1.This Act may be cited as the
Small Business Venture Capital Act of
2009
.
2.In this Act—
(1)the terms Administration and
Administrator mean the Small Business Administration and the
Administrator thereof, respectively;
(2)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
(3)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.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. Private capital.
Sec. 104. 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.
<enum>I</enum><header>Small business
investment company program</header>
<section id="id13d1b536-8aa2-4fa9-a153-1878efe78f35"><enum>101.</enum><header>Reauthorization</header><text display-inline="no-display-inline">Section 20 of the Small Business Act (15
U.S.C. 631 note) is amended—</text>
<paragraph id="id1D51A431669E4485A095FB5923C699FA"><enum>(1)</enum><text display-inline="yes-display-inline">by redesignating subsection (j) as
subsection (f); and</text>
</paragraph><paragraph id="idBC08A6479FA446D49139B6BC6B66E136"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id865a40c7-53c8-4066-8240-a224b83d9d82" style="OLC">
<subsection id="id71d795e7-a7c4-4cb8-ac17-f9c91dbe24e6"><enum>(g)</enum><header>Small
Business Venture Capital</header><text>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—</text>
<paragraph commented="no" id="idf9a5bb9b-3e53-4b40-acab-1bf5cb4076ba"><enum>(1)</enum><text>$500,000,000
in purchases of participating securities for each of fiscal years 2010 through
2013; and</text>
</paragraph><paragraph commented="no" id="id8a3935c2-47ed-4465-944c-2d8ee0debe70"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="id694bdd9a-0367-4108-83d1-34797a3253a9"><enum>(A)</enum><text>$2,000,000,000 in
guarantees of debentures for fiscal year 2010;</text>
</subparagraph><subparagraph commented="no" id="id8b15e6d2-cf72-4cfc-b517-02320f5a2912" indent="up1"><enum>(B)</enum><text>$2,250,000,000 in guarantees of
debentures for fiscal year 2011;</text>
</subparagraph><subparagraph commented="no" id="id2056e0ae-8f3f-4afe-af73-e0ac31742627" indent="up1"><enum>(C)</enum><text>$2,500,000,000 in guarantees of
debentures for fiscal year 2012; and</text>
</subparagraph><subparagraph commented="no" id="id0e4b6870-3c3a-49af-9b5b-0732d9e54e27" indent="up1"><enum>(D)</enum><text>$2,750,000,000 in guarantees of
debentures for fiscal year
2013.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section commented="no" id="idb58a980d-6880-4a29-b61f-c5c8d5ba16a6"><enum>102.</enum><header>Leverage</header><text display-inline="no-display-inline">Section 303(b)(2) of the Small Business
Investment Act of 1958 (15 U.S.C. 683(b)(2)) is amended by adding at the end
the following:</text>
<quoted-block display-inline="no-display-inline" id="id33852952-7e72-418d-8f64-6cf643cb1990" style="OLC">
<subparagraph id="idddfa82b3-3758-4543-bb22-cb8c37f55e60"><enum>(E)</enum><header>Investments
in small business concerns owned and controlled by women and socially and
economically disadvantaged small business concerns</header>
<clause id="id5df59850-3458-44a5-b62a-81e564c224a0"><enum>(i)</enum><header>In
general</header><text>The maximum amount of outstanding leverage made available
to—</text>
<subclause id="id8fc98a1f-c581-44d8-b16b-4d4a604d9f51"><enum>(I)</enum><text>any 1 small
business investment company described in clause (ii) may not exceed the lesser
of—</text>
<item id="id7b1feda8-01f1-4821-bc97-cf6d19bd8e62"><enum>(aa)</enum><text>300 percent
of private capital; or</text>
</item><item id="ide9c55dd3-dc3c-4469-a022-57cdd4e7920b"><enum>(bb)</enum><text>$175,000,000;
and</text>
</item></subclause><subclause id="id80e68a5f-7780-4f5a-b298-871303eeb846"><enum>(II)</enum><text>2 or more
small business investment companies described in clause (ii) that are commonly
controlled (as determined by the Administrator) may not exceed
$250,000,000.</text>
</subclause></clause><clause id="iddfce85cf-8838-4ec3-9408-878776d52f82"><enum>(ii)</enum><header>Applicability</header><text>A
small business investment company described in this clause is a small business
investment company that certifies in writing that not less than 50 percent of
the dollar amount of investments of the small business investment company are
or will be made in small business concerns owned and controlled by women, as
defined in section 3 of the Small Business Act (15 U.S.C. 632), or socially and
economically disadvantaged small business concerns, as defined in section
8(a)(4)(A) of the Small Business Act (15 U.S.C.
637(a)(4)(A)).</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="ida4b69afc-5406-4df0-a805-a793dfadaa1e"><enum>103.</enum><header>Private
capital</header><text display-inline="no-display-inline">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 <quote>, except for any company licensed under section
301(c) on or before September 30, 2004, that holds commitments from the
Administration for participating security leverage,</quote> before
<quote>leverage shall not be funded based on such commitments</quote>.</text>
</section><section commented="no" id="id90E2A0E305034F4A9153D9906E788634"><enum>104.</enum><header>Maximum
investment in a company</header><text display-inline="no-display-inline">Section 306(a) of the Small Business
Investment Act of 1958 (15 U.S.C. 686(a)) is amended by striking <quote>10
percent</quote> and inserting <quote>30 percent</quote>.</text>
</section><enum>II</enum><header>New
Markets Venture Capital Program</header>
<section commented="no" id="H781BFA61E7724450B4F378AD91DE7BC8"><enum>201.</enum><header>Diversification
of New Markets Venture Capital Program</header>
<subsection id="H82023748A5AE41A79000FD4F8EA3FFB1"><enum>(a)</enum><header>Selection of
companies in each geographic region</header><text display-inline="yes-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="H108F9F9E071A4F08A27B3DFBEFBF48AA" style="OLC">
<subsection id="H2BF1CC38072044D4A36F67DBA2E898F4"><enum>(f)</enum><header>Geographic
goal</header><text>In selecting companies to participate as New Markets Venture
Capital companies in the program established under this part, the Administrator
shall, to the maximum extent practicable, select at least 1 company from each
geographic region of the
Administration.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="H8C1E80C73AF14CCBB33800A91B616EBB"><enum>(b)</enum><header>Participation in
New Markets Venture Capital Program</header>
<paragraph id="H86DD3EE76AE542F8AAF2CEA4C33A8D8"><enum>(1)</enum><header>Administration
participation required</header><text>Section 353 of the Small Business
Investment Act of 1958 (15 U.S.C. 689b) is amended in the matter preceding
paragraph (1), by striking <quote>under which the Administrator may</quote> and
inserting <quote>under which the Administrator shall</quote>.</text>
</paragraph><paragraph commented="no" id="HB3CADAAC5E654934BF3C41D3E25E50CB"><enum>(2)</enum><header>Small
manufacturer participation</header><text>Section 353(1) of the Small Business
Investment Act of 1958 (15 U.S.C. 689b(1)) is amended by inserting <quote>, and
shall set a goal of entering into at least 1 such agreement each fiscal year
with a company that is engaged primarily in development of, and investment in,
small manufacturers, as that term is defined in section 501(e)(6)</quote> after
<quote>section 352</quote>.</text>
</paragraph></subsection></section><section id="H1493DFC62F1C4BBCB8CDA4538893E3A6"><enum>202.</enum><header>Establishment
of Office of New Markets Venture Capital</header><text display-inline="no-display-inline">Title II of the Small Business Investment
Act of 1958 (15 U.S.C. 671) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="H6C13057D3271480E8BFD4B41BD9546B" style="OLC">
<section id="H129B2542BB71478AAADC9E003D465F27"><enum>202.</enum><header>Office of New
Markets Venture Capital</header>
<subsection id="HDA3EB00D4EDD434FACBC132FC474ACBA"><enum>(a)</enum><header>Establishment</header><text display-inline="yes-display-inline">There is established in the Small Business
Investment Division of the Administration, the Office of New Markets Venture
Capital.</text>
</subsection><subsection id="HC233748466D24813B999CAA43E628D57"><enum>(b)</enum><header>Director</header><text>The
head of the Office of New Markets Venture Capital shall be an individual
appointed by the Administrator in the competitive service or the excepted
service.</text>
</subsection><subsection id="H26D2735B9A264DB299B00623FBE9468"><enum>(c)</enum><header>Responsibilities
of Director</header><text>The head of the Office of New Markets Venture Capital
shall—</text>
<paragraph id="H4C81FD89AC4A4FFCA3C0FB6069883CC3"><enum>(1)</enum><text>administer the New
Markets Venture Capital Program under part B of title III;</text>
</paragraph><paragraph id="H5A48BB68D2C04876907030F32C613645"><enum>(2)</enum><text>assess, not less
frequently than once every 2 years, the nature and scope of the New Markets
Venture Capital Program and advise the Administrator on recommended changes to
the program;</text>
</paragraph><paragraph id="H9B26CA0BEE8344F58E8F6CECEC6B7786"><enum>(3)</enum><text>make efforts to
expand the number of small-business concerns that participate in the New
Markets Venture Capital Program; and</text>
</paragraph><paragraph id="H0E9F74456A8247A6A6DF80259F1C03CB"><enum>(4)</enum><text>encourage
investment in small manufacturers, as that term is defined in section
501(e)(6).</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HF595AAEAD2224F3DB4D1B008716AFB3"><enum>203.</enum><header>Low-income
geographic areas</header>
<subsection id="HD9663DA8DFD94E34B4DEE9C2C0A8B8F9"><enum>(a)</enum><header>In
general</header><text>Section 351 of the Small Business Investment Act of 1958
(15 U.S.C. 689) is amended—</text>
<paragraph id="idEDA367EFFBC44E69A546019A4ECF200E"><enum>(1)</enum><text>by striking
paragraph (2);</text>
</paragraph><paragraph id="id3D6C31332A0B416F98A0AA96F86DF6A9"><enum>(2)</enum><text>by redesignating
paragraphs (3) through (8) as paragraphs (2) through (7), respectively;
and</text>
</paragraph><paragraph id="idC4650B82FBF54BEC9F9D0E9C2177AD3D"><enum>(3)</enum><text>in paragraph (2),
as so redesignated—</text>
<subparagraph id="id417B72FE736045D786D6A3FCE753CF96"><enum>(A)</enum><text>in the matter
preceding subparagraph (A)—</text>
<clause id="id7314B01146D74CE7A0B3E48B85DB68E8"><enum>(i)</enum><text>by
striking <term>the term</term> and inserting <term>The term</term>; and</text>
</clause><clause id="id9A194A97EB674FD3B40BF3F8CC760820"><enum>(ii)</enum><text>by
striking <term>means</term>;</text>
</clause></subparagraph><subparagraph id="idA0525547CADA4EDB978C8C5170CDEFCF"><enum>(B)</enum><text>by striking
subparagraph (A) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idA69BCA066ED741279A630D1B5662869F" style="OLC">
<subparagraph id="id715DA427A71E47E991DAD31D3D2F8508"><enum>(A)</enum><text>means a
<term>low-income community</term> within the meaning of section 45D(e) of the
Internal Revenue Code of 1986 (relating to the new markets tax credit);
and</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="id4FF35CCD2F5447EB9D8BF049262BC173"><enum>(C)</enum><text>in subparagraph
(B), in the matter preceding clause (i), by inserting <quote>includes</quote>
before <quote>any area</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="HF85761FA31094DFEA9AD1EE7B3F7CC72"><enum>(b)</enum><header>Application of
amended definition to capital requirement</header><text>The definition of the
term <term>low-income geographic area</term> under section 351 of the Small
Business Investment Act of 1958, as amended by subsection (a), shall apply to
capital raised by a New Markets Venture Capital company before, on, or after
the date of enactment of this Act.</text>
</subsection></section><section id="HB5E4233E3821432198B0F94838A14605"><enum>204.</enum><header>Applications
for New Markets Venture Capital Program</header><text display-inline="no-display-inline">Not later than 1 year after the date of
enactment of this Act, the Administrator shall prescribe standard documents for
an application by a New Markets Venture Capital company for final approval
under section 354(e) of the Small Business Investment Act of 1958 (15 U.S.C.
689c(e)). The Administrator shall ensure that such documents are designed to
substantially reduce the cost of the application process for a company making
such an application.</text>
</section><section id="id6AEE152269E44217AF8A29BB7FEDD4F8"><enum>205.</enum><header>Operational
assistance grants</header>
<subsection id="id721DCB6773FB4DA4B1CB99201FD4D908"><enum>(a)</enum><header>In
general</header><text display-inline="yes-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 to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id92B8E0A096F849A89989537E669ED8B2" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="ID9118EE7BE96745ADA175D9A4A15973BF"><enum>(A)</enum><header>New markets
venture capital companies</header><text display-inline="yes-display-inline">Notwithstanding section 354(d), the amount
of a grant made under this subsection to a New Markets Venture Capital company
shall be equal to the lesser of—</text>
<clause commented="no" display-inline="no-display-inline" id="idDF334BA00F6543588D5A2C7F8612E6BE"><enum>(i)</enum><text display-inline="yes-display-inline">10 percent of the private capital raised by
the company; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id8C88C42060624D43AE3D179C4722E03E"><enum>(ii)</enum><text display-inline="yes-display-inline">$1,000,000.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id214887C90D8446F18C4009EB55822F35"><enum>(b)</enum><header>Requirements To
be met for final approval</header><text>Section 354(d) of the Small Business
Investment Act of 1958 (15 U.S.C. 689c(d)) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="id6AAE7442A52F4182804CB6CFF2EBF8B6" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="IDAFEC0A63E98B4C5AB5399BDB96DF95C5"><enum>(d)</enum><header display-inline="yes-display-inline">Requirements To be met for final
approval</header><text display-inline="yes-display-inline">Not later than 2
years after the date on which a company is conditionally approved by the
Administrator under subsection (c)(1), the company shall raise not less than
$5,000,000 of private capital, or binding capital commitments, from 1 or more
investors that—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id147CEE369A024E67ADA2F538D001E18C"><enum>(1)</enum><text display-inline="yes-display-inline">are not agencies or departments of the
Federal Government; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idEF90F157429D48DF8F2751D3BE31D134"><enum>(2)</enum><text display-inline="yes-display-inline">meet criteria established by the
Administrator.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id73D5BD3C03BE4D5F9280A5BC26E6C021"><enum>(c)</enum><header>Technical and
conforming amendments</header><text>Section 358(a)(4) of the Small Business
Investment Act of 1958 (15 U.S.C. 689g(a)(4)) is amended by striking
<quote>section 354(d)(2)</quote> each place it appears and inserting
<quote>section 354(d)</quote>.</text>
</subsection></section><section id="H9D4ADED0E94E4AE090CE92ED6428C64"><enum>206.</enum><header>Authorization</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—</text>
<paragraph id="id75AD09FA627647988BD14D3AA039EA9F"><enum>(1)</enum><text display-inline="yes-display-inline">in the matter preceding paragraph (1), by
striking <quote>fiscal years 2001 through 2006</quote> and inserting
<quote>fiscal years 2010 through 2013</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA231B06AAEC541E59CDDD1D057B79A44"><enum>(2)</enum><text>in paragraph (2),
by striking <quote>$30,000,000</quote> and inserting
<quote>$20,000,000</quote>.</text>
</paragraph></section>