[Congressional Record Volume 167, Number 56 (Thursday, March 25, 2021)]
[Senate]
[Pages S1830-S1831]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. THUNE (for himself, Mrs. Shaheen, and Mrs. Fischer):
  S. 1058. A bill to amend the Small Business Investment Act of 1958 to 
provide opportunities to rural business investment companies, and for 
other purposes; to the Committee on Small Business and 
Entrepreneurship.
  Mr. THUNE. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1058

       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 ``Rural Capital Access Act''.

     SEC. 2. DEFINITIONS.

       In this Act--
       (1) the term ``Administration'' means the Small Business 
     Administration;
       (2) the term ``Administrator'' means the Administrator of 
     the Administration;
       (3) the term ``appropriate committees of Congress'' means--
       (A) the Committee on Small Business and Entrepreneurship of 
     the Senate;
       (B) the Committee on Agriculture, Nutrition, and Forestry 
     of the Senate;
       (C) the Committee on Small Business of the House of 
     Representatives; and
       (D) the Committee on Agriculture of the House of 
     Representatives;
       (4) the term ``rural business investment company'' has the 
     meaning given the term in section 384A of the Consolidated 
     Farm and Rural Development Act (7 U.S.C. 2009cc);
       (5) the term ``Secretary'' means the Secretary of 
     Agriculture; and
       (6) the term ``working group'' means the interagency 
     working group established under section 4(a).

     SEC. 3. RURAL BUSINESS INVESTMENT.

       (a) In General.--The Small Business Investment Act of 1958 
     (15 U.S.C. 661 et seq.) is amended--
       (1) in part A of title III (15 U.S.C. 681 et seq.)--
       (A) in section 303(b)(2) (15 U.S.C. 683(b)(2)), by adding 
     at the end the following:
       ``(E) Investments in rural areas.--
       ``(i) Definition.--In this subparagraph, the term `rural 
     area' has the meaning given the term in section 343(a) of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 
     1991(a)).
       ``(ii) Additional leverage.--

       ``(I) In general.--In calculating the outstanding leverage 
     of a company for the purposes of subparagraph (A), the 
     Administrator shall not include the amount of the cost basis 
     of any equity investment made by the company in a smaller 
     enterprise located in a rural area if the Administrator, 
     after performing an appropriate evaluation, determines that 
     such an exclusion will not result in additional risk to the 
     Administration or the Federal Government.
       ``(II) Limitation.--The amount excluded under subclause (I) 
     for a company shall not exceed $25,000,000 in any fiscal 
     year.'';

       (B) in section 308(g)(3) (15 U.S.C. 687(g)(3))--
       (i) in subparagraph (D), by striking ``and'' at the end;
       (ii) in subparagraph (E), by striking the period at the end 
     and inserting ``; and''; and
       (iii) by adding at the end the following:
       ``(F) the total number of rural business investment 
     companies, as defined in section 321(a), that received 
     leverage from the Administration under section 321 in the 
     previous year, including the amount of that leverage that 
     each such rural business investment company received.'';
       (C) in section 310(d)(1)(A) (15 U.S.C. 687b(d)(1)(A)), by 
     inserting ``(including each rural business investment company 
     that receives leverage under section 321)'' after ``Each 
     licensee''; and
       (D) by adding at the end the following:

     ``SEC. 321. RURAL BUSINESS INVESTMENT COMPANIES.

       ``(a) Definitions.--In this section--
       ``(1) the term `covered amounts' means, with respect to a 
     fiscal year, the amounts made available for that fiscal year 
     to grant leverage under this part to small business 
     investment companies;
       ``(2) the term `rural business investment company' has the 
     meaning given the term in section 384A of the Consolidated 
     Farm and Rural Development Act (7 U.S.C. 2009cc); and
       ``(3) the term `Secretary' means the Secretary of 
     Agriculture.
       ``(b) Leverage.--
       ``(1) In general.--Subject to paragraph (2), if the 
     Administration determines under subsection (c) that the 
     Administration will be unable to expend all of the covered 
     amounts for a particular fiscal year, the Administration 
     shall expend those unexpended covered amounts for that fiscal 
     year to grant leverage to rural business investment companies 
     for the purposes described in this part if, with respect to 
     that fiscal year, the Secretary determines that the Secretary 
     is unable to grant leverage to rural business investment 
     companies in a manner that is sufficient to satisfy the 
     leverage needs of those rural business investment companies.
       ``(2) Conditions.--With respect to leverage granted by the 
     Administration to a rural business investment company under 
     paragraph (1)--
       ``(A) the amount of the leverage made available shall be 
     subject to the limitations under section 303(b)(2);
       ``(B) for the purposes of subparagraph (A), any leverage 
     granted by the Secretary to the rural business investment 
     company under the program carried out under subtitle H of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 2009cc 
     et seq.) shall be included when determining the maximum 
     amount of outstanding leverage that may be made available to 
     the rural business investment company under this section; and
       ``(C) the Administration, in consultation with the 
     Secretary, shall--
       ``(i) impose such terms and conditions with respect to the 
     leverage that the Administration and the Secretary determine 
     to be appropriate; and
       ``(ii) in developing the terms and conditions described in 
     clause (i)--

       ``(I) ensure, to the maximum extent practicable, that those 
     terms and conditions are not--

       ``(aa) duplicative of other requirements applicable to 
     rural business investment companies; or
       ``(bb) otherwise unnecessary; and

       ``(II) take into consideration how rural business 
     investment companies that have been issued a license by the 
     Secretary under section 384D(e) of the Consolidated Farm and 
     Rural Development Act (7 U.S.C. 2009cc-3(e)) before the date 
     of enactment of this section could qualify to receive that 
     leverage.

       ``(c) Internal Evaluation.--Not later than June 1 of each 
     year, the Administration shall perform an evaluation to 
     determine whether the Administration will be unable to expend 
     all of the covered amounts for the fiscal year in which the 
     evaluation is made.''; and
       (2) in section 503(g) (15 U.S.C. 697(g)), by inserting ``, 
     and with respect to leverage granted under section 321,'' 
     after ``retained by the Administration under this section''.
       (b) SBA Requirements.--
       (1) Establishment of application process.--Not later than 
     180 days after the date of enactment of this Act, the 
     Administrator, in consultation with the Secretary, shall 
     establish a process through which a rural business investment 
     company may apply for leverage granted under section 321 of 
     the Small Business Investment Act of 1958, as added by 
     subsection (a) of this section.
       (2) Update to rules.--Not later than 180 days after the 
     date of enactment of this Act, and in addition to the process 
     established under paragraph (1), the Administrator shall make 
     any updates to the rules of the Administration that are 
     necessary as a result of this section and the amendments made 
     by this section.

     SEC. 4. INTERAGENCY WORKING GROUP.

       (a) Establishment.--Not later than 180 days after the date 
     of enactment of this Act, the Administrator, in consultation 
     with the Secretary, shall establish an interagency working 
     group to develop--
       (1) administrative recommendations for improving the 
     coordination between the Administration and the Department of 
     Agriculture in administering the program carried out under 
     part A of title III of the Small Business Investment Act of 
     1958 (15 U.S.C. 681 et seq.) and the program carried out 
     under subtitle H of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 2009cc et seq.), respectively; and
       (2) legislative recommendations for improving capital 
     access and investment in rural areas of the United States 
     through the programs described in paragraph (1), including by 
     increasing the number of licensees under those programs.

[[Page S1831]]

       (b) Members.--
       (1) In general.--The Administrator, in consultation with 
     the Secretary, shall appoint to the working group such 
     representatives from the Administration and the Department of 
     Agriculture, and such non-Federal industry stakeholders, as 
     the Administrator, in consultation with the Secretary, 
     determines to be appropriate.
       (2) Compensation.--No member of the working group may 
     receive any compensation by reason of the service of the 
     member on the working group.
       (c) Report to Congress.--Not later than 180 days after the 
     date on which the working group is established under 
     subsection (a), the working group shall submit to the 
     appropriate committees of Congress a report that contains--
       (1) the administrative actions that the Administration and 
     the Department of Agriculture should take to make the 
     improvements described in paragraph (1) of that subsection; 
     and
       (2) the legislative recommendations described in paragraph 
     (2) of that subsection.
       (d) Termination.--The working group shall terminate upon 
     submission of the report required under subsection (c).
       (e) Implementation of Recommendations.--Not later than 90 
     days after the date on which the working group submits the 
     report required under subsection (c), the Administration and 
     the Department of Agriculture shall take the administrative 
     actions described in paragraph (1) of that subsection.
       (f) Inapplicability 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.

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