[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.
____________________