I 112th CONGRESS 1st Session H. R. 3219 IN THE HOUSE OF REPRESENTATIVES October 14, 2011 Mr. Chabot introduced the following bill; which was referred to the Committee on Small Business A BILL To amend the Small Business Investment Act of 1958 with respect to small business investment companies, and for other purposes.

1.

Short title

This Act may be cited as the Small Business Investment Company Modernization Act of 2011.

2.

Maximum leverage

Section 303(b)(2) of the Small Business Investment Act of 1958 (15 U.S.C. (b)(2)) is amended by striking so much of paragraph (2) as precedes subparagraph (C) and inserting the following: (2)

Maximum leverage

(A)

In general

Except as provided in subparagraph (B), the maximum amount of outstanding leverage made available to any one company licensed under section 301(c) of this Act may not exceed the lesser of— (i)300 percent of such company’s private capital; or (ii)$150,000,000. (B)

Certain single companies

Beginning after the date of enactment of this subparagraph, if a majority of the managers of a company are experienced in managing one or more companies licensed under section 301(c) of this Act (as determined by the Administrator), the maximum amount of outstanding leverage made available to that company may not exceed the lesser of— (i)300 percent of such company’s private capital; or (ii)$200,000,000. (C)

Multiple licensees under common control

The maximum amount of out standing leverage made available to two or more companies licensed under section 301(c) of this Act that are commonly controlled (as determined by the Administrator) and not under capital impairment may not exceed $350,000,000, but the material capital impairment of one licensed company in a group under common control shall not reduce the maximum amounts of outstanding leverage that is made available to the other licensed companies in that group under common control. .