[Congressional Record Volume 167, Number 88 (Thursday, May 20, 2021)]
[Senate]
[Pages S3302-S3303]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 1907. Mr. CARDIN submitted an amendment intended to be proposed by 
him to the bill S. 1260, to establish a new Directorate for Technology 
and Innovation in the National Science Foundation, to establish a 
regional technology hub program, to require a strategy and report on 
economic security, science, research, innovation, manufacturing, and 
job creation, to establish a

[[Page S3303]]

critical supply chain resiliency program, and for other purposes; which 
was ordered to lie on the table; as follows:

        At the appropriate place, insert the following:

     SEC. __. EQUITY INVESTMENT BY THE SBIC PROGRAM.

       (a) In General.--Part A of title III of the Small Business 
     Investment Act of 1958 (15 U.S.C. 681 et seq.) is amended--
       (1) in section 302(a) (15 U.S.C. 682(a))--
       (A) in paragraph (1)--
       (i) in subparagraph (A), by striking ``or'' at the end;
       (ii) in subparagraph (B), by striking the period at the end 
     and inserting ``; or''; and
       (iii) by adding at the end the following:
       ``(C) $20,000,000, adjusted every 5 years for inflation, 
     with respect to each participating investment company under 
     section 321.''; and
       (2) by adding at the end the following:

     ``SEC. 321. SMALL BUSINESS VENTURE CAPITAL AND EQUITY COMPANY 
                   INVESTMENT FACILITY.

       ``(a) Definitions.--In this section:
       ``(1) Covered investments.--The term `covered investments' 
     means investments in--
       ``(A) small-business concerns operating in critical 
     industries, including--
       ``(i) infrastructure, such as roads, bridges, and mass 
     transit;
       ``(ii) water supply and sewer;
       ``(iii) the electrical grid;
       ``(iv) broadband and telecommunications; and
       ``(v) clean energy;
       ``(B) small-business concerns not less than 50 percent of 
     which are owned and controlled by women, minorities, or 
     veterans;
       ``(C) small-business concerns operating in rural or low-
     income areas, as determined by the Administrator using the 
     most recently available data from the Bureau of the Census; 
     or
       ``(D) small-business concerns that received awards under 
     the SBIR or STTR program under section 9 of the Small 
     Business Act (15 U.S.C. 638).
       ``(2) Eligible small-business concern.--The term `eligible 
     small-business concern' means a small-business concern that 
     is assigned a North American Industry Classification System 
     code beginning with 31, 32, or 33 at the time at which the 
     small-business concern receives an investment from a 
     participating investment company under the facility.
       ``(3) Facility.--The term `facility' means the facility 
     established under subsection (b).
       ``(4) Participating investment company.--The term 
     `participating investment company' means a small business 
     investment company approved to participate in the facility.
       ``(5) Venture security.--The term `venture security' 
     includes preferred stock, a preferred limited partnership 
     interest or a similar instrument, including debentures under 
     the terms of which interest is payable only to the extent of 
     earnings.
       ``(b) Establishment.--
       ``(1) Facility.--The Administrator shall establish and 
     carry out a facility to provide financial assistance to 
     participating investment companies that make investments in 
     covered investments or eligible small-business concerns in 
     accordance with this section.
       ``(2) Administration of facility.--The facility shall be 
     administered by the Administrator acting through the 
     Associate Administrator described in section 201.
       ``(c) License.--The requirements for a license to operate 
     as a small business investment company under section 301(c) 
     shall apply to a participating investment company, except 
     that a participating investment company shall, in the 
     application to participate in the facility, indicate whether 
     the participating investment company shall make investments 
     in eligible small-business concerns through--
       ``(1) the issuance of debentures; or
       ``(2) the issuance of venture securities.
       ``(d) Required Investments.--A participating investment 
     company shall invest not less than 30 percent of funds 
     received under the facility in--
       ``(1) covered investments; or
       ``(2) eligible small-business concerns.
       ``(e) Maximum Leverage for Issuance of Debentures.--
       ``(1) In general.--Except as provided in paragraphs (2) and 
     (3), the maximum amount of outstanding leverage made 
     available to any participating investment company that issues 
     debentures under this section shall not exceed the lesser 
     of--
       ``(A) 150 percent of the private capital of the company; or
       ``(B) $175,000,000.
       ``(2) Exceptions.--The maximum amount of outstanding 
     leverage made available to any participating investment 
     company--
       ``(A) shall not exceed the lesser of 200 percent of the 
     private capital of the company or $200,000,000, if--
       ``(i) the company invests not less than 45 percent of the 
     funds in covered investments; or
       ``(ii) the company invests not less than 40 percent of the 
     funds in eligible small-business concerns; and
       ``(B) shall not exceed the lesser of 200 percent of the 
     private capital of the company or $400,000,000, if--
       ``(i) the company invests not less than 60 percent of the 
     funds in eligible small-business concerns; and
       ``(ii) the amount appropriated to carry out this section 
     for the fiscal year in which the investments are made is not 
     less than $20,000,000,000.
       ``(f) Issuance and Purchase of Venture Securities.--
       ``(1) In general.--The Administration may purchase venture 
     securities issued by a participating investment company under 
     the facility, which shall be in an amount--
       ``(A) except as provided in subparagraph (B), that does not 
     exceed the lesser of--
       ``(i) 75 percent of the private capital of the company; or
       ``(ii) $75,000,000; or
       ``(B) that does not exceed the lesser of 100 percent of the 
     private capital of the company or $100,000,000, if--
       ``(i) the company invests not less than 45 percent of the 
     funds in covered investments; or
       ``(ii) the company invests not less than 40 percent of the 
     funds in eligible small-business concerns.
       ``(2) Fees and interest.--In purchasing a venture security 
     under paragraph (1), the Administration shall not assess any 
     fee or interest on the value of the venture security.
       ``(3) Distributions.--With respect to distributions related 
     to the issuance of a venture security purchased by the 
     Administration, the Administration shall be treated in the 
     same manner as the most favored investor in the participating 
     investment company.
       ``(g) Regulations.--The Administration shall issue such 
     regulations as may be necessary to carry out this section.
       ``(h) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Administration $10,000,000,000, to 
     remain available until expended, to carry out this 
     section.''.
       (3) Repeal of participating securities.--
       (A) Repeal.--Section 303(g) of the Small Business 
     Investment Act of 1958 (15 U.S.C. 683(g)) is repealed.
       (B) Effect on existing purchases.--The repeal under 
     subparagraph (A) shall not be construed to require the 
     Administrator of the Small Business Administration to cancel, 
     revoke, withdraw, or otherwise affect any purchase of 
     participating securities under section 303(g) of the Small 
     Business Investment Act of 1958 (15 U.S.C. 638(g)) before the 
     date of enactment of this Act.
                                 ______