>(h)</enum><header>Matching requirement</header><text>As a condition of receiving financing under this section, the Director shall require that for each small business concern in which the angel group receiving such financing invests, the angel group shall invest an amount that is equal to or greater than the amount of financing received under this section from a source other than the Federal Government that is equal to the amount of the financing provided under this section that the angel group invests in that small business concern.</text> </subsection><subsection id="HC38D8C1EEB404AFF9E1C747FD2006B21"><enum>(i)</enum><header>Repayment of financing</header><text display-inline="yes-display-inline">As a condition of receiving financing under this section, the Director shall require an angel group to repay the Director for any investment on which the angel group makes a profit an amount equal to the percentage of the returns that is equal to the percentage of the total amount invested by the angel group that consisted of financing received under this section.</text> </subsection><subsection id="H048D3FA8B9EA485E93C0AE6644802D6F"><enum>(j)</enum><header>Angel Investment Fund</header> <paragraph id="H51D34809CF94493BAF1EADB673C300B6"><enum>(1)</enum><header>Establishment</header><text>There is in the Treasury a fund to be known as the Angel Investment Fund.</text> </paragraph><paragraph id="H11C5E88A1218414E978DB786A400EECD"><enum>(2)</enum><header>Deposit of certain amounts</header><text>Amounts collected under subsection (i) shall be deposited in the fund.</text> </paragraph><paragraph id="H228830E979624A4696005258CEE10041"><enum>(3)</enum><header>Use of deposits</header><text display-inline="yes-display-inline">Deposits in the fund shall be available for the purpose of providing financing under this section in the amounts specified in annual appropriation laws without regard to fiscal year limitations.</text> </paragraph></subsection><subsection id="HA009A4DF763041FBA400F957C312DEC9"><enum>(k)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated to carry out this section—</text> <paragraph id="H70040CD062724794A88FCDCF7850E611"><enum>(1)</enum><text display-inline="yes-display-inline">$10,000,000 for fiscal year 2008;</text> </paragraph><paragraph id="H542F7154B5B14F1C9D004899BF1209FD"><enum>(2)</enum><text>$20,000,000 for fiscal year 2009; and</text> </paragraph><paragraph id="H6E718E890A2949DD837C2E9BA4B562F7"><enum>(3)</enum><text>$20,000,000 for fiscal year 2010.</text> </paragraph></subsection></section><section id="H36F099D1BFC747F39982343499A000E8"><enum>383.</enum><header>Federal Angel Network</header> <subsection id="HE20328BF57AE475084BBA76C44392C"><enum>(a)</enum><header>In general</header><text>Subject to the succeeding provisions of this subsection, the Director of the Office of Angel Investment shall establish and maintain a searchable database, to be known as the Federal Angel Network, to assist small business concerns in identifying angel investors.</text> </subsection><subsection id="HF9FC853240F14EA889F5816EF5725260"><enum>(b)</enum><header>Network contents</header><text>The Federal Angel Network shall include—</text> <paragraph id="HC2A48441D9684F22859C8282D243359"><enum>(1)</enum><text>a list of the names and addresses of angel groups and angel investors;</text> </paragraph><paragraph id="HD7D3420FE8024B4BB7CC19FD22E10098"><enum>(2)</enum><text>information about the types of investments each angel group or angel investor has made; and</text> </paragraph><paragraph id="HBCECAF5405BB4C60B8468DEFF59FAC3D"><enum>(3)</enum><text>information about other public and private resources and registries that provide information about angel groups or angel investors.</text> </paragraph></subsection><subsection id="H40DF12454BAB439E99EDBE1041CBD17"><enum>(c)</enum><header>Collection of information</header> <paragraph id="H82E0B638538043FFAA231EBD98FF2D73"><enum>(1)</enum><header>In general</header><text>The Director shall collect the information to be contained in the Federal Angel Network and shall ensure that such information is updated regularly.</text> </paragraph><paragraph id="H96A62CFDDB774197B52ED4ED1F33C72D"><enum>(2)</enum><header>Request for exclusion of information</header><text>The Director shall not include such information concerning an angel investor if that investor contacts the Director to request that such information be excluded from the Network.</text> </paragraph></subsection><subsection id="H6DC60DE5CD72469F8662BAA9ADCE976C"><enum>(d)</enum><header>Availability</header><text>The Director shall make the Federal Angel Network available on the Internet website of the Administration and shall do so in a manner that permits others to download, distribute, and use the information contained in the Federal Angel Network.</text> </subsection><subsection id="HD66CBDA5053642E3B6A5615600E4696E"><enum>(e)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated to carry out this section $1,000,000, to remain available until expended.</text> </subsection></section><section id="H2B26B389A15544D0A4ACCBE33CA5449C"><enum>384.</enum><header>Grant program for development of angel groups</header> <subsection id="H95FE2BE845A745E58305C8A8C6DBADF6"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Director of the Office of Angel Investment shall establish and carry out a grant program to make grants to eligible entities for the development of new or existing angel groups and to increase awareness and education about angel investing.</text> </subsection><subsection id="H753D48DCE4E14FBDB256E8EACF5628BE"><enum>(b)</enum><header>Eligible entities</header><text>In this section, the term <quote>eligible entity</quote> means—</text> <paragraph id="H063DA01B72D44A3E83A2A2A74277D6C0"><enum>(1)</enum><text>a State or unit of local government;</text> </paragraph><paragraph id="H28445F912A5D4083BFD324EB9B25AAD1"><enum>(2)</enum><text>a nonprofit organization;</text> </paragraph><paragraph id="H7734D054D95843D7BE37F345D2B110A9"><enum>(3)</enum><text>a state mutual benefit corporation;</text> </paragraph><paragraph id="H3FE6735749C846F386C8C900F0F7072B"><enum>(4)</enum><text>a Small Business Development Center established pursuant to section 21 of the Small Business Act (15 U.S.C. 648); or</text> </paragraph><paragraph id="H81140FE01D174E8DB68D6BD5EB368F2D"><enum>(5)</enum><text>a women’s business center established pursuant to section 29 of the Small Business Act (15 U.S.C. 656).</text> </paragraph></subsection><subsection id="HCD87522C41614F25856955BF44E06DA1"><enum>(c)</enum><header>Matching requirement</header><text display-inline="yes-display-inline">The Administrator shall require, as a condition of any grant made under this section, that the eligible entity receiving the grant provide from resources (in cash or in kind), other than those provided by the Administrator or any other Federal source, a matching contribution equal to 50 percent of the amount of the grant.</text> </subsection><subsection id="H61FF8FBB2728485E914368BD005E5B29"><enum>(d)</enum><header>Application</header><text>To receive a grant under this section, an eligible entity shall submit an application that contains—</text> <paragraph id="H7D4F70C11F9D4AE5A4BD3E23D1C2D04"><enum>(1)</enum><text>a proposal describing how the grant would be used; and</text> </paragraph><paragraph id="H003A4D1E87A64E0AA90807EAEDC42700"><enum>(2)</enum><text>any other information or assurances as the Director may require.</text> </paragraph></subsection><subsection id="H784C450B093F4FEABDC9E79B68390698"><enum>(e)</enum><header>Report</header><text>Not later than 3 years after the date on which an eligible entity receives a grant under this section, such eligible entity shall submit a report to the Administrator describing the use of grant funds and evaluating the success of the angel group developed using the grant funds.</text> </subsection><subsection id="HB04129282E344E7BAFF1BEAD5E70298"><enum>(f)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated to carry out this section $1,500,000, for each of fiscal years 2008 through 2010.</text> </subsection></section></part><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><enum>IV</enum><header>Surety Bond Program</header> <section id="H3CC54C461C044A82AA87A000A7B954F0"><enum>401.</enum><header>Study and report</header> <subsection id="HE02E3995E5264F8EB6D2EF65A2EB8D92"><enum>(a)</enum><header>Study</header><text display-inline="yes-display-inline">The Administrator of the Small Business Administration shall conduct a study of the current funding structure of the surety bond program carried out under part B (<external-xref legal-doc="usc" parsable-cite="usc/15/694a">15 U.S.C. 694a et seq.</external-xref>) of title IV of the Small Business Investment Act of 1958. The study shall include—</text> <paragraph id="HB64F4A7594B84BD9A9593FF44DD70066"><enum>(1)</enum><text>an assessment of whether the program’s current funding framework and program fees are inhibiting the program’s growth;</text> </paragraph><paragraph id="HAA6F5D24A0F54189A7CBA4CF8F88B880"><enum>(2)</enum><text>an assessment of whether surety companies and small business concerns could benefit from an alternative funding structure; and</text> </paragraph><paragraph id="H5F59DFA2F8FE4D93A4EF8CF1B2D6465"><enum>(3)</enum><text>an assessment of whether permissible premium rates for surety companies participating in the program should be placed on parity with the rates authorized by appropriate State insurance regulators and how such a change would affect the program under the current funding framework.</text> </paragraph></subsection><subsection id="HE722E97B99A04002B778591C79E195B1"><enum>(b)</enum><header>Report</header><text>Not later than 180 days after the date of the enactment of this Act, the Administrator shall submit to Congress a report on the results of the study.</text> </subsection></section><section id="H72CB0170157C4F64BA442657D35CC385"><enum>402.</enum><header>Preferred Surety Bond Program</header> <subsection id="H76BACD7B68EB460A96D5AB7F836600C4"><enum>(a)</enum><header>Program required</header><text>Part B (<external-xref legal-doc="usc" parsable-cite="usc/15/694a">15 U.S.C. 694a et seq.</external-xref>) of title IV of the Small Business Investment Act of 1958 is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H542ED10A17A24DB5BF3CBCF1BDDDE779" style="OLC"> <section id="H9B231BBDBDAF4DA584C0558B9E1D63C3"><enum>413.</enum><header>Preferred Surety Bond Program</header> <subsection id="HE780A9D9E56D411685ABC7B44F6F7218"><enum>(a)</enum><header>Program required</header><text>The Administrator shall carry out a program, to be known as the Preferred Surety Bond Program, under which the Administration, by a written agreement between the surety and the Administration, delegates to the surety complete authority to issue, monitor, and service bonds subject to guaranty from the Administration without obtaining the specific approval of the Administration. Bonds made under the program shall carry a 70 percent guaranty.</text> </subsection><subsection id="H715627D53C4D4710B190ECA2F363E5CE"><enum>(b)</enum><header>Term</header><text>The term of a delegation of authority under such an agreement shall not exceed 2 years.</text> </subsection><subsection id="H3071DE7B395147A387157803B5A1B864"><enum>(c)</enum><header>Renewal</header><text>Such an agreement may be renewed one or more times, each such renewal providing one additional term. Before each renewal, the Administrator shall review the surety’s bonds, policies, and procedures for compliance with relevant rules and regulations.</text> </subsection><subsection id="H12A9B60456794E3BA92160EC62A49466"><enum>(d)</enum><header>Application</header><text>The Administrator shall promptly act upon an application from a surety to participate in the program, in accordance with criteria and procedures established in regulations pursuant to section 411(d).</text> </subsection><subsection id="H371C556DFCDE400C8551005B30F181B4"><enum>(e)</enum><header>Reduction or termination of participation</header><text>The Administrator is authorized to reduce the allotment of bond guarantee authority or terminate the participation of a surety in the program based on the rate of participation of such surety during the 4 most recent fiscal year quarters compared to the median rate of participation by the other sureties in the program.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H49059CD448DD4848A7F03078C7245BF"><enum>(b)</enum><header>Conforming amendments</header><text>Section 411 of the Small Business Investment Act of 1958 (15 U.S.C. 694b) is amended—</text> <paragraph id="H7E991EBB58724B469C9514FD24C0CF0"><enum>(1)</enum><text>in subsection (a), by striking paragraphs (3), (4), and (5);</text> </paragraph><paragraph id="H9E8A1591CF024224A2F43831EB7E6936"><enum>(2)</enum><text>in subsection (b)(2), by striking <quote>the authority of subsection (a)(3)</quote> and inserting <quote>the authority of section 413</quote>;</text> </paragraph><paragraph id="HFD27C60D46D54BB28EA8B7CC744600A"><enum>(3)</enum><text>in subsection (c)—</text> <subparagraph id="HE17B2CB3FD554294B2A6D9EA006BB36"><enum>(A)</enum><text>by striking paragraph (1); and</text> </subparagraph><subparagraph id="H06A67E0E76EB4E11B85C34E5119C4F42"><enum>(B)</enum><text>by redesignating paragraphs (2) through (4) as (1) through (3), respectively; and</text> </subparagraph></paragraph><paragraph id="H6E2E761303824958AD8B8CC4EF913DAB"><enum>(4)</enum><text>in subsection (g)(3), by striking <quote>the authority of paragraph (3) of subsection (a)</quote> and inserting <quote>the authority of section 413</quote>.</text> </paragraph></subsection></section><section id="H73238041425E429C9F35D410BF7FF101"><enum>403.</enum><header>Denial of liability</header><text display-inline="no-display-inline">Section 411 of the Small Business Investment Act of 1958 (<external-xref legal-doc="usc" parsable-cite="usc/15/694b">15 U.S.C. 694b</external-xref>) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H7F5608268EFF491787742CD09015F7C" style="OLC"> <subsection id="H45994BF147114467ABA77F88BC4D8BB"><enum>(k)</enum><text>For bonds made or executed with the prior approval of the Administration, the Administration shall not deny liability to a surety based upon information that was provided as part of the guaranty application.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="HC1FC41C09E6F4E3FA1F63B5BD17F426C"><enum>404.</enum><header>Increasing the bond threshold</header><text display-inline="no-display-inline">Section 411(a) of the Small Business Investment Act of 1958 (<external-xref legal-doc="usc" parsable-cite="usc/15/694b">15 U.S.C. 694b(a)</external-xref>) is amended by striking <quote>$2,000,000</quote> and inserting <quote>$3,000,000</quote>.</text> </section><section id="HBD393CD79D05444BA33D4CED00AE0072"><enum>405.</enum><header>Fees</header><text display-inline="no-display-inline">Section 411 of the Small Business Investment Act of 1958 (15 U.S.C. 694b) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H8F64212CD2A042DF9867A808B631F100" style="OLC"> <subsection id="H6CD268D6759B484F969C8F8140F1AD26"><enum>(l)</enum><text display-inline="yes-display-inline">To the extent that amounts are made available to the Administrator for the purpose of fee contributions, the Administrator shall use such funds to offset fees established and assessed under this section. Each fee contribution shall be effective for one fiscal quarter and shall be adjusted as necessary to ensure that amounts made available are fully used.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><enum>V</enum><header>Venture Capital Investment Standards</header> <section id="H70B36344887049B1A329C7072263C42C"><enum>501.</enum><header>Determining whether business concern is independently owned and operated</header><text display-inline="no-display-inline">Section 3(a) of the Small Business Act (15 U.S.C. 632(a)) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H06EC5A3166C94D8EA73B4E0003B4A406" style="OLC"> <paragraph id="H9332C41D966548339975C959E0D300BA"><enum>(5)</enum><header>Non-affiliation of venture capital from consideration of small business concern</header><text display-inline="yes-display-inline">For purposes of determining whether a small business concern is independently owned and operated under paragraph (1) or meets the small business size standards instituted under paragraph (2), the Administrator shall not consider a business concern to be affiliated with a venture capital operating company (or with any other business that the venture capital operating company has financed) if—</text> <subparagraph id="H55113F39FC414F4A88D304225102E8AA"><enum>(A)</enum><text>the venture capital operating company does not own 50 percent or more of the business concern; and</text> </subparagraph><subparagraph id="H16B1D73CAF754C2CA6A917895EB38984"><enum>(B)</enum><text>employees of the venture capital operating company do not constitute a majority of the board of directors of the business concern.</text> </subparagraph></paragraph><paragraph id="H862FB14A94E846B09E5724CF6917F24B"><enum>(6)</enum><header>Definition of <quote>independently owned and operated</quote></header><text display-inline="yes-display-inline">For purposes of this section, a business concern shall be deemed to be <quote>independently owned and operated</quote> if—</text> <subparagraph id="H1004E6B29CDA4C199264A9009ECA600"><enum>(A)</enum><text>it is owned in majority part by one or more natural persons or venture capital operating companies;</text> </subparagraph><subparagraph id="HC24B877060104EB4A28C00BCEE945967"><enum>(B)</enum><text>there is no single venture capital operating company that owns 50 percent or more of the business concern; and</text> </subparagraph><subparagraph id="H2BC21B42F14543E3863D606DB3AB9CFD"><enum>(C)</enum><text>there is no single venture capital operating company the employees of which constitute a majority of the board of directors of the business concern.</text> </subparagraph></paragraph><paragraph id="H19584ECD8A1146478D5F05D23EC3FC4F"><enum>(7)</enum><header>Definition of <quote>venture capital operating company</quote></header><text>For purposes of this section, the term <quote>venture capital operating company</quote> means a business concern—</text> <subparagraph id="HC4E9A84C3C25478BA6282094EBEED8"><enum>(A)</enum><text>that—</text> <clause id="HC9B814B007E748DC8EF506C480F62E60"><enum>(i)</enum><text>is a Venture Capital Operating Company, as that term is defined in regulations promulgated by the Secretary of Labor; or</text> </clause><clause id="H13BC5E6B722E4FA2B2412593DB794FFD"><enum>(ii)</enum><text>is an entity that—</text> <subclause id="HC346F36819D346EBAD3159861B941FA"><enum>(I)</enum><text>is registered under the Investment Company Act of 1940 (<external-xref legal-doc="usc" parsable-cite="usc/15/80a-51">15 U.S.C. 80a–51 et seq.</external-xref>);</text> </subclause><subclause id="HCD0FD614B7094F93B6DDB5C8C45945F"><enum>(II)</enum><text>is an investment company, as defined in section 3(c)(14) of such Act (15 U.S.C. 80a–3(c)(14)), which is not registered under such Act because it is beneficially owned by less than 100 persons; or</text> </subclause><subclause id="H25912A8F64384468AB327BBA7F68ACCB"><enum>(III)</enum><text display-inline="yes-display-inline">is a nonprofit organization affiliated with, or serving as a patent and licensing organization for, a university or other institution of higher education and that invests primarily in small business concerns; and</text> </subclause></clause></subparagraph><subparagraph id="HDFD588A28C0E42DA994D20C65961C882"><enum>(B)</enum><text>that is not controlled by any business concern that is not a small business concern within the meaning of section 3; and</text> </subparagraph><subparagraph id="H68C053D7D3154B85B62C3E68F1B6E96"><enum>(C)</enum><text>that has fewer than 500 employees; and</text> </subparagraph><subparagraph id="H3B69A62903C14912A6FED329BAF61810"><enum>(D)</enum><text>that is itself a concern incorporated and domiciled in the United States, or is controlled by a concern that is incorporated and domiciled in the United States.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><enum>VI</enum><header>Regulations</header> <section id="H0AA7C583A79F449AA66D8E2EBC077D26"><enum>601.</enum><header>Regulations</header><text display-inline="no-display-inline">Not later than 90 days after the date of the enactment of this Act, the Administrator shall issue revisions to all existing regulations as necessary to ensure their conformity with the amendments made by this Act.</text> </section> Passed the House of Representatives September 27, 2007. Lorraine C. Miller, Clerk.