[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 2521 Engrossed in Senate (ES)]
<DOC>
117th CONGRESS
2d Session
S. 2521
_______________________________________________________________________
AN ACT
To require the Administrator of the Small Business Administration to
establish an SBIC Advisory Committee, 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 ``SBIC Advisory Committee Act of
2022''.
SEC. 2. SBIC ADVISORY COMMITTEE.
(a) Definitions.--In this section--
(1) the terms ``Administration'' and ``Administrator'' mean
the Small Business Administration and the Administrator
thereof, respectively;
(2) the term ``covered Members'' means the Chair and
Ranking Member of--
(A) the Committee on Small Business and
Entrepreneurship of the Senate; and
(B) the Committee on Small Business of the House of
Representatives;
(3) the terms ``licensee'', ``small business investment
company'', and ``underlicensed State'' have the meanings given
those terms in section 301 of the Small Business Investment Act
of 1958 (15 U.S.C. 662);
(4) the term ``low-income community'' has the meaning given
the term in section 45D(e) of the Internal Revenue Code of
1986;
(5) the term ``rural area'' has the meaning given the term
by the Bureau of the Census;
(6) the terms ``small business concern'', ``small business
concern owned and controlled by veterans'', and ``small
business concern owned and controlled by women'' have the
meanings given those terms in section 3 of the Small Business
Act (15 U.S.C. 632);
(7) the term ``socially or economically disadvantaged
individual'' means a socially disadvantaged individual or
economically disadvantaged individual, as described in
paragraphs (5) and (6)(A), respectively, of section 8(a) of the
Small Business Act (15 U.S.C. 637(a));
(8) the term ``underfinanced State'' means a State that has
below median financing, as determined by the Administrator; and
(9) the term ``underserved community'' means--
(A) a HUBZone, as defined in section 31(b) of the
Small Business Act (15 U.S.C. 657a(b));
(B) a community that has been designated as an
empowerment zone or an enterprise community under
section 1391 of the Internal Revenue Code of 1986;
(C) a community that has been designated as a
promise zone by the Secretary of Housing and Urban
Development; and
(D) a community that has been designated as a
qualified opportunity zone under section 1400Z-1 of the
Internal Revenue Code of 1986.
(b) Establishment.--The Administrator shall establish an SBIC
Advisory Committee (referred to in this section as the ``Advisory
Committee'') to convene outside experts to advise on the small business
investment program under title III of the Small Business Investment Act
of 1958 (15 U.S.C. 681 et seq.).
(c) Composition.--
(1) Membership.--The Advisory Committee shall be composed
of 16 members appointed by the Administrator as follows:
(A) The Associate Administrator of the Office of
Investment and Innovation of the Small Business
Administration, or another designee of the
Administrator as determined by the Administrator.
(B) 7 members with competence, interest, or
knowledge of the small business investment program
under title III of the Small Business Investment Act of
1958 (15 U.S.C. 681 et seq.), of whom--
(i) not fewer than 3 shall have a
demonstrated record of expertise in investing
in--
(I) low-income communities;
(II) communities that have been
designated as qualified opportunity
zones under section 1400Z-1 of the
Internal Revenue Code of 1986;
(III) businesses primarily engaged
in research and development;
(IV) manufacturers;
(V) businesses primarily owned or
controlled by individuals in
underserved communities before
receiving capital from the licensee;
(VI) rural areas; or
(VII) underfinanced States; and
(ii) not fewer than 1 member shall be a
representative from a trade association for the
small business investment program under title
III of the Small Business Investment Act of
1958 (15 U.S.C. 681 et seq.).
(C) 8 members appointed by the Administrator as
follows:
(i) 2 members shall be selected from among
the individuals in the list submitted by the
Chair of the Committee on Small Business and
Entrepreneurship of the Senate under paragraph
(2).
(ii) 2 members shall be selected from among
the individuals in the list submitted by the
Ranking Member of the Committee on Small
Business and Entrepreneurship of the Senate
under paragraph (2).
(iii) 2 members shall be selected from
among the individuals in the list submitted by
the Chair of the Committee on Small Business of
the House of Representatives under paragraph
(2).
(iv) 2 members shall be selected from among
the individuals in the list submitted by the
Ranking Member of the Committee on Small
Business of the House of Representatives under
paragraph (2).
(2) Recommendations.--Not later than 30 days after the date
of enactment of this Act, each of the covered Members shall
provide to the Administrator a list of 3 candidates for
membership on the Advisory Committee, who shall be individuals
who hold a high-ranking position or senior leadership role, and
have no conflict of interest in the small business investment
program under title III of the Small Business Investment Act of
1958 (15 U.S.C. 681 et seq.), in--
(A) a relevant industry trade association;
(B) the investment industry with expertise in
pensions, endowments, and other non-banking
institutions;
(C) academia with expertise in the investment
industry; or
(D) a nonprofit institution, including one that
serves any of the entities described in subclauses (I)
through (VII) of paragraph (1)(B)(i).
(3) Private sector members.--Not fewer than 2 and not more
than 4 of the members of the Advisory Committee shall be
investors in the private sector who--
(A) invest in small business concerns; and
(B) as of the date of appointment, do not
participate in the small business investment program
under title III of the Small Business Investment Act of
1958 (15 U.S.C. 681 et seq.).
(4) Chairperson.--The Chairperson of the Advisory Committee
shall be the member of the Advisory Committee appointed under
paragraph (1)(A).
(5) Period of appointment.--Members of the Advisory
Committee shall be appointed for the life of the Advisory
Committee.
(6) Vacancies.--Any vacancy in the Advisory Committee shall
be filled in the same manner as the original appointment.
(d) Deadline for Appointment.--Not later than 60 days after the
date on which the covered Members provide the lists to the
Administrator under subsection (c)(2), the Administrator shall--
(1) appoint the members of the Advisory Committee; and
(2) submit to Congress a list of the members so appointed.
(e) Duties.--The Advisory Committee shall provide advice and
recommendations to the Administrator--
(1) concerning policy and program development and other
matters of significance concerning activities under the Small
Business Act (15 U.S.C. 631 et seq.) and the Small Business
Investment Act of 1958 (15 U.S.C. 661 et seq.), including
diversifying management teams or companies;
(2) concerning incentives for small business investment
companies to--
(A) invest and locate in underlicensed States and
underfinanced States; and
(B) invest in small business concerns, including
those owned and controlled by socially or economically
disadvantaged individuals, small business concerns
owned and controlled by veterans, and small business
concerns owned and controlled by women;
(3) concerning metrics of success, and benchmarks for
success, with respect to the goals described in this section;
and
(4) concerning the impact of the small business investment
program under title III of the Small Business Investment Act of
1958 (15 U.S.C. 681 et seq.) on the private investment market,
including whether investments under the program compete with
the private sector.
(f) Report.--Not later than 18 months after the date on which the
Administrator establishes the Advisory Committee under subsection (b),
the Advisory Committee shall submit to the Administrator, the Committee
on Small Business and Entrepreneurship of the Senate, and the Committee
on Small Business of the House of Representatives a report that
includes the recommendations of the Advisory Committee described in
subsection (e).
(g) Termination.--The Advisory Committee shall terminate on the
date on which the Advisory Committee submits the report required under
subsection (f).
Passed the Senate September 28, 2022.
Attest:
Secretary.
117th CONGRESS
2d Session
S. 2521
_______________________________________________________________________
AN ACT
To require the Administrator of the Small Business Administration to
establish an SBIC Advisory Committee, and for other purposes.