To amend the Small Business Investment Act of 1958 to improve the New Markets Venture Capital Program, and for other purposes.

Summary: Job Creation and Urban Revitalization Act of 2011 - Amends the Small Business Investment Act of 1958 to expand the new markets venture capital program (currently, a program under which venture capital companies provide equity capital investments and operational assistance to small businesses in low-income geographic areas) to areas of high unemployment. Allows the operational assistance that companies provide to small businesses in such high-unemployment areas to include retooling, updating, or replacing of machinery or equipment.

Makes the Small Business Administration (SBA) definition of "low-income geographic area" under the program the same as the definition of "low-income community" under the Internal Revenue Code, except that, without regard to such meaning, the term shall include an area of high unemployment.

Requires the SBA Administrator, in conditionally approving companies to participate in the program, to select at least one company from each SBA geographic region.

Directs the Administrator to allow conditionally-approved companies two years (currently, a period of time not to exceed two years) to satisfy capital and other requirements for final approval.

Exempts from a requirement that conditionally-approved companies have certain binding capital commitments in order to provide operational assistance, companies primarily serving small businesses in areas of: (1) high unemployment, or (2) urban manufacturing revitalization.

Authorizes the Administrator to approve a company to serve, throughout all states, solely small businesses in urban manufacturing revitalization areas.

Reduces to $3 million the minimum capital requirements for final approval of conditionally-approved companies engaged primarily in development of and investment in small businesses located in areas of high unemployment. Reduces to $2 million such capital requirements for conditionally-approved companies so engaged primarily with small businesses in urban manufacturing revitalization areas. (Current law would otherwise require any conditionally-approved company to raise at least $5 million.)

Revises the formula for operational assistance grants.

Authorizes such grants to conditionally-approved companies (up to $50,000 per company), provided that repayment is made if such companies do not receive final approval.

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Job Creation and 
Urban Revitalization Act of 2011''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Increased investment in job creating small business concerns.
Sec. 3. Updating definition of low-income geographic area.
Sec. 4. Expanded uses for operational assistance for small business 
                            concerns located in areas of high 
                            unemployment.
Sec. 5. Definition of area of high unemployment.
Sec. 6. Nationwide distribution of companies to generate new employment 
                            opportunities.
Sec. 7. Limitation on time for final approval.
Sec. 8. Elimination of matching requirement for areas with high 
                            unemployment and areas designated as an 
                            urban manufacturing revitalization area.
Sec. 9. Urban manufacturing revitalization areas.
Sec. 10. Simplified formula for operational assistance grants.
Sec. 11. Expanding operational assistance to conditionally approved 
                            companies.
Sec. 12. Authorization of appropriations.
Sec. 13. Streamlined application for New Markets Venture Capital 
                            Program.

SEC. 2. INCREASED INVESTMENT IN JOB CREATING SMALL BUSINESS CONCERNS.

    (a) Developmental Venture Capital and Participation Agreements.--
Section 351 of the Small Business Investment Act of 1958 (15 U.S.C. 
689) is amended--
            (1) in paragraph (1) by inserting after ``geographic 
        areas'' the following: ``or encouraging the growth or 
        continuation of small business concerns located in areas of 
        high unemployment''; and
            (2) in paragraph (6)(B) by inserting after ``geographic 
        areas'' the following: ``or in small business concerns located 
        in areas of high unemployment''.
    (b) Purposes.--Section 352 of the Small Business Investment Act of 
1958 (15 U.S.C. 689a) is amended--
            (1) by striking paragraph (1) and inserting the following:
            ``(1) to promote economic development in low-income 
        geographic areas and to create job opportunities in areas of 
        high unemployment by encouraging developmental venture capital 
        investments in smaller enterprises and small business concerns 
        primarily located in such areas; and''; and
            (2) in paragraph (2)--
                    (A) in the matter preceding subparagraph (A) by 
                inserting after ``geographic areas'' the following: 
                ``and small business concerns located in areas of high 
                unemployment'';
                    (B) in subparagraph (B) by inserting after 
                ``geographic areas'' the following: ``or in small 
                business concerns located in areas of high 
                unemployment''; and
                    (C) in subparagraph (C) by inserting after 
                ``smaller enterprises'' the following: ``and small 
                business concerns''.
    (c) Eligibility, Applications, and Requirements for Final 
Approval.--Section 354 of the Small Business Investment Act of 1958 (15 
U.S.C. 689c) is amended--
            (1) in subsection (a)(3) by inserting after ``geographic 
        areas'' the following: ``or investing in small business 
        concerns located in areas of high unemployment'';
            (2) in subsection (b)--
                    (A) in paragraph (1) by inserting after 
                ``geographic areas'' the following: ``or in small 
                business concerns located in areas of high 
                unemployment''; and
                    (B) in paragraph (4) by inserting after ``smaller 
                enterprises'' the following: ``or small business 
                concerns''; and
            (3) in subsection (d)--
                    (A) in paragraph (1)--
                            (i) by striking ``Each'' and inserting the 
                        following:
                    ``(A) In general.--Except as provided in 
                subparagraphs (B) and (C), each''; and
                            (ii) by adding at the end the following:
                    ``(B) Small business concerns located in areas of 
                high unemployment.--Each conditionally approved company 
                engaged primarily in development of and investment in 
                small business concerns located in areas of high 
                unemployment shall raise not less than $3,000,000 of 
                private capital or binding capital commitments from one 
                or more investors (other than agencies or departments 
                of the Federal Government) who met criteria established 
                by the Administrator.''; and
                    (B) in paragraph (2)(A) by inserting after 
                ``smaller enterprises'' the following: ``or small 
                business concerns''.
    (d) Operational Assistance Grants.--Section 358 of the Small 
Business Investment Act of 1958 (15 U.S.C. 689g) is amended--
            (1) in subsection (a)(1) by inserting after ``smaller 
        enterprises'' the following: ``and small business concerns''; 
        and
            (2) in subsection (b)(1) by inserting after ``smaller 
        enterprises'' the following: ``and small business concerns''.

SEC. 3. UPDATING DEFINITION OF LOW-INCOME GEOGRAPHIC AREA.

    Section 351 of the Small Business Investment Act of 1958 (15 U.S.C. 
689), as amended by section 2 of this Act, is further amended--
            (1) by striking paragraphs (2) and (3);
            (2) by inserting after paragraph (1) the following:
            ``(2) Low-income geographic area.--The term `low-income 
        geographic area' has the meaning given the term `low-income 
        community' in section 45D(e) of the Internal Revenue Code of 
        1986, except that, without regard to that meaning, the term 
        includes an area of high unemployment.''; and
            (3) by redesignating paragraphs (4) through (8) as 
        paragraphs (3) through (7), respectively.

SEC. 4. EXPANDED USES FOR OPERATIONAL ASSISTANCE FOR SMALL BUSINESS 
              CONCERNS LOCATED IN AREAS OF HIGH UNEMPLOYMENT.

    Section 351 of the Small Business Investment Act of 1958 (15 U.S.C. 
689), as amended by this Act, is further amended in paragraph (4) (as 
so redesignated by section 3 of this Act) by inserting after ``business 
development'' the following: ``and, with respect to a small business 
concern located in an area of high unemployment, assistance that 
assists the concern with retooling, updating, or replacing machinery or 
equipment''.

SEC. 5. DEFINITION OF AREA OF HIGH UNEMPLOYMENT.

    Section 351 of the Small Business Investment Act of 1958 (15 U.S.C. 
689), as amended by this Act, is further amended by adding at the end 
the following:
            ``(8) Area of high unemployment.--The term `area of high 
        unemployment' means a geographic area that the Administrator 
        determines has an unemployment rate that exceeds the national 
        unemployment rate.''.

SEC. 6. NATIONWIDE DISTRIBUTION OF COMPANIES TO GENERATE NEW EMPLOYMENT 
              OPPORTUNITIES.

    Paragraph (3) of section 354(c) of the Small Business Investment 
Act of 1958 (15 U.S.C. 689c(c)) is amended to read as follows:
            ``(3) Geographic expansion.--In selecting companies under 
        paragraph (1), the Administrator shall consider the need to 
        promote investment nationwide and shall, to the extent 
        practicable, select at least 1 company from each geographic 
        region of the Small Business Administration.''.

SEC. 7. 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 in the matter preceding paragraph (1) by 
striking ``a period of time, not to exceed 2 years,'' and inserting ``2 
years''.

SEC. 8. ELIMINATION OF MATCHING REQUIREMENT FOR AREAS WITH HIGH 
              UNEMPLOYMENT AND AREAS DESIGNATED AS AN URBAN 
              MANUFACTURING REVITALIZATION AREA.

    Section 354(d)(2)(A)(i)(III) of the Small Business Investment Act 
of 1958 (15 U.S.C. 689c(d)(2)(A)(i)(III)) is amended by inserting after 
``under paragraph (1)'' the following: ``, except that this subclause 
shall not apply to a company the Administrator determines is primarily 
serving small business concerns located in an area of high unemployment 
or in an area designated as an urban manufacturing revitalization area 
under subsection (f)''.

SEC. 9. URBAN MANUFACTURING REVITALIZATION AREAS.

    (a) In General.--Section 354 of the Small Business Investment Act 
of 1958 (15 U.S.C. 689c), as amended by this Act, is further amended by 
adding at the end the following:
    ``(f) Urban Manufacturing Revitalization Areas.--
            ``(1) In general.--In approving companies under this 
        section to participate in the New Markets Venture Capital 
        Program, the Administrator may approve a company to serve, 
        throughout all States, solely small business concerns located 
        in areas designated as an urban manufacturing revitalization 
        area under paragraph (2).
            ``(2) Designation.--For purposes of paragraph (1), the 
        Administrator may designate an area as an urban manufacturing 
        revitalization area if--
                    ``(A) the area is a low-income geographic area;
                    ``(B) the Administrator determines the area is an 
                urban area; and
                    ``(C) the Administrator determines there is, or was 
                during the preceding 10-year period, a substantial 
                presence of businesses in the area the primary business 
                of which is classified in sector 31, 32, or 33 of the 
                North American Industrial Classification System.
            ``(3) Consideration.--In approving a company under 
        paragraph (1), the Administrator shall give priority to a 
        company that demonstrates a strong commitment to and experience 
        in revitalizing and redeveloping urban areas through investment 
        in and the provision of management and technical assistance to 
        small business concerns in those areas.
            ``(4) Coordination.--The Administrator shall work to 
        coordinate and make available to small business concerns served 
        by a company approved under paragraph (1) the resources 
        provided under the entrepreneurial development, contracting, 
        and financing programs of the Administration.
            ``(5) Increasing procurement opportunities.--The 
        Administrator shall designate at least 1 procurement center 
        representative or commercial market representative to identify 
        procurement opportunities for small business concerns served by 
        a company approved under paragraph (1).''.
    (b) Capital Requirement.--Section 354(d)(1) of the Small Business 
Investment Act of 1958 (15 U.S.C. 689c(d)(1)) is amended by adding at 
the end the following:
                    ``(C) Small business concerns located in urban 
                manufacturing revitalization areas.--Each conditionally 
                approved company engaged primarily in development of 
                and investment in small business concerns located in 
                areas designated as urban manufacturing revitalization 
                areas under subsection (f) shall raise not less than 
                $2,000,000 of private capital or binding capital 
                commitments from one or more investors (other than 
                agencies or departments of the Federal Government) who 
                met criteria established by the Administrator.''.

SEC. 10. SIMPLIFIED FORMULA FOR OPERATIONAL ASSISTANCE GRANTS.

    Subparagraph (A) of section 358(a)(4) of the Small Business 
Investment Act of 1958 (15 U.S.C. 689g(a)(4)) is amended--
            (1) by striking ``shall be equal to'' and all that follows 
        through the period at the end and 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
                            ``(ii) $1,000,000.''.

SEC. 11. EXPANDING OPERATIONAL ASSISTANCE TO CONDITIONALLY APPROVED 
              COMPANIES.

    Section 358(a) of the Small Business Investment Act of 1958 (15 
U.S.C. 689g(a)) is amended by adding at the end the following:
            ``(6) Grants to conditionally approved companies.--
                    ``(A) In general.--Subject to the provisions of 
                this paragraph, upon the request of a company 
                conditionally approved under section 354(c), the 
                Administrator is authorized to make a grant to the 
                company under this subsection.
                    ``(B) Repayment by companies not approved.--If a 
                company receives a grant under this paragraph and does 
                not receive final approval under section 354(e), 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 this paragraph and 
                receives final approval under section 354(e), the 
                Administrator shall deduct the amount of such grant 
                from the amount of any immediately succeeding grant the 
                company receives for operational assistance.
                    ``(D) Amount of grant.--No company may receive a 
                grant of more than $50,000 under this paragraph.''.

SEC. 12. AUTHORIZATION OF APPROPRIATIONS.

    Section 368(a) of the Small Business Investment Act of 1958 (15 
U.S.C. 689q(a)) is amended--
            (1) in the matter preceding paragraph (1) by striking 
        ``fiscal years 2001 through 2006'' and inserting ``fiscal years 
        2012 and 2013'';
            (2) in paragraph (1)--
                    (A) by striking ``$150,000,000'' and inserting 
                ``$75,000,000''; and
                    (B) by inserting before the period at the end the 
                following: ``, of which not less than 50 percent shall 
                be used to guarantee debentures of companies primarily 
                serving small business concerns located in areas of 
                high unemployment''; and
            (3) in paragraph (2)--
                    (A) by striking ``$30,000,000'' and inserting 
                ``$15,000,000''; and
                    (B) by inserting before the period at the end the 
                following: ``, of which not less than 50 percent shall 
                be used to make grants to companies primarily serving 
                small business concerns located in areas of high 
                unemployment''.

SEC. 13. STREAMLINED APPLICATION FOR NEW MARKETS VENTURE CAPITAL 
              PROGRAM.

    Not later than 60 days after the date of enactment of this Act, the 
Administrator of the Small Business Administration shall prescribe 
standard documents for a New Markets Venture Capital company final 
approval application with respect to section 354(e) of the Small 
Business Investment Act of 1958 (15 U.S.C. 689c(e)). The Administrator 
shall ensure that the standard documents are designed to substantially 
reduce the cost burden of the application process for companies.