[Congressional Record Volume 167, Number 88 (Thursday, May 20, 2021)]
[Senate]
[Page S3312]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 1915. Mr. HICKENLOOPER (for himself and Mr. Risch) submitted an
amendment intended to be proposed to amendment SA 1502 proposed by Mr.
Schumer 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 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. __. MICROCAP SMALL BUSINESS INVESTMENT COMPANY
DESIGNATION.
(a) In General.--Title III of the Small Business Investment
Act of 1958 (15 U.S.C. 681 et seq.) is amended--
(1) in section 301(c) (15 U.S.C. 681(c)), by adding at the
end the following:
``(5) Microcap small business investment company license.--
``(A) In general.--Notwithstanding any other provision of
law, the Administrator may approve an application and issue
not more than 10 licenses annually under this subsection with
respect to any applicant--
``(i) that would otherwise be issued a license under this
subsection, except that the management of the applicant does
not satisfy the qualification requirements under paragraph
(3)(A)(ii) to the extent that such requirements relate to
investment experience and track record, including any such
requirements further set forth in section 107.305 of title
13, Code of Federal Regulations, or any successor regulation;
``(ii) for which the fund managers have--
``(I) a documented record of successful business
experience;
``(II) a record of business management success; or
``(III) knowledge in the particular industry or business in
which the investment strategy is being pursued; and
``(iii) that, in addition to any other requirement
applicable to the applicant under this title or the rules
issued to carry out this title (including section
121.301(c)(2) of title 13, Code of Federal Regulations, or
any successor regulation), will make not less than 25 percent
of its investments in--
``(I) low-income communities, as that term is defined in
section 45D(e) of the Internal Revenue Code of 1986;
``(II) a community that has been designated as a qualified
opportunity zone 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 applicant; and
``(VI) rural areas, as that term is defined by the Bureau
of the Census.
``(B) Priority; streamlined process.--With respect to an
application for a license pursuant to this paragraph, the
Administrator shall--
``(i) give priority to an applicant for such a license that
is located in an underlicensed State; and
``(ii) establish a streamlined process for applicants
submitting such an application.
``(C) Timing for issuance of license.--Notwithstanding
paragraph (2), with respect to an application for a license
submitted to the Administrator pursuant to this paragraph,
the Administrator shall--
``(i) not later than 60 days after the date on which the
application is submitted to the Administrator, process and
provide complete feedback with respect to any pre-license
application requirements applicable to the applicant;
``(ii) not restrict the submission of any application
materials; and
``(iii) not later than 90 days after the date on which the
application is submitted to the Administrator--
``(I) approve the application and issue a license for such
operation to the applicant, if the requirements for the
license are satisfied; or
``(II) based upon facts in the record--
``(aa) disapprove the application; and
``(bb) provide the applicant with--
``(AA) a clear, written explanation of the reason for the
disapproval; and
``(BB) a chance to remedy any issues with the application
and immediately reapply, with technical assistance provided
as needed and a new determination made by the Administrator
not later than 30 days after the date on which the applicant
re-submits the application.
``(D) Leverage.--A company licensed pursuant to this
paragraph shall--
``(i) not be eligible to receive leverage in an amount that
is more than $25,000,000; and
``(ii) access leverage in an amount that is not more than
100 percent of the private capital of the applicant.
``(E) Investment committee.--
``(i) In general.--Each company licensed pursuant to this
paragraph shall have not fewer than 2 independent members on
the investment committee of the company in a manner that
complies with the following requirements:
``(I) The independent members of the investment committee
are or have been licensed managers of small business
investment companies within the preceding 10-year period.
``(II) No small business investment company described in
subclause (I) may adversely affected by the relationship of
the independent members of the investment committee with the
company licensed pursuant to this paragraph.
``(III) The independent members of the investment committee
are required to approve each investment made by the company.
``(IV) The independent members of the investment committee
shall not be paid a management fee, but may receive paid
expenses and a portion of any carried interest.
``(ii) Leverage limits.--Any leverage associated with a
company licensed pursuant to this paragraph shall not be
counted toward the leverage limits of the independent members
of the investment committee of the company under this
title.''; and
(2) in section 303(d) (15 U.S.C. 683(d)), by inserting
``(or, with respect to a company licensed under section
301(c)(5), 50 percent)'' after ``25 percent''.
(b) SBA Requirements.--
(1) Definitions.--In this subsection--
(A) the term ``Administrator'' means the Administrator of
the Small Business Administration; and
(B) the term ``covered company'' means an entity that is
licensed to operate as a small business investment company
pursuant to paragraph (5) of section 301(c) of the Small
Business Investment Act of 1958 (15 U.S.C. 681(c)), as added
by subsection (a).
(2) Rules.--Not later than 90 days after the date of
enactment of this Act, the Administrator shall issue rules to
carry out this section and the amendments made by this
section.
(3) Annual report.--Not later than 1 year after the date of
enactment of this Act, and annually thereafter, the
Administrator shall publicly publish a report that details,
for the year covered by the report--
(A) the number of covered companies licensed by the
Administrator;
(B) the industries in which covered companies have
invested;
(C) the geographic locations of covered companies; and
(D) the aggregate performance of covered companies.
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