110th CONGRESS
1st Session
H. R. 1719
To amend the Small Business Investment Act of 1958 to reauthorize
and expand the New Markets Venture Capital Program, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
March 27, 2007
Ms. MOORE of Wisconsin (for herself and Mr. ROGERS of Kentucky) introduced
the following bill; which was referred to the Committee on Small Business
A BILL
To amend the Small Business Investment Act of 1958 to reauthorize
and expand the New Markets Venture Capital Program, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Securing Equity for the Economic Development
of Low Income Areas Act of 2007'.
SEC. 2. EXPANSION OF NEW MARKETS VENTURE CAPITAL PROGRAM.
(a) Selection of Companies in Each Geographic Region- Section 354 of the
Small Business Investment Act of 1958 (15 U.S.C. 689b) is amended by adding
at the end the following new subsection:
`(f) Geographic Requirement- In selecting companies to participate as New
Markets Venture Capital companies in the program established under this
part, the Administrator shall select, to the extent practicable, from among
companies submitting applications under subsection (b), at least one company
from each geographic region of the Small Business Administration.'
(b) Participation in New Markets Venture Capital Program-
(1) ADMINISTRATION PARTICIPATION REQUIRED- Section 353 of the Small Business
Investment Act of 1958 (15 U.S.C. 689b) is amended by striking `under
which the Administrator may' and inserting `under which the Administrator
shall'.
(2) SMALL MANUFACTURER PARTICIPATION AGREEMENTS REQUIRED- Such section,
as amended by paragraph (1), is further amended, by inserting after `section
352' the following: `(with at least one such agreement to be with a company
engaged primarily in development of and investment in small manufacturers,
to the extent practicable)'.
(c) Report to Congress- Not later than 1 year after the date of the enactment
of this Act, the Administrator of the Small Business Administration shall
submit to Congress a report evaluating the success of the expansion of the
New Markets Venture Capital Program under this section.
SEC. 3. ESTABLISHMENT OF OFFICE OF NEW MARKETS VENTURE CAPITAL.
(a) In General- Title II of the Small Business Investment Act of 1958 (15
U.S.C. 671 et seq.) is amended by adding at the end the following new section:
`SEC. 202. OFFICE OF NEW MARKETS VENTURE CAPITAL.
`(a) Establishment- There is hereby established in the Investment Division
of the Small Business Administration an office to be known as the `Office
of New Markets Venture Capital'.
`(b) Director- The Office of New Markets Venture Capital shall be headed
by a Director who shall be appointed by the Administrator.
`(c) Responsibilities of Director- Subject to the direction and control
of the Administrator, the responsibilities of the Director of the Office
of New Markets Venture Capital are as follows:
`(1) To administer the New Markets Venture Capital Program.
`(2) To periodically assess the nature and scope of the New Markets Venture
Capital Program and to advise the Administrator on recommended changes
to the program based on such assessment.
`(3) To work to expand the number of small business concerns participating
in the New Markets Venture Capital Program.
`(4) To encourage investment in small manufacturing.
`(5) To perform such other duties relating to such responsibilities as
the Administrator may provide.'.
(b) Authorization of Appropriations- There is authorized to be appropriated
$1,000,000 to carry out this section.
SEC. 4. LOW-INCOME GEOGRAPHIC AREAS.
(a) Modification of Definition of Low-Income Geographic Area for Purposes
of New Markets Venture Capital Program-
(1) IN GENERAL- Section 351(3)(A)(ii)(I) of the Small Business Investment
Act of 1958 (15 U.S.C. 689(3)(A)(ii)(I)) is amended by striking `50 percent'
and all that follows through the end and inserting `the median family
income in that tract does not exceed 80 percent of the greater of the
statewide median family income or the metropolitan area median family
income; or'.
(2) APPLICATION OF AMENDED DEFINITION TO CAPITAL REQUIREMENT- The definition
of low-income geographic area in section 351(3) of the Small Business
Investment Act of 1958 (15 U.S.C. 689(3)), as amended by subsection (a),
shall apply to private capital raised under section 354(d)(1) of the Small
Business Investment Act of 1958 (15 U.S.C. 689c(d)(1)) before, on, or
after the effective date of the amendment made by subsection (a).
(b) Study on Availability of Equity Capital-
(1) STUDY REQUIRED- Before the expiration of the 180-day period that begins
on the date of the enactment of this Act, the Chief Counsel for Advocacy
of the Small Business Administration shall conduct a study on the availability
of equity capital in low-income urban and rural areas.
(2) REPORT- Not later than 90 days after the completion of the study under
paragraph (1) the Administrator shall submit to Congress a report containing
the findings of the study required under paragraph (1) and any recommendations
of the Administrator based on such study.
SEC. 5. CONDITIONALLY APPROVED COMPANIES.
(a) Operational Assistance Grants to Conditionally Approved Companies- Section
358(a) of the Small Business Investment Act of 1958 (15 U.S.C. 689(a)) is
amended by adding at the end the following new paragraph:
`(6) GRANTS TO CONDITIONALLY APPROVED COMPANIES-
`(A) IN GENERAL- Subject to subparagraphs (A) and (B), upon the request
of a company conditionally-approved under section 354(c), the Administrator
shall make a grant to the company under this subsection.
`(B) REPAYMENT BY COMPANIES NOT APPROVED- If a company receives a grant
under paragraph (6) and does not enter into a participation agreement
for final approval, the company shall repay the amount of the grant
to the Administrator.
`(C) DEDUCTION FROM GRANT TO APPROVED COMPANY- If a company receives
a grant under paragraph (6) and receives final approval under section
354(e), the Administrator shall deduct the amount of the grant under
that paragraph from the total grant amount that the company receives
for operational assistance.
`(D) AMOUNT OF GRANT- No company may receive a grant of more than $50,000
under this paragraph.'.
(b) Limitation on Time for Final Approval- Section 354(d) of the Small Business
Investment Act of 1958 (15 U.S.C. 689c(d)) is amended by striking `a period
of time, not to exceed 2 years,' and inserting `2 years'.
SEC. 6. APPLICATIONS FOR NEW MARKETS VENTURE CAPITAL PROGRAM.
Not later than 60 days after the date of the enactment of this section,
the Administrator shall prescribe standard documents for final New Markets
Venture Capital Company approval application under section 354(e) of the
Small Business Investment Act of 1958 (15 U.S.C. 689c(e)). The Administrator
shall assure that the standard documents shall be designed to substantially
reduce the cost burden of the application process on the companies involved.
SEC. 7. ELIMINATION OF MATCHING REQUIREMENT.
Section 354(d)(2)(A)(i) of the Small Business Investment Act of 1958 (15
U.S.C. 689c(d)(2)(A)(i)) is amended--
(1) in subclause (I) by adding `and' at the end;
(2) in subclause (II) by striking `and' at the end; and
(3) by striking subclause (III).
SEC. 8. OPERATIONAL ASSISTANCE GRANTS.
Section 358(a)(4)(A) of the Small Business Investment Act of 1958 (15 U.S.C.
689g(a)(4)(A)) is amended--
(1) by striking `shall be equal to' and all that follows through the period
at the end and by inserting `shall be equal to the lesser of--'; and
(2) by adding at the end the following:
`(i) 10 percent of the resources (in cash or in kind) raised by the
company under section 354(d)(2); or
SEC. 9. AUTHORIZATION OF APPROPRIATIONS.
(a) Reauthorization of New Markets Venture Capital Program- Section 368(a)
of the Small Business Investment Act of 1958 (15 U.S.C. 689q(a)) is amended--
(1) by striking `fiscal years 2001 through 2006' and inserting `fiscal
years 2007 through 2009';
(2) in paragraph (1), by striking `$150,000,000' and inserting `$100,000,000';
and
(3) in paragraph (2), by striking `$30,000,000' and inserting `$25,000,000'.
(b) Authorization for Manufacturing and Regional New Markets Venture Capital
Companies- There is authorized to be appropriated $1,000,000, to be available
until expended, to carry out section 354(f) of the Small Business Investment
Act of 1958, as added by section 2, and to enter into participation agreements
with companies engaged primarily in development of and investment in small
manufacturers under section 353(1) of such Act, as amended by section 2.
END
