II Calendar No. 422 110th CONGRESS 1st Session S. 1662 [Report No. 110–199] 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 October 16, 2007 Reported by Mr. Kerry, with an amendment Strike out all after the enacting clause and insert the part printed in italic A BILL To amend the Small Business Investment Act of 1958 to reauthorize the venture capital program, and for other purposes.

1.

Short title

This Act may be cited as the Small Business Venture Capital Act of 2007.

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. .

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).

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. .

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.

1.

Short title

This Act may be cited as the Small Business Venture Capital Act of 2007.

2.

Definitions

In this Act— (1)the terms Administration and Administrator mean the Small Business Administration and the Administrator thereof, respectively; (2)the term low-income geographic area has the meaning given that term in section 351 of the Small Business Investment Act of 1958 (15 U.S.C. 689), as amended by this Act; (3)the term New Markets Venture Capital company has the meaning given that term in section 351 of the Small Business Investment Act of 1958 (15 U.S.C. 689); and (4)the term New Markets Venture Capital Program means the program under part B of title III of the Small Business Investment Act of 1958 (15 U.S.C. 689 et seq.).

3.

Table of contents

The table of contents for this Act is as follows: Sec. 1. Short title. Sec. 2. Definitions. Sec. 3. Table of contents. TITLE I—Small business investment company program Sec. 101. Reauthorization. Sec. 102. Leverage. Sec. 103. Investments in small er enterprises. Sec. 104. Private capital. Sec. 105. Maximum investment in a company. TITLE II—New Markets Venture Capital Program Sec. 201. Diversification of New Markets Venture Capital Program. Sec. 202. Establishment of Office of New Markets Venture Capital. Sec. 203. Low-income geographic areas. Sec. 204. Applications for New Markets Venture Capital Program. Sec. 205. Operational assistance grants. Sec. 206. Authorization.

October 16, 2007 Reported with an amendment