[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 1662 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                S. 1662

 To amend the Small Business Investment Act of 1958 to reauthorize the 
            venture capital program, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 19, 2007

 Mr. Kerry (for himself and Ms. Snowe) introduced the following bill; 
 which was read twice and referred to the Committee on Small Business 
                          and Entrepreneurship

_______________________________________________________________________

                                 A BILL


 
 To amend the Small Business Investment Act of 1958 to reauthorize the 
            venture capital program, 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 ``Small Business Venture Capital Act 
of 2007''.

SEC. 2. REAUTHORIZATION.

    Section 20 of the Small Business Act (15 U.S.C. 631 note) is 
amended by inserting after subsection (e) the following:
    ``(f) Small Business Venture Capital.--For the programs authorized 
under part A of title III of the Small Business Investment Act of 1958 
(15 U.S.C. 681 et seq.), the Administrator is authorized to make--
            ``(1) $500,000,000 in purchases of participating securities 
        for each of fiscal years 2007 through 2010; and
            ``(2)(A) $2,000,000,000 in guarantees of debentures for 
        fiscal year 2007;
            ``(B) $2,250,000,000 in guarantees of debentures for fiscal 
        year 2008;
            ``(C) $2,500,000,000 in guarantees of debentures for fiscal 
        year 2009; and
            ``(D) $2,775,000,000 in guarantees of debentures for fiscal 
        year 2010.''.

SEC. 3. LEVERAGE.

    (a) In General.--Section 303(b)(2) of the Small Business Investment 
Act of 1958 (15 U.S.C. 683(b)(2)) is amended to read as follows:
            ``(2) Maximum leverage.--
                    ``(A) In general.--The maximum amount of 
                outstanding leverage made available to any 1 company 
                licensed under section 301(c) may not exceed the lesser 
                of--
                            ``(i) 300 percent of private capital; or
                            ``(ii) $150,000,000.
                    ``(B) Multiple licenses under common control.--The 
                maximum amount of outstanding leverage made available 
                to 2 or more companies licensed under section 301(c) 
                that are commonly controlled (as determined by the 
                Administrator) may not exceed $225,000,000.
                    ``(C) Investments in women-owned and minority-owned 
                businesses and in low-income geographic areas.--
                            ``(i) In general.--The maximum amount of 
                        outstanding leverage made available to--
                                    ``(I) any 1 company described in 
                                clause (ii) may not exceed the lesser 
                                of--
                                            ``(aa) 300 percent of 
                                        private capital; or
                                            ``(bb) $175,000,000; and
                                    ``(II) 2 or more companies 
                                described in clause (ii) that are 
                                commonly controlled (as determined by 
                                the Administrator) may not exceed 
                                $250,000,000.
                            ``(ii) Applicability.--A company described 
                        in this clause is a company licensed under 
                        section 301(c) that certifies in writing that 
                        not less than 50 percent of the dollar amount 
                        of investments of that company shall be made in 
                        companies that, prior to that investment, are 
                        owned by women or minorities (as determined by 
                        the Administrator) or are located in a low-
                        income geographic area (as that term is defined 
                        in section 351).
                            ``(iii) Exception.--The Administrator may, 
                        on a case-by-case basis, impose such additional 
                        terms and conditions as the Administrator 
                        determines to be appropriate to minimize the 
                        risk of loss to the Administration in the event 
                        of a default.''.
    (b) Technical and Conforming Amendments.--Section 303(b) of the 
Small Business Investment Act of 1958 (15 U.S.C. 683(b)) is amended by 
striking paragraph (4).

SEC. 4. INVESTMENTS IN SMALLER ENTERPRISES.

    Section 303(d) of the Small Business Investment Act of 1958 (15 
U.S.C. 683(d)) is amended to read as follows:
    ``(d) Investments in Smaller Enterprises.--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 aggregate 
dollar amount of financings of that licensee shall be provided to 
smaller enterprises.''.

SEC. 5. PRIVATE CAPITAL.

    (a) In General.--Section 103(9)(A)(ii) of the Small Business 
Investment Act of 1958 (15 U.S.C. 662(9)(A)(ii)) is amended by 
inserting ``, for any company licensed under section 301(c) on or after 
October 1, 2004,'' before ``leverage shall not be funded based on such 
commitments''.
                                 <all>