<enum>I</enum><header>New Markets Venture Capital Program</header> <section commented="no" id="HAADB05D785C146EFBDA50CBC069635BA"><enum>101.</enum><header>Expansion of New Markets Venture Capital Program</header> <subsection id="H8B79966AF0A943A88202CF3E3F5B2723"><enum>(a)</enum><header>Administration participation required</header><text display-inline="yes-display-inline">Section 353 of the Small Business Investment Act of 1958 (15 U.S.C. 689b) is amended by striking <quote>under which the Administrator may</quote> and inserting <quote>under which the Administrator shall</quote>.</text> </subsection><subsection id="H48AD00D7673F4208BBC749E5051C3D6F"><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="H6C33EA30B990470AB3573F45004AED93"><enum>102.</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="H28A2936A237A4AACB0DD8A59DA0D43F4" style="OLC"> <subsection id="H4E803D734C0C4F2CAAEB737A24DE0573"><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="H5842C29240D24B4AAD143A894FDAE600"><enum>103.</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 (15 U.S.C. 689c(d)(1)) is amended—</text> <paragraph id="H86C2FE3E0E144F89810321B0D9E5D972"><enum>(1)</enum><text>by striking <quote>Each</quote> and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="H81FAE9FCA8BC44839363B270DA3A6561" style="OLC"> <subparagraph id="HD734A1DBF2F044FB87CC72AB52589E6A"><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="H65DCD7DE549B4BD893E07C05D7117705"><enum>(2)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="HF9549D8D4CBE48C1A4A49A3FC7A3A64B" style="OLC"> <subparagraph id="H1CD4D825AD2F4035BB0D023CC56503DE"><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="H3B21423B99334EFC99427D73EA3AA063"><enum>104.</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="H79ACA55CE3FB4FB89CB6F2247F83647E"><enum>(1)</enum><text>by striking paragraphs (2) and (3);</text> </paragraph><paragraph id="H53B4F8FCFC574E58AE2BD34DC6D4FA9A"><enum>(2)</enum><text>by inserting after paragraph (1) the following:</text> <quoted-block display-inline="no-display-inline" id="H09BEEBC0A37540B7A26A71B5DCD6BE51" style="OLC"> <paragraph id="H47FD7A0C083449BEBA27849D9598643B"><enum>(2)</enum><header>Low-income geographic area</header><text>The term <term>low-income geographic area</term> has the same meaning given the term <term>low-income community</term> 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="H7CC6770B98EE4A82BA3A5D1F9FE453E1"><enum>(3)</enum><text>by redesignating paragraphs (4) through (8) as paragraphs (3) through (7), respectively.</text> </paragraph></section><section id="H56000C81EC9A4F018D149396CD964BA9"><enum>105.</enum><header>Study on availability of equity capital</header> <subsection id="HEDFE5886BE794624AD35D1430D911810"><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="H018CAC3AED8E4F5EBFB59D7A11BB7E3C"><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="HF477E68C21194BE385EDF4415365E464"><enum>106.</enum><header>Expanding operational assistance to conditionally approved companies</header> <subsection id="H65B9A053D7A54FBF89009B03AC224E09"><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 (15 U.S.C. 689g(a)) is amended by adding at the end the following:</text> <quoted-block id="H25388AFF4EB7480FA08F638D081BB8DE" style="OLC"> <paragraph id="H59433FFA72F143EBAC0DAED44A9C11A9"><enum>(6)</enum><header>Grants to conditionally approved companies</header> <subparagraph id="H5B2A1AACAEF042C98C033B736683EFF8"><enum>(A)</enum><header>In general</header><text>Subject to subparagraphs (B), (C), and (D), 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="H9C7DC7DCDDD44ADFABDBFD973F8D6142"><enum>(B)</enum><header>Repayment by companies not approved</header><text>If a company receives a grant under this paragraph 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="H8CE9D323F506462BAE7A79BE738918EF"><enum>(C)</enum><header>Deduction from grant to approved company</header><text>If a company receives a grant under this paragraph and receives final approval under section 354(e), the Administrator shall deduct the amount of the grant under this paragraph from the total grant amount that the company receives for operational assistance.</text> </subparagraph><subparagraph id="HA189A68457B548AC9801D879CFCF9134"><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="HA004114AFC7D4A92A8513D700A95CF40"><enum>(b)</enum><header>Limitation on time for final approval</header><text>Section 354(d) of the Small Business Investment Act of 1958 (15 U.S.C. 689c(d)) 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="HCB98B1481FB1487EBF26C2C7D1243447"><enum>(c)</enum><header>Expanded definition of operational assistance</header><text display-inline="yes-display-inline">Section 351(4) of the Small Business Investment Act of 1958, as so redesignated by section 104 of this Act, 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="H82E174DA926544A1B8889722AE755320"><enum>107.</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 Act, the Administrator of the Small Business Administration shall prescribe standard documents for the final New Markets Venture Capital company approval application under section 354(e) of the Small Business Investment Act of 1958 (15 U.S.C. 689c(e)). 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="H09FCA6269EFE4152A44231F936392DEB"><enum>108.</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="HE100C6B92FF74D0489A6BB07A27AECB1"><enum>(1)</enum><text>in subclause (I) by adding <quote>and</quote> at the end;</text> </paragraph><paragraph id="H50EECE8EA22241D091A373591B3E9FAD"><enum>(2)</enum><text>in subclause (II) by striking <quote>and</quote> at the end; and</text> </paragraph><paragraph id="H455D9FA71C044EF3AF8B68C38F8C8BA4"><enum>(3)</enum><text>by striking subclause (III).</text> </paragraph></section><section id="H33439F3574D24624B6E93ECD9D9C5657"><enum>109.</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 (15 U.S.C. 689g(a)(4)(A)) is amended—</text> <paragraph id="H2EA7D9D559AE46D18F798B97CA1831C0"><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="H7B8FB1FBDA9F4276AD68BA0FF12AC592"><enum>(2)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="HC2091BA4DB434398BD405A894ED0F685" style="OLC"> <clause id="HAFFF7E51DBBA4714A778590F38C65005"><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="H82E5CA0C4D4A4CE78D9F7EE588B5EB73"><enum>(ii)</enum><text>$1,000,000.</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="HF367F4168CCF4C1EACE3D672DDDECF0D"><enum>110.</enum><header>Authorization of appropriations</header><text display-inline="no-display-inline">Section 368(a) of the Small Business Investment Act of 1958 (15 U.S.C. 689q(a)) is amended by striking <quote>fiscal years 2001 through 2006</quote> and inserting <quote>fiscal years 2010 through 2012</quote>.</text> </section>

Short title; table of contents

(a)

Short title

This Act may be cited as the

American Small Business Innovation Act

. (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. Expansion of New Markets Venture Capital Program.

Sec. 102. Improved nationwide distribution.

Sec. 103. Increased investment in small manufacturers.

Sec. 104. Updating definition of low-income geographic area.

Sec. 105. Study on availability of equity capital.

Sec. 106. Expanding operational assistance to conditionally approved companies.

Sec. 107. Streamlined application for New Markets Venture Capital Program.

Sec. 108. Elimination of matching requirement.

Sec. 109. Simplified formula for operational assistance grants.

Sec. 110. Authorization of appropriations.

Title II—Angel Investment Program

Sec. 201. Establishment of Angel Investment Program.

<enum>I</enum><header>New Markets Venture Capital Program</header> <section commented="no" id="HAADB05D785C146EFBDA50CBC069635BA"><enum>101.</enum><header>Expansion of New Markets Venture Capital Program</header> <subsection id="H8B79966AF0A943A88202CF3E3F5B2723"><enum>(a)</enum><header>Administration participation required</header><text display-inline="yes-display-inline">Section 353 of the Small Business Investment Act of 1958 (15 U.S.C. 689b) is amended by striking <quote>under which the Administrator may</quote> and inserting <quote>under which the Administrator shall</quote>.</text> </subsection><subsection id="H48AD00D7673F4208BBC749E5051C3D6F"><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="H6C33EA30B990470AB3573F45004AED93"><enum>102.</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="H28A2936A237A4AACB0DD8A59DA0D43F4" style="OLC"> <subsection id="H4E803D734C0C4F2CAAEB737A24DE0573"><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="H5842C29240D24B4AAD143A894FDAE600"><enum>103.</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 (15 U.S.C. 689c(d)(1)) is amended—</text> <paragraph id="H86C2FE3E0E144F89810321B0D9E5D972"><enum>(1)</enum><text>by striking <quote>Each</quote> and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="H81FAE9FCA8BC44839363B270DA3A6561" style="OLC"> <subparagraph id="HD734A1DBF2F044FB87CC72AB52589E6A"><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="H65DCD7DE549B4BD893E07C05D7117705"><enum>(2)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="HF9549D8D4CBE48C1A4A49A3FC7A3A64B" style="OLC"> <subparagraph id="H1CD4D825AD2F4035BB0D023CC56503DE"><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="H3B21423B99334EFC99427D73EA3AA063"><enum>104.</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="H79ACA55CE3FB4FB89CB6F2247F83647E"><enum>(1)</enum><text>by striking paragraphs (2) and (3);</text> </paragraph><paragraph id="H53B4F8FCFC574E58AE2BD34DC6D4FA9A"><enum>(2)</enum><text>by inserting after paragraph (1) the following:</text> <quoted-block display-inline="no-display-inline" id="H09BEEBC0A37540B7A26A71B5DCD6BE51" style="OLC"> <paragraph id="H47FD7A0C083449BEBA27849D9598643B"><enum>(2)</enum><header>Low-income geographic area</header><text>The term <term>low-income geographic area</term> has the same meaning given the term <term>low-income community</term> 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="H7CC6770B98EE4A82BA3A5D1F9FE453E1"><enum>(3)</enum><text>by redesignating paragraphs (4) through (8) as paragraphs (3) through (7), respectively.</text> </paragraph></section><section id="H56000C81EC9A4F018D149396CD964BA9"><enum>105.</enum><header>Study on availability of equity capital</header> <subsection id="HEDFE5886BE794624AD35D1430D911810"><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="H018CAC3AED8E4F5EBFB59D7A11BB7E3C"><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="HF477E68C21194BE385EDF4415365E464"><enum>106.</enum><header>Expanding operational assistance to conditionally approved companies</header> <subsection id="H65B9A053D7A54FBF89009B03AC224E09"><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 (15 U.S.C. 689g(a)) is amended by adding at the end the following:</text> <quoted-block id="H25388AFF4EB7480FA08F638D081BB8DE" style="OLC"> <paragraph id="H59433FFA72F143EBAC0DAED44A9C11A9"><enum>(6)</enum><header>Grants to conditionally approved companies</header> <subparagraph id="H5B2A1AACAEF042C98C033B736683EFF8"><enum>(A)</enum><header>In general</header><text>Subject to subparagraphs (B), (C), and (D), 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="H9C7DC7DCDDD44ADFABDBFD973F8D6142"><enum>(B)</enum><header>Repayment by companies not approved</header><text>If a company receives a grant under this paragraph 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="H8CE9D323F506462BAE7A79BE738918EF"><enum>(C)</enum><header>Deduction from grant to approved company</header><text>If a company receives a grant under this paragraph and receives final approval under section 354(e), the Administrator shall deduct the amount of the grant under this paragraph from the total grant amount that the company receives for operational assistance.</text> </subparagraph><subparagraph id="HA189A68457B548AC9801D879CFCF9134"><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="HA004114AFC7D4A92A8513D700A95CF40"><enum>(b)</enum><header>Limitation on time for final approval</header><text>Section 354(d) of the Small Business Investment Act of 1958 (15 U.S.C. 689c(d)) 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="HCB98B1481FB1487EBF26C2C7D1243447"><enum>(c)</enum><header>Expanded definition of operational assistance</header><text display-inline="yes-display-inline">Section 351(4) of the Small Business Investment Act of 1958, as so redesignated by section 104 of this Act, 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="H82E174DA926544A1B8889722AE755320"><enum>107.</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 Act, the Administrator of the Small Business Administration shall prescribe standard documents for the final New Markets Venture Capital company approval application under section 354(e) of the Small Business Investment Act of 1958 (15 U.S.C. 689c(e)). 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="H09FCA6269EFE4152A44231F936392DEB"><enum>108.</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="HE100C6B92FF74D0489A6BB07A27AECB1"><enum>(1)</enum><text>in subclause (I) by adding <quote>and</quote> at the end;</text> </paragraph><paragraph id="H50EECE8EA22241D091A373591B3E9FAD"><enum>(2)</enum><text>in subclause (II) by striking <quote>and</quote> at the end; and</text> </paragraph><paragraph id="H455D9FA71C044EF3AF8B68C38F8C8BA4"><enum>(3)</enum><text>by striking subclause (III).</text> </paragraph></section><section id="H33439F3574D24624B6E93ECD9D9C5657"><enum>109.</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 (15 U.S.C. 689g(a)(4)(A)) is amended—</text> <paragraph id="H2EA7D9D559AE46D18F798B97CA1831C0"><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="H7B8FB1FBDA9F4276AD68BA0FF12AC592"><enum>(2)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="HC2091BA4DB434398BD405A894ED0F685" style="OLC"> <clause id="HAFFF7E51DBBA4714A778590F38C65005"><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="H82E5CA0C4D4A4CE78D9F7EE588B5EB73"><enum>(ii)</enum><text>$1,000,000.</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="HF367F4168CCF4C1EACE3D672DDDECF0D"><enum>110.</enum><header>Authorization of appropriations</header><text display-inline="no-display-inline">Section 368(a) of the Small Business Investment Act of 1958 (15 U.S.C. 689q(a)) is amended by striking <quote>fiscal years 2001 through 2006</quote> and inserting <quote>fiscal years 2010 through 2012</quote>.</text> </section><enum>II</enum><header>Angel Investment Program</header> <section id="H29ABA70B8A77470BBE4B9C1452E727A2"><enum>201.</enum><header>Establishment of Angel Investment Program</header><text display-inline="no-display-inline">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:</text> <quoted-block display-inline="no-display-inline" id="HCF4754643A3F471BB6E75B9566749C80" style="OLC"> <part id="H5FB0E4EE0A0A48C2ACDDF27B6021FD7E"><enum>D</enum><header>Angel Investment Program</header> <section id="H34D020AC130A46239939BC476D8A03D0"><enum>399A.</enum><header>Office of Angel Investment</header> <subsection id="HE98C12BEA05148029CBBF8FC8E9E79E3"><enum>(a)</enum><header>Establishment</header><text>There is established, in the Small Business Investment Division of the Small Business Administration, the Office of Angel Investment.</text> </subsection><subsection id="H3F6719FBC401422A808FEB8FD84F463A"><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="HF571854607DF4249B8628D702790F6F2"><enum>(c)</enum><header>Duties</header><text>Subject to the direction of the Administrator, the Director shall perform the following functions:</text> <paragraph id="H7BF0E4DBA4B84CB0BE22077A361FBAFD"><enum>(1)</enum><text>Provide support for the development of angel investment opportunities for small business concerns.</text> </paragraph><paragraph id="H2FD9C3BC35EB456F8E83511D8391181B"><enum>(2)</enum><text>Administer the Angel Investment Program under section 399C.</text> </paragraph><paragraph id="HE0D9AA24DBB34F34BFE33F96EC2AB147"><enum>(3)</enum><text>Administer the Federal Angel Network under section 399D.</text> </paragraph><paragraph id="HA8EA726AD7E74EE68D7B3B40385E06C4"><enum>(4)</enum><text>Administer the grant program for the development of angel groups under section 399E.</text> </paragraph><paragraph id="H1C2268C15FB9494F97A65CB8AECFFAE7"><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="H1BD9AD62B127451CAC67A933B52F68F7"><enum>399B.</enum><header>Definitions</header><text display-inline="no-display-inline">In this part:</text> <paragraph id="HF231D2202B01475EBDF34809097053D9"><enum>(1)</enum><text>The term <term>angel group</term> means a group including 10 or more angel investors organized for the purpose of making investments in local or regional small business concerns that—</text> <subparagraph id="H3335056707D94722A6E640E8852714AA"><enum>(A)</enum><text>consists primarily of angel investors;</text> </subparagraph><subparagraph id="H281A5B169FDE43138F9989ED368A7D41"><enum>(B)</enum><text>requires angel investors to be accredited investors; and</text> </subparagraph><subparagraph id="H22DD01C046224E08AFE26D1EE5D019BD"><enum>(C)</enum><text>actively involves the angel investors in evaluating and making decisions about making investments.</text> </subparagraph></paragraph><paragraph id="HBBCF7253A4474B8FA04680C15068AD94"><enum>(2)</enum><text>The term <term>angel investor</term> means an individual who—</text> <subparagraph id="HEEF1EAC823614A92823209F44B3C8EF0"><enum>(A)</enum><text>qualifies as an accredited investor (as that term is defined under section 230.501 of title 17, Code of Federal Regulations); and</text> </subparagraph><subparagraph id="H2BA97DFFA98C47D2AB8D5960B666EAAE"><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="H488385DEE3DC4DB88FF33A3B141E9A2C"><enum>(3)</enum><text>The term <term>small business concern owned and controlled by veterans</term> 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="H127A8B2F54494B34B3D45C75154A9C73"><enum>(4)</enum><text>The term <term>small business concern owned and controlled by women</term> has the meaning given that term under section 8(d)(3)(D) of the Small Business Act (15 U.S.C. 637(d)(3)(D)).</text> </paragraph><paragraph id="HCEFB394FBA0B45789D719B69E0FD83F1"><enum>(5)</enum><text>The term <term>socially and economically disadvantaged small business concern</term> has the meaning given that term under section 8(a)(4)(A) of the Small Business Act (15 U.S.C. 637(a)(4)(A)).</text> </paragraph></section><section id="HE33C5E316B8C4C638288ECDBB0A36B4D"><enum>399C.</enum><header>Angel Investment Program</header> <subsection id="H8135DD1BAA7A4B96A01B4C08B2F5A897"><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 business concerns in the communities of such groups.</text> </subsection><subsection id="HA32B42241C514DFFB2BB3D47C8FACDBC"><enum>(b)</enum><header>Eligibility</header><text>To be eligible to receive financing under this section, an angel group shall—</text> <paragraph id="HACE41F0EBE32481EA3B3CDEB4331BADA"><enum>(1)</enum><text>have demonstrated experience making investments in local or regional small business concerns;</text> </paragraph><paragraph id="HB40F3C41406042729A8DA0CD70399658"><enum>(2)</enum><text>have established protocols and a due diligence process for determining its investment strategy;</text> </paragraph><paragraph id="H7DDB56D1C75948FFB902CF7308A94445"><enum>(3)</enum><text>have an established code of ethics; and</text> </paragraph><paragraph id="H35694DA5A5A54B1EAD06D46030D9AE87"><enum>(4)</enum><text>submit an application to the Director at such time and containing such information and assurances as the Director may require.</text> </paragraph></subsection><subsection id="H4060806774BF424F9BD17D1F1B37E151"><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="HCB5A0DAFCD6C49019CF3AB85D601960A"><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="H24B41AE4F1CA4CDDA0A2FDDC53CC97D6"><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="HB2D0A7112B204E7AAD3615FD0F22E003"><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="H977984E23AC54707BAF1D7DBAF776A66"><enum>(4)</enum><text>within the geographic area determined by the Director under subsection (e).</text> </paragraph></subsection><subsection id="H5A80E4F49AD2413E9403B1D1D01F6B31"><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="HDABA52F29CDE4E7C8CCFF0CEBFD3552B"><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="H7F7C3CF2ACBD4D3DA7F7BE86F70A4455"><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="HCDEC92300DF54E7F8831634C60969EFC"><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="HCDBD9E99B5B945FFAE4EA48D260DFE02"><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 from a source other than the Federal Government that is equal to or greater than the amount of the financing provided under this section that the angel group invests in that small business concern.</text> </subsection><subsection id="HBE72EDAA89D845DEA2025303950998A1"><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="HD1DE9421401D468290A18D1D325757FF"><enum>(j)</enum><header>Angel Investment Fund</header> <paragraph id="HFC36B5C2F2B44654BBF220C8E3DBAAE1"><enum>(1)</enum><header>Establishment</header><text>There is established in the Treasury a fund to be known as the Angel Investment Fund.</text> </paragraph><paragraph id="HD844995AEBB64F1FA1FE25D96BE9FB78"><enum>(2)</enum><header>Deposit of certain amounts</header><text>Amounts collected under subsection (i) shall be deposited in such fund.</text> </paragraph><paragraph id="HC6982BB773D949688FD3E40378F2EC91"><enum>(3)</enum><header>Use of deposits</header><text display-inline="yes-display-inline">Deposits in such fund shall be available for the purpose of providing financing under this section in the amounts specified in annual appropriations Acts without regard to fiscal year limitations.</text> </paragraph></subsection><subsection id="HB92B4EDFFA904FCEB0E80998960BC3CD"><enum>(k)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated to carry out this section—</text> <paragraph id="H7A41D5B3678840C3953B5C91C91B0ABF"><enum>(1)</enum><text display-inline="yes-display-inline">$10,000,000 for fiscal year 2010;</text> </paragraph><paragraph id="HDA287525892E4BD9B1EED65B7497C49A"><enum>(2)</enum><text>$20,000,000 for fiscal year 2011; and</text> </paragraph><paragraph id="HF305A15E4786490D830BCC39B92F0894"><enum>(3)</enum><text>$20,000,000 for fiscal year 2012.</text> </paragraph></subsection></section><section id="H5D29B2E1A160446B85B28E489A40ECD4"><enum>399D.</enum><header>Federal Angel Network</header> <subsection id="H4B803ABCDF664DA2A1F9E7B41F896BF4"><enum>(a)</enum><header>In general</header><text>Subject to the succeeding provisions of this section, the Director 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="H8D1A73855B3645FCA6E336F3E17B1843"><enum>(b)</enum><header>Network contents</header><text>The Federal Angel Network shall include—</text> <paragraph id="H2E43637413C04CCA8DC7D7A2276767BF"><enum>(1)</enum><text>a list of the names and addresses of angel groups and angel investors;</text> </paragraph><paragraph id="HB5C62AEF36694816A33A9A22134FC82D"><enum>(2)</enum><text>information about the types of investments each angel group or angel investor has made; and</text> </paragraph><paragraph id="H606F8E31B2C3487FBFA771EB28083758"><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="H4E95E9D359ED42D1BBBCB28D33E2B107"><enum>(c)</enum><header>Collection of information</header> <paragraph id="H3C0627FAAE6C4858B969E1442E35E141"><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="HD57733C641D94597AFD7963F7D8DB8BD"><enum>(2)</enum><header>Request for exclusion of information</header><text>The Director shall not include 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="HBCAB150124404D8A878A62EA12A73D3B"><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="H46896B1D7DAB4460A2C217B0E51E518F"><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="H271DE34D6A404DC4982EB5CEF60192C2"><enum>399E.</enum><header>Grant program for development of angel groups</header> <subsection id="H78F468BFC7474211A2FE460B2C16DA0F"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Director 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="HAC05931CF39A42468E23709D5BA3A5FA"><enum>(b)</enum><header>Eligible entities</header><text>In this section, the term <term>eligible entity</term> means—</text> <paragraph id="H35C4E70C456C4A85B7035043FB79DF0A"><enum>(1)</enum><text>a State or unit of local government;</text> </paragraph><paragraph id="H6D50728C95D7480CB6461DFF3C72965A"><enum>(2)</enum><text>a nonprofit organization;</text> </paragraph><paragraph id="H919D7D7508534211B15DC119DF07A2F1"><enum>(3)</enum><text>a State mutual benefit corporation;</text> </paragraph><paragraph id="H386C2A5F001B496DA828DB62E861078B"><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="H1BDC97B22FD14518B7BE198A4FC43E5A"><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="H8246F648E60747D9BFC63F93A8C2B38C"><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="HD93E4C8163F24C608EB3B992FC27EA36"><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="H669EFBCCE9B046EF9CD5B94B8A5971EE"><enum>(1)</enum><text>a proposal describing how the grant would be used; and</text> </paragraph><paragraph id="H58D8F179F5E243CBADC25EA2A2B5E693"><enum>(2)</enum><text>any other information or assurances as the Director may require.</text> </paragraph></subsection><subsection id="HC0B6F6A9847D4D018250FC0206012BAA"><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="HE6CE15B585104AA6A27922BBBA6EE1EB"><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 2010 through 2012.</text> </subsection></section></part><after-quoted-block>.</after-quoted-block></quoted-block> </section>