[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.
______