[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 2521 Reported in Senate (RS)]

<DOC>





                                                       Calendar No. 280
117th CONGRESS
  2d Session
                                S. 2521

 To require the Administrator of the Small Business Administration to 
        establish an SBIC Working Group, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 28, 2021

   Mr. Cardin (for himself, Mr. Risch, and Mr. Coons) introduced the 
 following bill; which was read twice and referred to the Committee on 
                  Small Business and Entrepreneurship

                           February 17, 2022

Reported by Mr. Cardin, with an amendment and an amendment to the title
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL


 
 To require the Administrator of the Small Business Administration to 
        establish an SBIC Working Group, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``SBIC Working Group Act of 
2021''.</DELETED>

<DELETED>SEC. 2. SBIC WORKING GROUP.</DELETED>

<DELETED>    (a) Definitions.--In this section--</DELETED>
        <DELETED>    (1) the terms ``Administration'' and 
        ``Administrator'' mean the Small Business Administration and 
        the Administrator thereof, respectively;</DELETED>
        <DELETED>    (2) the term ``covered Members'' means the Chair 
        and Ranking Member of--</DELETED>
                <DELETED>    (A) the Committee on Small Business and 
                Entrepreneurship of the Senate; and</DELETED>
                <DELETED>    (B) the Committee on Small Business of the 
                House of Representatives;</DELETED>
        <DELETED>    (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);</DELETED>
        <DELETED>    (4) the term ``low-income community'' has the 
        meaning given the term in section 45D(e) of the Internal 
        Revenue Code of 1986;</DELETED>
        <DELETED>    (5) the term ``rural area'' has the meaning given 
        the term by the Bureau of the Census;</DELETED>
        <DELETED>    (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);</DELETED>
        <DELETED>    (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));</DELETED>
        <DELETED>    (8) the term ``underfinanced State'' means a State 
        that has below median financing, as determined by the 
        Administrator; and</DELETED>
        <DELETED>    (9) the term ``underserved community'' means--
        </DELETED>
                <DELETED>    (A) a HUBZone, as defined in section 31(b) 
                of the Small Business Act (15 U.S.C. 
                657a(b));</DELETED>
                <DELETED>    (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;</DELETED>
                <DELETED>    (C) a community that has been designated 
                as a promise zone by the Secretary of Housing and Urban 
                Development; and</DELETED>
                <DELETED>    (D) a community that has been designated 
                as a qualified opportunity zone under section 1400Z-1 
                of the Internal Revenue Code of 1986.</DELETED>
<DELETED>    (b) Establishment.--Not later than 90 days after the date 
on which the covered Members submit to the Administrator a notification 
that the covered Members have made all selections described in 
subparagraphs (A)(ii), (B)(ii), and (D) of paragraph (1) (and that the 
individuals so selected have accepted those assignments), the 
Administrator shall establish an SBIC Working Group (referred to in 
this section as the ``Working Group''), which shall--</DELETED>
        <DELETED>    (1) include--</DELETED>
                <DELETED>    (A) 4 representatives--</DELETED>
                        <DELETED>    (i) among general partners of 
                        licensees that have a demonstrated record of 
                        investing in--</DELETED>
                                <DELETED>    (I) low-income 
                                communities;</DELETED>
                                <DELETED>    (II) communities that have 
                                been designated as qualified 
                                opportunity zones under section 1400Z-1 
                                of the Internal Revenue Code of 
                                1986;</DELETED>
                                <DELETED>    (III) businesses primarily 
                                engaged in research and 
                                development;</DELETED>
                                <DELETED>    (IV) 
                                manufacturers;</DELETED>
                                <DELETED>    (V) businesses primarily 
                                owned or controlled by individuals in 
                                underserved communities before 
                                receiving capital from the licensee; 
                                and</DELETED>
                                <DELETED>    (VI) rural areas; 
                                and</DELETED>
                        <DELETED>    (ii) of whom--</DELETED>
                                <DELETED>    (I) 1 shall be selected by 
                                the Chair of the Committee on Small 
                                Business and Entrepreneurship of the 
                                Senate;</DELETED>
                                <DELETED>    (II) 1 shall be selected 
                                by the Ranking Member of the Committee 
                                on Small Business and Entrepreneurship 
                                of the Senate;</DELETED>
                                <DELETED>    (III) 1 shall be selected 
                                by the Chair of the Committee on Small 
                                Business of the House of 
                                Representatives; and</DELETED>
                                <DELETED>    (IV) 1 shall be selected 
                                by the Ranking Member of the Committee 
                                on Small Business of the House of 
                                Representatives;</DELETED>
                <DELETED>    (B) 4 representatives--</DELETED>
                        <DELETED>    (i) from licensees, of whom 1 
                        shall be an owner of a small business 
                        investment company or fund manager that is 
                        located in--</DELETED>
                                <DELETED>    (I) a low-income 
                                community;</DELETED>
                                <DELETED>    (II) a community that has 
                                been designated as a qualified 
                                opportunity zone under section 1400Z-1 
                                of the Internal Revenue Code of 
                                1986;</DELETED>
                                <DELETED>    (III) an underserved 
                                community;</DELETED>
                                <DELETED>    (IV) a rural area; 
                                or</DELETED>
                                <DELETED>    (V) an underfinanced 
                                State; and</DELETED>
                        <DELETED>    (ii) of whom--</DELETED>
                                <DELETED>    (I) 1 shall be selected by 
                                the Chair of the Committee on Small 
                                Business and Entrepreneurship of the 
                                Senate;</DELETED>
                                <DELETED>    (II) 1 shall be selected 
                                by the Ranking Member of the Committee 
                                on Small Business and Entrepreneurship 
                                of the Senate;</DELETED>
                                <DELETED>    (III) 1 shall be selected 
                                by the Chair of the Committee on Small 
                                Business of the House of 
                                Representatives; and</DELETED>
                                <DELETED>    (IV) 1 shall be selected 
                                by the Ranking Member of the Committee 
                                on Small Business of the House of 
                                Representatives;</DELETED>
                <DELETED>    (C) the Associate Administrator for the 
                Office of Investment and Innovation of the 
                Administration, who shall--</DELETED>
                        <DELETED>    (i) serve as the Chair of the 
                        Working Group; and</DELETED>
                        <DELETED>    (ii) select not more than 4 
                        additional representatives from the Office of 
                        Investment and Innovation of the Administration 
                        to serve as representatives of the Working 
                        Group; and</DELETED>
                <DELETED>    (D) 4 representatives from the investment 
                industry or academia, or who are bank limited partners, 
                with expertise in developing and monitoring 
                interventions to expand the investment industry, of 
                whom--</DELETED>
                        <DELETED>    (i) 1 shall be selected by the 
                        Chair of the Committee on Small Business and 
                        Entrepreneurship of the Senate;</DELETED>
                        <DELETED>    (ii) 1 shall be selected by the 
                        Ranking Member of the Committee on Small 
                        Business and Entrepreneurship of the 
                        Senate;</DELETED>
                        <DELETED>    (iii) 1 shall be selected by the 
                        Chair of the Committee on Small Business of the 
                        House of Representatives; and</DELETED>
                        <DELETED>    (iv) 1 shall be selected by the 
                        Ranking Member of the Committee on Small 
                        Business of the House of 
                        Representatives;</DELETED>
        <DELETED>    (2) develop recommendations regarding how the 
        Administrator could increase the number of--</DELETED>
                <DELETED>    (A) applicants to become small business 
                investment companies, with a focus on management teams 
                or companies located in--</DELETED>
                        <DELETED>    (i) low-income 
                        communities;</DELETED>
                        <DELETED>    (ii) communities that have been 
                        designated as qualified opportunity zones under 
                        section 1400Z-1 of the Internal Revenue Code of 
                        1986;</DELETED>
                        <DELETED>    (iii) underserved communities; 
                        and</DELETED>
                        <DELETED>    (iv) rural areas; and</DELETED>
                <DELETED>    (B) investments made in underfinanced 
                States;</DELETED>
        <DELETED>    (3) develop recommendations for incentives for 
        small business investment companies to--</DELETED>
                <DELETED>    (A) invest and locate in underlicensed 
                States and underfinanced States; and</DELETED>
                <DELETED>    (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; 
                and</DELETED>
        <DELETED>    (4) develop recommendations for metrics of 
        success, and benchmarks for success, with respect to the goals 
        described in this section.</DELETED>
<DELETED>    (c) Availability of Meetings.--The Working Group may make 
the meetings of the Working Group open to the public without regard to 
whether those meetings are held in-person, virtually, or by some other 
means.</DELETED>
<DELETED>    (d) Report.--Not later than 1 year after the date on which 
the Administrator establishes the Working Group under subsection (b), 
the Working Group shall submit to 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--</DELETED>
        <DELETED>    (1) the recommendations of the Working Group; 
        and</DELETED>
        <DELETED>    (2) a recommended plan and timeline for 
        implementing the recommendations described in paragraph 
        (1).</DELETED>
<DELETED>    (e) Termination.--The Working Group shall terminate on the 
date on which the Working Group submits the report required under 
subsection (d).</DELETED>
<DELETED>    (f) Applicability of Federal Advisory Committee Act.--The 
Federal Advisory Committee Act (5 U.S.C. App.) shall not apply with 
respect to the Working Group or the activities of the Working 
Group.</DELETED>

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 ``Advisory Committee'' means the SBIC Advisory 
        Committee established under subsection (b);
            (3) 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;
            (4) the terms ``licensee'', ``small business investment 
        company'', and ``underlicensed State'' have the meanings given 
        those terms in section 103 of the Small Business Investment Act 
        of 1958 (15 U.S.C. 662);
            (5) the term ``low-income community'' has the meaning given 
        the term in section 45D(e) of the Internal Revenue Code of 
        1986;
            (6) the term ``rural area'' has the meaning given the term 
        by the Bureau of the Census;
            (7) 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);
            (8) 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));
            (9) the term ``underfinanced State'' means a State that has 
        below median financing, as determined by the Administrator; and
            (10) 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 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 on 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 on 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 on 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 on 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 communities, entities, or areas 
                described in subclauses (I) through (VII) of paragraph 
                (1)(B)(i).
            (3) Chairperson.--The Chairperson of the Advisory Committee 
        shall be the member of the Advisory Committee appointed under 
        paragraph (1)(A).
            (4) Period of appointment.--Members of the Advisory 
        Committee shall be appointed for the life of the Advisory 
        Committee.
            (5) 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 how 
        the Administrator may increase the number of applicants to 
        become small business investment companies, with a focus on 
        management teams or companies investing in or located in--
                    (A) low-income communities;
                    (B) underserved communities;
                    (C) rural areas; or
                    (D) underfinanced States;
            (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; and
            (3) concerning metrics of success, and benchmarks for 
        success, with respect to the goals described in this section.
    (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--
            (1) the recommendations of the Advisory Committee; and
            (2) a discussion of the impact of State, local, and 
        financial institution investment in small business investment 
        companies on small business concerns in rural areas, low-income 
        communities, underserved communities, and underfinanced States.
    (g) Termination.--The Advisory Committee shall terminate on the 
date on which the Advisory Committee submits the report required under 
subsection (f).
            Amend the title so as to read: ``A bill to require the 
        Administrator of the Small Business Administration to establish 
        an SBIC Advisory Committee, and for other purposes.''.
                                                       Calendar No. 280

117th CONGRESS

  2d Session

                                S. 2521

_______________________________________________________________________

                                 A BILL

 To require the Administrator of the Small Business Administration to 
        establish an SBIC Working Group, and for other purposes.

_______________________________________________________________________

                           February 17, 2022

        Reported with an amendment and an amendment to the title