| 1 | 1 | | II |
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| 2 | 2 | | 118THCONGRESS |
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| 3 | 3 | | 1 |
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| 4 | 4 | | STSESSION S. 46 |
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| 5 | 5 | | To establish a small business and domestic production recovery investment |
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| 6 | 6 | | facility, and for other purposes. |
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| 7 | 7 | | IN THE SENATE OF THE UNITED STATES |
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| 8 | 8 | | JANUARY24 (legislative day, JANUARY3), 2023 |
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| 9 | 9 | | Mr. R |
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| 10 | 10 | | UBIO(for himself and Mr. RISCH) introduced the following bill; which |
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| 11 | 11 | | was read twice and referred to the Committee on Small Business and En- |
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| 12 | 12 | | trepreneurship |
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| 13 | 13 | | A BILL |
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| 14 | 14 | | To establish a small business and domestic production |
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| 15 | 15 | | recovery investment facility, and for other purposes. |
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| 16 | 16 | | Be it enacted by the Senate and House of Representa-1 |
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| 17 | 17 | | tives of the United States of America in Congress assembled, 2 |
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| 18 | 18 | | SECTION 1. SHORT TITLE. 3 |
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| 19 | 19 | | This Act may be cited as the ‘‘American Innovation 4 |
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| 20 | 20 | | and Manufacturing Act’’. 5 |
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| 21 | 21 | | SEC. 2. SMALL BUSINESS INVESTMENT COMPANY PRO-6 |
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| 22 | 22 | | GRAM. 7 |
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| 23 | 23 | | (a) I |
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| 24 | 24 | | NGENERAL.—Part A of title III of the Small 8 |
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| 25 | 25 | | Business Investment Act of 1958 (15 U.S.C. 681 et seq.) 9 |
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| 26 | 26 | | is amended— 10 |
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| 28 | 28 | | kjohnson on DSK79L0C42PROD with BILLS 2 |
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| 29 | 29 | | •S 46 IS |
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| 30 | 30 | | (1) in section 302(a) (15 U.S.C. 682(a))— 1 |
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| 31 | 31 | | (A) in paragraph (1)— 2 |
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| 32 | 32 | | (i) in subparagraph (A), by striking 3 |
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| 33 | 33 | | ‘‘or’’ at the end; 4 |
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| 34 | 34 | | (ii) in subparagraph (B), by striking 5 |
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| 35 | 35 | | the period at the end and inserting ‘‘; or’’; 6 |
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| 36 | 36 | | and 7 |
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| 37 | 37 | | (iii) by adding at the end the fol-8 |
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| 38 | 38 | | lowing: 9 |
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| 39 | 39 | | ‘‘(C) $20,000,000, adjusted every 5 years 10 |
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| 40 | 40 | | for inflation, with respect to each licensee au-11 |
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| 41 | 41 | | thorized or seeking authority to sell bonds to 12 |
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| 42 | 42 | | the Administration as a participating invest-13 |
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| 43 | 43 | | ment company under section 321.’’; and 14 |
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| 44 | 44 | | (2) by adding at the end the following: 15 |
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| 45 | 45 | | ‘‘SEC. 321. SMALL BUSINESS AND DOMESTIC PRODUCTION 16 |
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| 46 | 46 | | RECOVERY INVESTMENT FACILITY. 17 |
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| 47 | 47 | | ‘‘(a) D |
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| 48 | 48 | | EFINITIONS.—In this section: 18 |
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| 49 | 49 | | ‘‘(1) E |
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| 50 | 50 | | LIGIBLE SMALL BUSINESS CONCERN .— 19 |
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| 51 | 51 | | The term ‘eligible small business concern’— 20 |
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| 52 | 52 | | ‘‘(A) means a small business concern that 21 |
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| 53 | 53 | | is a manufacturing business that is assigned a 22 |
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| 54 | 54 | | North American Industry Classification System 23 |
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| 55 | 55 | | code beginning with 31, 32, or 33 at the time 24 |
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| 56 | 56 | | at which the small business concern receives an 25 |
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| 58 | 58 | | kjohnson on DSK79L0C42PROD with BILLS 3 |
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| 59 | 59 | | •S 46 IS |
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| 60 | 60 | | investment from a participating investment 1 |
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| 61 | 61 | | company under the facility; and 2 |
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| 62 | 62 | | ‘‘(B) does not include an entity described 3 |
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| 63 | 63 | | in section 7(a)(37)(A)(iv)(III) of the Small 4 |
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| 64 | 64 | | Business Act (15 U.S.C. 5 |
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| 65 | 65 | | 636(a)(37)(A)(iv)(III)). 6 |
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| 66 | 66 | | ‘‘(2) F |
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| 67 | 67 | | ACILITY.—The term ‘facility’ means the 7 |
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| 68 | 68 | | facility established under subsection (b). 8 |
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| 69 | 69 | | ‘‘(3) F |
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| 70 | 70 | | UND.—The term ‘Fund’ means the fund 9 |
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| 71 | 71 | | established under subsection (h). 10 |
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| 72 | 72 | | ‘‘(4) P |
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| 73 | 73 | | ARTICIPATING INVESTMENT COMPANY .— 11 |
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| 74 | 74 | | The term ‘participating investment company’ means 12 |
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| 75 | 75 | | a small business investment company approved 13 |
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| 76 | 76 | | under subsection (d) to participate in the facility. 14 |
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| 77 | 77 | | ‘‘(5) P |
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| 78 | 78 | | ROTE´GE´INVESTMENT COMPANY .—The 15 |
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| 79 | 79 | | term ‘prote´ge´investment company’ means a small 16 |
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| 80 | 80 | | business investment company that— 17 |
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| 81 | 81 | | ‘‘(A) is majority managed by new, inexperi-18 |
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| 82 | 82 | | enced, or otherwise underrepresented fund man-19 |
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| 83 | 83 | | agers; and 20 |
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| 84 | 84 | | ‘‘(B) elects and is selected by the Adminis-21 |
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| 85 | 85 | | tration to participate in the pathway-prote´ge´ 22 |
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| 86 | 86 | | program under subsection (g). 23 |
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| 87 | 87 | | ‘‘(6) S |
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| 88 | 88 | | MALL BUSINESS CONCERN .—The term 24 |
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| 89 | 89 | | ‘small business concern’ has the meaning given the 25 |
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| 91 | 91 | | kjohnson on DSK79L0C42PROD with BILLS 4 |
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| 92 | 92 | | •S 46 IS |
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| 93 | 93 | | term in section 3(a) of the Small Business Act (15 1 |
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| 94 | 94 | | U.S.C. 632(a)). 2 |
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| 95 | 95 | | ‘‘(b) E |
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| 96 | 96 | | STABLISHMENT.— 3 |
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| 97 | 97 | | ‘‘(1) F |
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| 98 | 98 | | ACILITY.—The Administrator shall estab-4 |
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| 99 | 99 | | lish and carry out a facility to increase resiliency in 5 |
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| 100 | 100 | | the manufacturing supply chain of eligible small 6 |
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| 101 | 101 | | business concerns by providing financial assistance 7 |
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| 102 | 102 | | to participating investment companies that facilitate 8 |
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| 103 | 103 | | equity financings to eligible small business concerns 9 |
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| 104 | 104 | | in accordance with this section. 10 |
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| 105 | 105 | | ‘‘(2) A |
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| 106 | 106 | | DMINISTRATION OF FACILITY .—The fa-11 |
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| 107 | 107 | | cility shall be administered by the Administrator act-12 |
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| 108 | 108 | | ing through the Associate Administrator described in 13 |
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| 109 | 109 | | section 201. 14 |
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| 110 | 110 | | ‘‘(c) A |
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| 111 | 111 | | PPLICATIONS.— 15 |
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| 112 | 112 | | ‘‘(1) I |
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| 113 | 113 | | N GENERAL.—Any small business invest-16 |
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| 114 | 114 | | ment company may submit to the Administrator an 17 |
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| 115 | 115 | | application to participate in the facility. 18 |
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| 116 | 116 | | ‘‘(2) R |
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| 117 | 117 | | EQUIREMENTS FOR APPLICATION .—An 19 |
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| 118 | 118 | | application to participate in the facility shall include 20 |
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| 119 | 119 | | the following: 21 |
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| 120 | 120 | | ‘‘(A) A business plan describing how the 22 |
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| 121 | 121 | | applicant intends to make successful equity in-23 |
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| 122 | 122 | | vestments in eligible small business concerns. 24 |
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| 124 | 124 | | kjohnson on DSK79L0C42PROD with BILLS 5 |
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| 125 | 125 | | •S 46 IS |
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| 126 | 126 | | ‘‘(B) Information regarding the relevant 1 |
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| 127 | 127 | | investment qualifications and backgrounds of 2 |
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| 128 | 128 | | the individuals responsible for the management 3 |
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| 129 | 129 | | of the applicant. 4 |
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| 130 | 130 | | ‘‘(C) A description of the extent to which 5 |
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| 131 | 131 | | the applicant meets the selection criteria under 6 |
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| 132 | 132 | | subsection (d)(2). 7 |
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| 133 | 133 | | ‘‘(3) E |
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| 134 | 134 | | XCEPTIONS TO APPLICATION FOR NEW 8 |
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| 135 | 135 | | LICENSEES.—Not later than 90 days after the date 9 |
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| 136 | 136 | | of enactment of this section, the Administrator shall 10 |
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| 137 | 137 | | reduce requirements for applicants applying to oper-11 |
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| 138 | 138 | | ate as a participating investment company under 12 |
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| 139 | 139 | | this section in order to encourage the participation 13 |
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| 140 | 140 | | of new small business investment companies in the 14 |
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| 141 | 141 | | facility under this section, which may include the re-15 |
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| 142 | 142 | | quirements established under part 107 of title 13, 16 |
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| 143 | 143 | | Code of Federal Regulations, or any successor regu-17 |
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| 144 | 144 | | lation, relating to— 18 |
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| 145 | 145 | | ‘‘(A) the approval of initial management 19 |
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| 146 | 146 | | expenses; 20 |
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| 147 | 147 | | ‘‘(B) the management ownership diversity 21 |
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| 148 | 148 | | requirement; 22 |
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| 149 | 149 | | ‘‘(C) the disclosure of general compen-23 |
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| 150 | 150 | | satory practices and fee structures; or 24 |
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| 152 | 152 | | kjohnson on DSK79L0C42PROD with BILLS 6 |
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| 153 | 153 | | •S 46 IS |
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| 154 | 154 | | ‘‘(D) any other requirement that the Ad-1 |
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| 155 | 155 | | ministrator determines to be an obstacle to 2 |
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| 156 | 156 | | achieving the purposes described in this para-3 |
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| 157 | 157 | | graph. 4 |
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| 158 | 158 | | ‘‘(d) S |
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| 159 | 159 | | ELECTION OF PARTICIPATINGINVESTMENT 5 |
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| 160 | 160 | | C |
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| 161 | 161 | | OMPANIES.— 6 |
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| 162 | 162 | | ‘‘(1) D |
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| 163 | 163 | | ETERMINATION.— 7 |
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| 164 | 164 | | ‘‘(A) I |
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| 165 | 165 | | N GENERAL.—Except as provided in 8 |
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| 166 | 166 | | paragraph (3), not later than 60 days after the 9 |
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| 167 | 167 | | date on which the Administrator receives an ap-10 |
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| 168 | 168 | | plication under subsection (c), the Adminis-11 |
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| 169 | 169 | | trator shall— 12 |
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| 170 | 170 | | ‘‘(i) make a final determination to ap-13 |
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| 171 | 171 | | prove or disapprove such applicant to par-14 |
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| 172 | 172 | | ticipate in the facility; and 15 |
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| 173 | 173 | | ‘‘(ii) transmit the determination to the 16 |
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| 174 | 174 | | applicant in writing. 17 |
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| 175 | 175 | | ‘‘(B) C |
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| 176 | 176 | | OMMITMENT AMOUNT .—Except as 18 |
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| 177 | 177 | | provided in paragraph (3), at the time of ap-19 |
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| 178 | 178 | | proval of an applicant, the Administrator shall 20 |
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| 179 | 179 | | make a determination of the amount of the 21 |
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| 180 | 180 | | commitment that may be awarded to the appli-22 |
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| 181 | 181 | | cant under this section. 23 |
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| 183 | 183 | | kjohnson on DSK79L0C42PROD with BILLS 7 |
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| 184 | 184 | | •S 46 IS |
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| 185 | 185 | | ‘‘(2) SELECTION CRITERIA.—In making a de-1 |
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| 186 | 186 | | termination under paragraph (1), the Administrator 2 |
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| 187 | 187 | | shall consider— 3 |
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| 188 | 188 | | ‘‘(A) the probability that the investment 4 |
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| 189 | 189 | | strategy of the applicant will successfully repay 5 |
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| 190 | 190 | | any financial assistance provided by the Admin-6 |
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| 191 | 191 | | istration, including the probability of a return 7 |
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| 192 | 192 | | significantly in excess thereof; 8 |
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| 193 | 193 | | ‘‘(B) the probability that the investments 9 |
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| 194 | 194 | | made by the applicant will— 10 |
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| 195 | 195 | | ‘‘(i) provide capital to eligible small 11 |
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| 196 | 196 | | business concerns; or 12 |
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| 197 | 197 | | ‘‘(ii) create or preserve jobs in the 13 |
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| 198 | 198 | | United States; 14 |
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| 199 | 199 | | ‘‘(C) the probability that the applicant will 15 |
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| 200 | 200 | | meet the objectives in the business plan of the 16 |
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| 201 | 201 | | applicant, including the financial goals, and, if 17 |
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| 202 | 202 | | applicable, the pathway-prote´ge´program in ac-18 |
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| 203 | 203 | | cordance with subsection (g); and 19 |
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| 204 | 204 | | ‘‘(D) the probability that the applicant will 20 |
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| 205 | 205 | | assist eligible small business concerns in achiev-21 |
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| 206 | 206 | | ing profitability. 22 |
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| 207 | 207 | | ‘‘(3) A |
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| 208 | 208 | | PPROVAL OF PARTICIPATING INVEST -23 |
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| 209 | 209 | | MENT COMPANIES.— 24 |
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| 210 | 210 | | ‘‘(A) P |
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| 211 | 211 | | ROVISIONAL APPROVAL.— 25 |
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| 213 | 213 | | kjohnson on DSK79L0C42PROD with BILLS 8 |
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| 214 | 214 | | •S 46 IS |
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| 215 | 215 | | ‘‘(i) IN GENERAL.—Notwithstanding 1 |
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| 216 | 216 | | paragraph (1), with respect to an applica-2 |
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| 217 | 217 | | tion submitted by an applicant to operate 3 |
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| 218 | 218 | | as a participating investment company 4 |
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| 219 | 219 | | under this section, the Administrator may 5 |
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| 220 | 220 | | provide provisional approval for the appli-6 |
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| 221 | 221 | | cant in lieu of a final determination of ap-7 |
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| 222 | 222 | | proval and determination of the amount of 8 |
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| 223 | 223 | | the commitment under that paragraph. 9 |
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| 224 | 224 | | ‘‘(ii) P |
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| 225 | 225 | | URPOSE.—The purpose of a 10 |
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| 226 | 226 | | provisional approval under clause (i) is 11 |
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| 227 | 227 | | to— 12 |
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| 228 | 228 | | ‘‘(I) encourage applications from 13 |
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| 229 | 229 | | investment companies with an invest-14 |
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| 230 | 230 | | ment mandate from the committed 15 |
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| 231 | 231 | | private market capital of the invest-16 |
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| 232 | 232 | | ment company that does not conform 17 |
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| 233 | 233 | | to the requirements described in this 18 |
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| 234 | 234 | | section at the time of application; 19 |
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| 235 | 235 | | ‘‘(II) allow the applicant to more 20 |
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| 236 | 236 | | effectively raise capital commitments 21 |
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| 237 | 237 | | in the private markets by referencing 22 |
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| 238 | 238 | | the intent of the Administrator to 23 |
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| 239 | 239 | | award the applicant a commitment; 24 |
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| 240 | 240 | | and 25 |
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| 242 | 242 | | kjohnson on DSK79L0C42PROD with BILLS 9 |
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| 243 | 243 | | •S 46 IS |
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| 244 | 244 | | ‘‘(III) allow the applicant to more 1 |
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| 245 | 245 | | precisely request the desired amount 2 |
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| 246 | 246 | | of commitment pending the securing 3 |
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| 247 | 247 | | of capital from private market inves-4 |
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| 248 | 248 | | tors. 5 |
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| 249 | 249 | | ‘‘(iii) L |
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| 250 | 250 | | IMIT ON PERIOD OF THE 6 |
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| 251 | 251 | | TIME.—The period between a provisional 7 |
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| 252 | 252 | | approval under clause (i) and the final de-8 |
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| 253 | 253 | | termination of approval under paragraph 9 |
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| 254 | 254 | | (1) shall not exceed 12 months. 10 |
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| 255 | 255 | | ‘‘(e) C |
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| 256 | 256 | | OMMITMENTS AND SBIC BONDS.— 11 |
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| 257 | 257 | | ‘‘(1) I |
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| 258 | 258 | | N GENERAL.—The Administrator may, 12 |
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| 259 | 259 | | out of amounts available in the Fund, purchase or 13 |
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| 260 | 260 | | commit to purchase from a participating investment 14 |
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| 261 | 261 | | company 1 or more accruing bonds that include eq-15 |
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| 262 | 262 | | uity features as described in this subsection. 16 |
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| 263 | 263 | | ‘‘(2) B |
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| 264 | 264 | | OND TERMS.—A bond purchased by the 17 |
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| 265 | 265 | | Administrator from a participating investment com-18 |
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| 266 | 266 | | pany under this subsection shall have the following 19 |
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| 267 | 267 | | terms and conditions: 20 |
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| 268 | 268 | | ‘‘(A) T |
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| 269 | 269 | | ERM AND INTEREST.— 21 |
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| 270 | 270 | | ‘‘(i) I |
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| 271 | 271 | | N GENERAL.—The bond shall be 22 |
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| 272 | 272 | | issued for a term of not less than 15 years 23 |
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| 273 | 273 | | and shall bear interest at a rate deter-24 |
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| 275 | 275 | | kjohnson on DSK79L0C42PROD with BILLS 10 |
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| 276 | 276 | | •S 46 IS |
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| 277 | 277 | | mined by the Administrator of not more 1 |
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| 278 | 278 | | than 2 percent. 2 |
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| 279 | 279 | | ‘‘(ii) A |
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| 280 | 280 | | CCRUAL OF INTEREST .—Inter-3 |
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| 281 | 281 | | est on the bond shall accrue and shall be 4 |
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| 282 | 282 | | payable in accordance with subparagraph 5 |
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| 283 | 283 | | (D). 6 |
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| 284 | 284 | | ‘‘(iii) P |
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| 285 | 285 | | REPAYMENT.—The bond shall 7 |
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| 286 | 286 | | be prepayable without penalty after the 8 |
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| 287 | 287 | | end of the 1-year period beginning on the 9 |
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| 288 | 288 | | date on which the bond was purchased. 10 |
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| 289 | 289 | | ‘‘(B) P |
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| 290 | 290 | | ROFITS.— 11 |
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| 291 | 291 | | ‘‘(i) I |
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| 292 | 292 | | N GENERAL.—The Administra-12 |
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| 293 | 293 | | tion shall be entitled to receive a share of 13 |
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| 294 | 294 | | the profits net of any profit sharing per-14 |
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| 295 | 295 | | formance compensation of the participating 15 |
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| 296 | 296 | | investment company equal to the quotient 16 |
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| 297 | 297 | | obtained by dividing— 17 |
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| 298 | 298 | | ‘‘(I) one-third of the commitment 18 |
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| 299 | 299 | | that the participating investment com-19 |
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| 300 | 300 | | pany is approved for under subsection 20 |
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| 301 | 301 | | (d); by 21 |
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| 302 | 302 | | ‘‘(II) the commitment approved 22 |
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| 303 | 303 | | under subsection (d) plus the regu-23 |
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| 304 | 304 | | latory capital of the participating in-24 |
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| 306 | 306 | | kjohnson on DSK79L0C42PROD with BILLS 11 |
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| 307 | 307 | | •S 46 IS |
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| 308 | 308 | | vestment company at the time of ap-1 |
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| 309 | 309 | | proval under that subsection. 2 |
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| 310 | 310 | | ‘‘(ii) D |
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| 311 | 311 | | ETERMINATION OF PERCENT -3 |
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| 312 | 312 | | AGE.—The share to which the Administra-4 |
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| 313 | 313 | | tion is entitled under clause (i)— 5 |
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| 314 | 314 | | ‘‘(I) shall be determined at the 6 |
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| 315 | 315 | | time of approval under subsection (d); 7 |
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| 316 | 316 | | and 8 |
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| 317 | 317 | | ‘‘(II) without the approval of the 9 |
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| 318 | 318 | | Administration, shall not be revised, 10 |
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| 319 | 319 | | including to reflect subsequent dis-11 |
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| 320 | 320 | | tributions of profits, returns of cap-12 |
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| 321 | 321 | | ital, or repayments of bonds, or other-13 |
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| 322 | 322 | | wise. 14 |
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| 323 | 323 | | ‘‘(C) P |
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| 324 | 324 | | ROFIT SHARING PERFORMANCE 15 |
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| 325 | 325 | | COMPENSATION.— 16 |
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| 326 | 326 | | ‘‘(i) R |
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| 327 | 327 | | ECEIPT BY ADMINISTRATION .— 17 |
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| 328 | 328 | | The Administration shall receive a share of 18 |
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| 329 | 329 | | profits of not more than 2 percent, which 19 |
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| 330 | 330 | | shall be deposited into the Fund and be 20 |
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| 331 | 331 | | available to make commitments under this 21 |
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| 332 | 332 | | subsection. 22 |
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| 333 | 333 | | ‘‘(ii) R |
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| 334 | 334 | | ECEIPT BY MANAGERS .—The 23 |
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| 335 | 335 | | managers of the participating investment 24 |
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| 336 | 336 | | company may receive a maximum profit 25 |
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| 338 | 338 | | kjohnson on DSK79L0C42PROD with BILLS 12 |
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| 339 | 339 | | •S 46 IS |
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| 340 | 340 | | sharing performance compensation of 25 1 |
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| 341 | 341 | | percent minus the share of profits paid to 2 |
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| 342 | 342 | | the Administration under clause (i). 3 |
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| 343 | 343 | | ‘‘(D) P |
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| 344 | 344 | | ROHIBITION ON DISTRIBUTIONS .— 4 |
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| 345 | 345 | | No distributions on capital, including profit dis-5 |
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| 346 | 346 | | tributions, shall be made by the participating 6 |
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| 347 | 347 | | investment company to the investors or man-7 |
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| 348 | 348 | | agers of the participating investment company 8 |
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| 349 | 349 | | until the Administration has received payment 9 |
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| 350 | 350 | | of all accrued interest on the bond committed 10 |
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| 351 | 351 | | under this section. 11 |
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| 352 | 352 | | ‘‘(E) R |
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| 353 | 353 | | EPAYMENT OF PRINCIPAL .—Except 12 |
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| 354 | 354 | | as described in subparagraph (F), repayments 13 |
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| 355 | 355 | | of principal of the bond of a participating in-14 |
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| 356 | 356 | | vestment company shall be— 15 |
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| 357 | 357 | | ‘‘(i) made at the same time as returns 16 |
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| 358 | 358 | | of private capital; and 17 |
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| 359 | 359 | | ‘‘(ii) in amounts equal to the pro rata 18 |
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| 360 | 360 | | share of the Administration of the total 19 |
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| 361 | 361 | | amount being repaid or returned at such 20 |
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| 362 | 362 | | time. 21 |
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| 363 | 363 | | ‘‘(F) L |
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| 364 | 364 | | IQUIDATION OR DEFAULT .—Upon 22 |
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| 365 | 365 | | any liquidation event or default, as defined by 23 |
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| 366 | 366 | | the Administration, any unpaid principal or ac-24 |
|---|
| 367 | 367 | | crued interest on the bond shall— 25 |
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| 369 | 369 | | kjohnson on DSK79L0C42PROD with BILLS 13 |
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| 370 | 370 | | •S 46 IS |
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| 371 | 371 | | ‘‘(i) have a priority over all equity of 1 |
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| 372 | 372 | | the participating investment company; and 2 |
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| 373 | 373 | | ‘‘(ii) be paid before any return of eq-3 |
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| 374 | 374 | | uity or any other distributions to the inves-4 |
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| 375 | 375 | | tors or managers of the participating in-5 |
|---|
| 376 | 376 | | vestment company. 6 |
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| 377 | 377 | | ‘‘(3) A |
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| 378 | 378 | | MOUNT OF COMMITMENTS AND PUR -7 |
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| 379 | 379 | | CHASES.— 8 |
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| 380 | 380 | | ‘‘(A) M |
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| 381 | 381 | | AXIMUM AMOUNT .—The maximum 9 |
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| 382 | 382 | | amount of outstanding bonds and commitments 10 |
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| 383 | 383 | | to purchase bonds for any participating invest-11 |
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| 384 | 384 | | ment company under the facility shall be the 12 |
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| 385 | 385 | | lesser of— 13 |
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| 386 | 386 | | ‘‘(i) twice the amount of the regu-14 |
|---|
| 387 | 387 | | latory capital of the participating invest-15 |
|---|
| 388 | 388 | | ment company; or 16 |
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| 389 | 389 | | ‘‘(ii) $200,000,000. 17 |
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| 390 | 390 | | ‘‘(4) C |
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| 391 | 391 | | OMMITMENT PROCESS .—Commitments by 18 |
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| 392 | 392 | | the Administration to purchase bonds under the fa-19 |
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| 393 | 393 | | cility shall remain available to be sold by a partici-20 |
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| 394 | 394 | | pating investment company until the end of the 21 |
|---|
| 395 | 395 | | fourth fiscal year following the year in which the 22 |
|---|
| 396 | 396 | | commitment is made, subject to review and approval 23 |
|---|
| 397 | 397 | | by the Administration based on regulatory compli-24 |
|---|
| 398 | 398 | | ance, financial status, change in management, devi-25 |
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| 399 | 399 | | VerDate Sep 11 2014 03:36 Jan 28, 2023 Jkt 039200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\S46.IS S46 |
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| 400 | 400 | | kjohnson on DSK79L0C42PROD with BILLS 14 |
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| 401 | 401 | | •S 46 IS |
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| 402 | 402 | | ation from business plan, and such other limitations 1 |
|---|
| 403 | 403 | | as may be determined by the Administration by reg-2 |
|---|
| 404 | 404 | | ulation or otherwise. 3 |
|---|
| 405 | 405 | | ‘‘(5) C |
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| 406 | 406 | | OMMITMENT CONDITIONS .— 4 |
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| 407 | 407 | | ‘‘(A) I |
|---|
| 408 | 408 | | N GENERAL.—As a condition of re-5 |
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| 409 | 409 | | ceiving a commitment under the facility, not 6 |
|---|
| 410 | 410 | | less than 50 percent of amounts invested by the 7 |
|---|
| 411 | 411 | | participating investment company shall be in-8 |
|---|
| 412 | 412 | | vested in eligible small business concerns. 9 |
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| 413 | 413 | | ‘‘(B) E |
|---|
| 414 | 414 | | XAMINATIONS.—In addition to the 10 |
|---|
| 415 | 415 | | matters set forth in section 310(c), the Admin-11 |
|---|
| 416 | 416 | | istration shall examine each participating in-12 |
|---|
| 417 | 417 | | vestment company in such detail so as to deter-13 |
|---|
| 418 | 418 | | mine whether the participating investment com-14 |
|---|
| 419 | 419 | | pany has complied with the requirements under 15 |
|---|
| 420 | 420 | | this subsection. 16 |
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| 421 | 421 | | ‘‘(f) D |
|---|
| 422 | 422 | | ISTRIBUTIONS ANDFEES.— 17 |
|---|
| 423 | 423 | | ‘‘(1) D |
|---|
| 424 | 424 | | ISTRIBUTION REQUIREMENTS .— 18 |
|---|
| 425 | 425 | | ‘‘(A) D |
|---|
| 426 | 426 | | ISTRIBUTIONS.—As a condition of 19 |
|---|
| 427 | 427 | | receiving a commitment under the facility, a 20 |
|---|
| 428 | 428 | | participating investment company shall make 21 |
|---|
| 429 | 429 | | all distributions to the Administrator in the 22 |
|---|
| 430 | 430 | | same form and in a manner as are made to in-23 |
|---|
| 431 | 431 | | vestors, or otherwise at a time and in a manner 24 |
|---|
| 432 | 432 | | VerDate Sep 11 2014 03:36 Jan 28, 2023 Jkt 039200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\S46.IS S46 |
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| 433 | 433 | | kjohnson on DSK79L0C42PROD with BILLS 15 |
|---|
| 434 | 434 | | •S 46 IS |
|---|
| 435 | 435 | | consistent with regulations or policies of the 1 |
|---|
| 436 | 436 | | Administration. 2 |
|---|
| 437 | 437 | | ‘‘(B) A |
|---|
| 438 | 438 | | LLOCATIONS.—A participating in-3 |
|---|
| 439 | 439 | | vestment company shall make allocations of in-4 |
|---|
| 440 | 440 | | come, gain, loss, deduction, and credit to the 5 |
|---|
| 441 | 441 | | Administrator with respect to any outstanding 6 |
|---|
| 442 | 442 | | bonds as if the Administrator were an investor. 7 |
|---|
| 443 | 443 | | ‘‘(2) F |
|---|
| 444 | 444 | | EES.—The Administrator may not 8 |
|---|
| 445 | 445 | | charge fees for participating investment companies 9 |
|---|
| 446 | 446 | | other than examination fees that are consistent with 10 |
|---|
| 447 | 447 | | the license of the participating investment company. 11 |
|---|
| 448 | 448 | | ‘‘(3) B |
|---|
| 449 | 449 | | IFURCATION.—Losses on bonds issued by 12 |
|---|
| 450 | 450 | | participating investment companies shall not be off-13 |
|---|
| 451 | 451 | | set by fees or any other charges on debenture small 14 |
|---|
| 452 | 452 | | business investment companies. 15 |
|---|
| 453 | 453 | | ‘‘(g) P |
|---|
| 454 | 454 | | ROTE´GE´PROGRAM.—The Administrator shall 16 |
|---|
| 455 | 455 | | establish a pathway-prote´ge´program in which a prote´ge´ 17 |
|---|
| 456 | 456 | | investment company may receive technical assistance and 18 |
|---|
| 457 | 457 | | program support from a participating investment company 19 |
|---|
| 458 | 458 | | on a voluntary basis and without penalty for non-partici-20 |
|---|
| 459 | 459 | | pation. 21 |
|---|
| 460 | 460 | | ‘‘(h) L |
|---|
| 461 | 461 | | OSSLIMITINGFUND.— 22 |
|---|
| 462 | 462 | | ‘‘(1) I |
|---|
| 463 | 463 | | N GENERAL.—There is established in the 23 |
|---|
| 464 | 464 | | Treasury a fund for making commitments and pur-24 |
|---|
| 465 | 465 | | chasing bonds with equity features under the facility 25 |
|---|
| 466 | 466 | | VerDate Sep 11 2014 03:36 Jan 28, 2023 Jkt 039200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\S46.IS S46 |
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| 467 | 467 | | kjohnson on DSK79L0C42PROD with BILLS 16 |
|---|
| 468 | 468 | | •S 46 IS |
|---|
| 469 | 469 | | and receiving capital returned by participating in-1 |
|---|
| 470 | 470 | | vestment companies. 2 |
|---|
| 471 | 471 | | ‘‘(2) U |
|---|
| 472 | 472 | | SE OF FUNDS.—Amounts appropriated 3 |
|---|
| 473 | 473 | | to the Fund or deposited in the Fund under para-4 |
|---|
| 474 | 474 | | graph (3) shall be available to the Administrator, 5 |
|---|
| 475 | 475 | | without further appropriation, for making commit-6 |
|---|
| 476 | 476 | | ments and purchasing bonds under the facility and 7 |
|---|
| 477 | 477 | | expenses and payments, excluding administrative ex-8 |
|---|
| 478 | 478 | | penses, relating to the operations of the Adminis-9 |
|---|
| 479 | 479 | | trator under the facility. 10 |
|---|
| 480 | 480 | | ‘‘(3) D |
|---|
| 481 | 481 | | EPOSITING OF AMOUNTS .— 11 |
|---|
| 482 | 482 | | ‘‘(A) I |
|---|
| 483 | 483 | | N GENERAL.—All amounts received 12 |
|---|
| 484 | 484 | | by the Administrator from a participating in-13 |
|---|
| 485 | 485 | | vestment company relating to the facility, in-14 |
|---|
| 486 | 486 | | cluding any moneys, property, or assets derived 15 |
|---|
| 487 | 487 | | by the Administrator from operations in con-16 |
|---|
| 488 | 488 | | nection with the facility, shall be deposited in 17 |
|---|
| 489 | 489 | | the Fund. 18 |
|---|
| 490 | 490 | | ‘‘(B) P |
|---|
| 491 | 491 | | ERIOD OF AVAILABILITY.—Amounts 19 |
|---|
| 492 | 492 | | deposited under subparagraph (A) shall remain 20 |
|---|
| 493 | 493 | | available until expended. 21 |
|---|
| 494 | 494 | | ‘‘(i) A |
|---|
| 495 | 495 | | PPLICATION OFOTHERSECTIONS.—To the ex-22 |
|---|
| 496 | 496 | | tent not inconsistent with requirements under this section, 23 |
|---|
| 497 | 497 | | the Administrator may apply sections 309, 311, 312, 313, 24 |
|---|
| 498 | 498 | | and 314 to activities under this section and an officer, di-25 |
|---|
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| 500 | 500 | | kjohnson on DSK79L0C42PROD with BILLS 17 |
|---|
| 501 | 501 | | •S 46 IS |
|---|
| 502 | 502 | | rector, employee, agent, or other participant in a partici-1 |
|---|
| 503 | 503 | | pating investment company shall be subject to the require-2 |
|---|
| 504 | 504 | | ments under such sections. 3 |
|---|
| 505 | 505 | | ‘‘(j) A |
|---|
| 506 | 506 | | UTHORIZATION OF APPROPRIATIONS.—There 4 |
|---|
| 507 | 507 | | is authorized to be appropriated for the first fiscal year 5 |
|---|
| 508 | 508 | | beginning after the date of enactment of this part 6 |
|---|
| 509 | 509 | | $10,000,000,000 to carry out the facility. Amounts appro-7 |
|---|
| 510 | 510 | | priated pursuant to this subsection shall remain available 8 |
|---|
| 511 | 511 | | until the end of the second fiscal year beginning after the 9 |
|---|
| 512 | 512 | | date of enactment of this section.’’. 10 |
|---|
| 513 | 513 | | (b) A |
|---|
| 514 | 514 | | PPROVAL OFBANK-OWNED, NON-LEVERAGED 11 |
|---|
| 515 | 515 | | A |
|---|
| 516 | 516 | | PPLICANTS.—Section 301(c)(2) of the Small Business 12 |
|---|
| 517 | 517 | | Investment Act of 1958 (15 U.S.C. 681(c)(2)) is amend-13 |
|---|
| 518 | 518 | | ed— 14 |
|---|
| 519 | 519 | | (1) in subparagraph (B), in the matter pre-15 |
|---|
| 520 | 520 | | ceding clause (i), by striking ‘‘Within’’ and inserting 16 |
|---|
| 521 | 521 | | ‘‘Except as provided in subparagraph (C), within’’; 17 |
|---|
| 522 | 522 | | and 18 |
|---|
| 523 | 523 | | (2) by adding at the end the following: 19 |
|---|
| 524 | 524 | | ‘‘(C) E |
|---|
| 525 | 525 | | XCEPTION FOR BANK -OWNED, NON- 20 |
|---|
| 526 | 526 | | LEVERAGED APPLICANTS .—Notwithstanding 21 |
|---|
| 527 | 527 | | subparagraph (B), not later than 45 days after 22 |
|---|
| 528 | 528 | | the date on which the Administrator receives a 23 |
|---|
| 529 | 529 | | completed application submitted by a bank- 24 |
|---|
| 530 | 530 | | owned, non-leveraged applicant in accordance 25 |
|---|
| 531 | 531 | | VerDate Sep 11 2014 03:36 Jan 28, 2023 Jkt 039200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\S46.IS S46 |
|---|
| 532 | 532 | | kjohnson on DSK79L0C42PROD with BILLS 18 |
|---|
| 533 | 533 | | •S 46 IS |
|---|
| 534 | 534 | | with this subsection and in accordance with 1 |
|---|
| 535 | 535 | | such requirements as the Administrator may 2 |
|---|
| 536 | 536 | | prescribe by regulation, the Administrator 3 |
|---|
| 537 | 537 | | shall— 4 |
|---|
| 538 | 538 | | ‘‘(i) review the application in its en-5 |
|---|
| 539 | 539 | | tirety; and 6 |
|---|
| 540 | 540 | | ‘‘(ii)(I) approve the application and 7 |
|---|
| 541 | 541 | | issue a license for such operation to the 8 |
|---|
| 542 | 542 | | applicant if the requirements of this sec-9 |
|---|
| 543 | 543 | | tion are satisfied; or 10 |
|---|
| 544 | 544 | | ‘‘(II) disapprove the application and 11 |
|---|
| 545 | 545 | | notify the applicant in writing of the dis-12 |
|---|
| 546 | 546 | | approval.’’. 13 |
|---|
| 547 | 547 | | (c) E |
|---|
| 548 | 548 | | LECTRONICSUBMISSIONS.—Part A of title III 14 |
|---|
| 549 | 549 | | of the Small Business Investment Act of 1958 (15 U.S.C. 15 |
|---|
| 550 | 550 | | 681 et seq.), as amended by subsection (a) of this section, 16 |
|---|
| 551 | 551 | | is amended by adding at the end the following: 17 |
|---|
| 552 | 552 | | ‘‘SEC. 322. ELECTRONIC SUBMISSIONS. 18 |
|---|
| 553 | 553 | | ‘‘The Administration shall permit any document sub-19 |
|---|
| 554 | 554 | | mitted under this title, or pursuant to a regulation car-20 |
|---|
| 555 | 555 | | rying out this title, to be submitted electronically, includ-21 |
|---|
| 556 | 556 | | ing by permitting an electronic signature for any signature 22 |
|---|
| 557 | 557 | | that is required on such a document.’’. 23 |
|---|
| 558 | 558 | | Æ |
|---|
| 559 | 559 | | VerDate Sep 11 2014 03:36 Jan 28, 2023 Jkt 039200 PO 00000 Frm 00018 Fmt 6652 Sfmt 6301 E:\BILLS\S46.IS S46 |
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| 560 | 560 | | kjohnson on DSK79L0C42PROD with BILLS |
|---|