[Congressional Record Volume 168, Number 157 (Wednesday, September 28, 2022)]
[Senate]
[Pages S5168-S5170]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  SBIC ADVISORY COMMITTEE ACT OF 2022

  Mr. SCHUMER. Mr. President, I ask unanimous consent that the Senate 
proceed to the immediate consideration of Calendar No. 280, S. 2521.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The legislative clerk read as follows:

       A bill (S. 2521) to require the Administrator of the Small 
     Business Administration to establish an SBIC Working Group, 
     and for other purposes.

  There being no objection, the Senate proceeded to consider the bill, 
which had been reported from the Committee on Small Business and 
Entrepreneurship, with an amendment to strike all after the enacting 
clause and insert in lieu thereof the following:

     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.

[[Page S5169]]

       (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).

  Mr. SCHUMER. I further ask that the committee-reported substitute 
amendment be withdrawn.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The committee-reported amendment in the nature of a substitute was 
withdrawn.
  Mr. SCHUMER. I ask that the Cardin substitute amendment, which is at 
the desk, be considered and agreed to.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment (No. 6029) in the nature of a substitute was agreed to 
as follows:

                (Purpose: In the nature of a substitute)

        Strike all after the enacting clause and insert the 
     following:

     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 ``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;
       (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);
       (4) the term ``low-income community'' has the meaning given 
     the term in section 45D(e) of the Internal Revenue Code of 
     1986;
       (5) the term ``rural area'' has the meaning given the term 
     by the Bureau of the Census;
       (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);
       (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));
       (8) the term ``underfinanced State'' means a State that has 
     below median financing, as determined by the Administrator; 
     and
       (9) 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 (referred to in this section as the 
     ``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

[[Page S5170]]

       (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 
     in 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 
     in 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 in 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 
     in 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 entities described in subclauses (I) through (VII) of 
     paragraph (1)(B)(i).
       (3) Private sector members.--Not fewer than 2 and not more 
     than 4 of the members of the Advisory Committee shall be 
     investors in the private sector who--
       (A) invest in small business concerns; and
       (B) as of the date of appointment, do not participate in 
     the small business investment program under title III of the 
     Small Business Investment Act of 1958 (15 U.S.C. 681 et 
     seq.).
       (4) Chairperson.--The Chairperson of the Advisory Committee 
     shall be the member of the Advisory Committee appointed under 
     paragraph (1)(A).
       (5) Period of appointment.--Members of the Advisory 
     Committee shall be appointed for the life of the Advisory 
     Committee.
       (6) 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 
     diversifying management teams or companies;
       (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;
       (3) concerning metrics of success, and benchmarks for 
     success, with respect to the goals described in this section; 
     and
       (4) concerning the impact of the small business investment 
     program under title III of the Small Business Investment Act 
     of 1958 (15 U.S.C. 681 et seq.) on the private investment 
     market, including whether investments under the program 
     compete with the private sector.
       (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 the recommendations of the Advisory Committee 
     described in subsection (e).
       (g) Termination.--The Advisory Committee shall terminate on 
     the date on which the Advisory Committee submits the report 
     required under subsection (f).
  Mr. SCHUMER. I further ask that the bill, as amended, be considered 
read a third time.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The bill, as amended, was ordered to be engrossed for a third reading 
and was read the third time.
  Mr. SCHUMER. I know of no further debate on the bill, as amended.
  The PRESIDING OFFICER. If there is no further debate, the bill having 
been read the third time, the question is, Shall the bill pass, as 
amended?
  The bill (S. 2521), as amended, was passed.
  Mr. SCHUMER. Finally, I ask that the committee-reported title 
amendment be agreed to and that the motion to reconsider be considered 
made and laid upon the table with no intervening action or debate.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The committee-reported amendment to the title was agreed to as 
follows:

                     (Purpose: To amend the title)

         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.''.
  Mr. SCHUMER. I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The senior assistant legislative clerk proceeded to call the roll.
  Mr. SCHUMER. Mr. President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.

                          ____________________