[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3722 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 3722

 To amend the Small Business Investment Act of 1958 to improve the New 
Markets Venture Capital and Renewable Fuel Capital Investment Programs, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 6, 2009

 Mrs. Kirkpatrick of Arizona introduced the following bill; which was 
              referred to the Committee on Small Business

_______________________________________________________________________

                                 A BILL


 
 To amend the Small Business Investment Act of 1958 to improve the New 
Markets Venture Capital and Renewable Fuel Capital Investment Programs, 
                        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 ``Enhanced New Markets and Expanded 
Investment in Renewable Energy for Small Manufacturers Act of 2009''.

         TITLE I--ENHANCED NEW MARKETS VENTURE CAPITAL PROGRAM

SEC. 101. EXPANSION OF NEW MARKETS VENTURE CAPITAL PROGRAM.

    (a) Administration Participation Required.--Section 353 of the 
Small Business Investment Act of 1958 (15 U.S.C. 689b) is amended by 
striking ``under which the Administrator may'' and inserting ``under 
which the Administrator shall''.
    (b) Report to Congress.--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 describing any 
expansion of the New Markets Venture Capital Program as a result of 
this section.

SEC. 102. IMPROVED NATIONWIDE DISTRIBUTION.

    Section 354 of the Small Business Investment Act of 1958 (15 U.S.C. 
689c) is amended by adding at the end the following:
    ``(f) Geographic Expansion.--From among companies submitting 
applications under subsection (b), the Administrator shall consider the 
selection criteria and promotion of nationwide distribution under 
subsection (c) and shall, to the extent practicable, approve at least 
one company from each geographic region of the Small Business 
Administration.''.

SEC. 103. INCREASED INVESTMENT IN SMALL BUSINESS CONCERNS ENGAGED 
              PRIMARILY IN MANUFACTURING.

    (a) Developmental Venture Capital and Participation Agreements.--
Section 351 of the Small Business Investment Act of 1958 (15 U.S.C. 
689) is amended--
            (1) in paragraph (1) by inserting after ``geographic 
        areas'' the following: ``or encouraging the growth or 
        continuation of small business concerns located in low-income 
        geographic areas and engaged primarily in manufacturing''; and
            (2) in paragraph (6)(B) by inserting after ``geographic 
        areas'' the following: ``or in small business concerns located 
        in low-income geographic areas at least 80 percent of which are 
        engaged primarily in manufacturing''.
    (b) Purposes.--Section 352(2) of the Small Business Investment Act 
of 1958 (15 U.S.C. 689a(2)) is amended--
            (1) in the matter preceding subparagraph (A) by inserting 
        after ``geographic areas'' the following: ``and small business 
        concerns located in low-income geographic areas and engaged 
        primarily in manufacturing'';
            (2) in subparagraph (B) by inserting after ``geographic 
        areas'' the following: ``or in small business concerns located 
        in low-income geographic areas and engaged primarily in 
        manufacturing''; and
            (3) in subparagraph (C) by inserting after ``smaller 
        enterprises'' the following: ``and small business concerns''.
    (c) Eligibility, Applications, and Requirements for Final 
Approval.--Section 354 of the Small Business Investment Act of 1958 (15 
U.S.C. 689c), as amended by this Act, is further amended--
            (1) in subsection (a)(3) by inserting after ``geographic 
        areas'' the following: ``or investing in small business 
        concerns located in low-income geographic areas and engaged 
        primarily in manufacturing'';
            (2) in subsection (b)--
                    (A) in paragraph (1) by inserting after 
                ``geographic areas'' the following: ``or in small 
                business concerns located in low-income geographic 
                areas and engaged primarily in manufacturing''; and
                    (B) in paragraph (4) by inserting after ``smaller 
                enterprises'' the following: ``or small business 
                concerns''; and
            (3) in subsection (d)--
                    (A) in paragraph (1)--
                            (i) by striking ``Each'' and inserting the 
                        following:
                    ``(A) In general.--Except as provided in 
                subparagraph (B), each''; and
                            (ii) by adding at the end the following:
                    ``(B) Small business concerns engaged primarily in 
                manufacturing.--Each conditionally approved company 
                engaged primarily in development of and investment in 
                small business concerns located in low-income 
                geographic areas and engaged primarily in manufacturing 
                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 met criteria established by the 
                Administrator.''; and
                    (B) in paragraph (2)(A) by inserting after 
                ``smaller enterprises'' the following: ``or small 
                business concerns''.
    (d) Operational Assistance Grants.--Section 358 of the Small 
Business Investment Act of 1958 (15 U.S.C. 689g) is amended--
            (1) in subsection (a)(1) by inserting after ``smaller 
        enterprises'' the following: ``and small business concerns''; 
        and
            (2) in subsection (b)(1) by inserting after ``smaller 
        enterprises'' the following: ``and small business concerns''.

SEC. 104. EXPANDED USES FOR OPERATIONAL ASSISTANCE IN MANUFACTURING.

    Section 351 of the Small Business Investment Act of 1958 (15 U.S.C. 
689), as amended by this Act, is further amended in paragraph (5) by 
inserting after ``business development'' the following: ``or assistance 
that assists a small business concern located in a low-income 
geographic area and engaged primarily in manufacturing with retooling, 
updating, or replacing machinery or equipment''.

SEC. 105. UPDATING DEFINITION OF LOW-INCOME GEOGRAPHIC AREA.

    Section 351 of the Small Business Investment Act of 1958 (15 U.S.C. 
689), as amended by this Act, is further amended--
            (1) by striking paragraphs (2) and (3);
            (2) by inserting after paragraph (1) the following:
            ``(2) Low-income geographic area.--The term `low-income 
        geographic area' has the meaning given the term `low-income 
        community' in section 45D(e) of the Internal Revenue Code of 
        1986.''; and
            (3) by redesignating paragraphs (4) through (8) as 
        paragraphs (3) through (7), respectively.

SEC. 106. EXPANDING OPERATIONAL ASSISTANCE TO CONDITIONALLY APPROVED 
              COMPANIES.

    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:
            ``(6) Grants to conditionally approved companies.--
                    ``(A) In general.--Subject to the provisions of 
                this paragraph, upon the request of a company 
                conditionally approved under section 354(c), the 
                Administrator shall make a grant to the company under 
                this subsection.
                    ``(B) Repayment by companies not approved.--If a 
                company receives a grant under this paragraph and does 
                not receive final approval under section 354(e), the 
                company shall repay the amount of the grant to the 
                Administrator.
                    ``(C) Deduction from grant to approved company.--If 
                a company receives a grant under this paragraph and 
                receives final approval under section 354(e), the 
                Administrator shall deduct the amount of such grant 
                from the amount of any immediately succeeding grant the 
                company receives for operational assistance.
                    ``(D) Amount of grant.--No company may receive a 
                grant of more than $50,000 under this paragraph.''.

SEC. 107. LIMITATION ON TIME FOR FINAL APPROVAL.

    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 ``a period of time, not to exceed 2 years,'' and inserting ``2 
years''.

SEC. 108. STREAMLINED APPLICATION FOR NEW MARKETS VENTURE CAPITAL 
              PROGRAM.

    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 a New Markets Venture Capital company final 
approval application under section 354(e) of the Small Business 
Investment Act of 1958 (15 U.S.C. 689c(e)). The Administrator shall 
ensure that the standard documents are designed to substantially reduce 
the cost burden of the application process for companies.

SEC. 109. ELIMINATION OF MATCHING REQUIREMENT.

    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--
            (1) in subclause (I) by adding ``and'' at the end;
            (2) in subclause (II) by striking ``and'' at the end; and
            (3) by striking subclause (III).

SEC. 110. SIMPLIFIED FORMULA FOR OPERATIONAL ASSISTANCE GRANTS.

    Section 358(a)(4)(A) of the Small Business Investment Act of 1958 
(15 U.S.C. 689g(a)(4)(A)) is amended--
            (1) by striking ``shall be equal to'' and all that follows 
        through the period at the end and inserting ``shall be equal to 
        the lesser of--''; and
            (2) by adding at the end the following:
                            ``(i) 10 percent of the resources (in cash 
                        or in-kind) raised by the company under section 
                        354(d)(2); or
                            ``(ii) $1,000,000.''.

SEC. 111. AUTHORIZATION OF APPROPRIATIONS AND ENHANCED ALLOCATION FOR 
              SMALL MANUFACTURING.

    Section 368(a) of the Small Business Investment Act of 1958 (15 
U.S.C. 689q(a)) is amended--
            (1) in the matter preceding paragraph (1) by striking 
        ``fiscal years 2001 through 2006'' and inserting ``fiscal years 
        2010 and 2011'';
            (2) in paragraph (1)--
                    (A) by striking ``$150,000,000'' and inserting 
                ``$100,000,000''; and
                    (B) by inserting before the period at the end the 
                following: ``, of which not less than 50 percent shall 
                be used to guarantee debentures of companies engaged 
                primarily in development of and investment in small 
                business concerns located in low-income geographic 
                areas and engaged primarily in manufacturing''; and
            (3) in paragraph (2)--
                    (A) by striking ``$30,000,000'' and inserting 
                ``$20,000,000''; and
                    (B) by inserting before the period at the end the 
                following: ``, of which not less than 50 percent shall 
                be used to make grants to companies engaged primarily 
                in development of and investment in small business 
                concerns located in low-income geographic areas and 
                engaged primarily in manufacturing''.

    TITLE II--EXPANDED INVESTMENT IN SMALL BUSINESS RENEWABLE ENERGY

SEC. 201. EXPANDED INVESTMENT IN RENEWABLE ENERGY.

    Part C of title III of the Small Business Investment Act of 1958 
(15 U.S.C. 690 et seq.) is amended--
            (1) in the heading by striking ``renewable fuel capital 
        investment'' and inserting ``renewable energy capital 
        investment'';
            (2) in the heading of paragraph (4) of section 381 by 
        striking ``Renewable fuel capital investment'' and inserting 
        ``Renewable energy capital investment'';
            (3) in the heading of section 384 by striking ``renewable 
        fuel capital investment'' and inserting ``renewable energy 
        capital investment''; and
            (4) by striking ``Renewable Fuel Capital Investment'' each 
        place it appears and inserting ``Renewable Energy Capital 
        Investment''.

SEC. 202. RENEWABLE ENERGY CAPITAL INVESTMENT PROGRAM MADE PERMANENT.

    Part C of title III of the Small Business Investment Act of 1958 
(15 U.S.C. 690 et seq.), as amended by this Act, is further amended--
            (1) in the heading by striking ``pilot''; and
            (2) by striking section 398.

SEC. 203. EXPANDED ELIGIBILITY FOR SMALL BUSINESSES.

    Part C of title III of the Small Business Investment Act of 1958 
(15 U.S.C. 690 et seq.), as amended by this Act, is further amended by 
striking ``smaller enterprises'' each place it appears and inserting 
``small business concerns''.

SEC. 204. EXPANDED USES FOR OPERATIONAL ASSISTANCE IN MANUFACTURING AND 
              SMALL BUSINESSES.

    Section 381(1) of the Small Business Investment Act of 1958 (15 
U.S.C. 690(1)) is amended by inserting after ``business development'' 
the following: ``, assistance that assists a small business concern to 
reduce energy consumption, or assistance that assists a small business 
concern engaged primarily in manufacturing with retooling, updating, or 
replacing machinery or equipment''.

SEC. 205. EXPANSION OF RENEWABLE ENERGY CAPITAL INVESTMENT PROGRAM.

    (a) Administration Participation Required.--Section 383 of the 
Small Business Investment Act of 1958 (15 U.S.C. 690b) is amended by 
striking ``under which the Administrator may'' and inserting ``under 
which the Administrator shall''.
    (b) Report to Congress.--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 describing any 
expansion of the Renewable Energy Capital Investment Program as a 
result of this section.

SEC. 206. SIMPLIFIED FEE STRUCTURE TO EXPEDITE IMPLEMENTATION.

    Section 387(a) of the Small Business Investment Act of 1958 (15 
U.S.C. 690f(a)) is amended by striking ``or grant''.

SEC. 207. INCREASED OPERATIONAL ASSISTANCE GRANTS.

    Section 397(a) of the Small Business Investment Act of 1958 (15 
U.S.C. 690p(a)) is amended by inserting after ``and 2009'' the 
following: ``and $30,000,000 in such grants for each of fiscal years 
2010 and 2011''.

SEC. 208. AUTHORIZATIONS OF APPROPRIATIONS.

    Section 397 of the Small Business Investment Act of 1958 (15 U.S.C. 
690p) is amended--
            (1) in the heading by inserting after ``appropriations'' 
        the following: ``and program levels''; and
            (2) by adding at the end the following:
    ``(c) Program Levels.--For the programs authorized by this part, 
the Administration is authorized to make $1,000,000,000 in guarantees 
of debentures for each of fiscal years 2010 and 2011.''.
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