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38–204 PDF 2007

FULL COMMITTEE MARKUP OF HR. 3567,

THE SMALL BUSINESS INVESTMENT

EXPANSION ACT OF 2007

COMMITTEE ON SMALL BUSINESS 

UNITED STATES HOUSE OF 

REPRESENTATIVES

ONE HUNDRED TENTH CONGRESS

FIRST SESSION

SEPTEMBER 20, 2007

Serial Number 110-46

Printed for the use of the Committee on Small Business

(

Available via the World Wide Web: http://www.access.gpo.gov/congress/house 

HOUSE COMMITTEE ON SMALL BUSINESS 

NYDIA M. VELA ́ ZQUEZ, New York, Chairwoman 

HEATH SHULER, North Carolina 

CHARLIE GONZA ́ LEZ, Texas 

RICK LARSEN, Washington 

RAUL GRIJALVA, Arizona 

MICHAEL MICHAUD, Maine 

MELISSA BEAN, Illinois 

HENRY CUELLAR, Texas 

DAN LIPINSKI, Illinois 

GWEN MOORE, Wisconsin 

JASON ALTMIRE, Pennsylvania 

BRUCE BRALEY, Iowa 

YVETTE CLARKE, New York 

BRAD ELLSWORTH, Indiana 

HANK JOHNSON, Georgia 

JOE SESTAK, Pennsylvania 

STEVE CHABOT, Ohio, Ranking Member 

ROSCOE BARTLETT, Maryland 

SAM GRAVES, Missouri 

TODD AKIN, Missouri 

BILL SHUSTER, Pennsylvania 

MARILYN MUSGRAVE, Colorado 

STEVE KING, Iowa 

JEFF FORTENBERRY, Nebraska 

LYNN WESTMORELAND, Georgia 

LOUIE GOHMERT, Texas 

DEAN HELLER, Nevada 

DAVID DAVIS, Tennessee 

MARY FALLIN, Oklahoma 

VERN BUCHANAN, Florida 

JIM JORDAN, Ohio 

MICHAEL DAY, Majority Staff Director 

ADAM MINEHARDT, Deputy Staff Director 

TIM SLATTERY, Chief Counsel 

KEVIN FITZPATRICK, Minority Staff Director

STANDING SUBCOMMITTEES 

Subcommittee on Finance and Tax

MELISSA BEAN, Illinois, Chairwoman 

RAUL GRIJALVA, Arizona 

MICHAEL MICHAUD, Maine 

BRAD ELLSWORTH, Indiana 

HANK JOHNSON, Georgia 

JOE SESTAK, Pennsylvania 

DEAN HELLER, Nevada, Ranking 

BILL SHUSTER, Pennsylvania 

STEVE KING, Iowa 

VERN BUCHANAN, Florida 

JIM JORDAN, Ohio

Subcommittee on Contracting and Technology

BRUCE BRALEY, IOWA, Chairman 

HENRY CUELLAR, Texas 

GWEN MOORE, Wisconsin 

YVETTE CLARKE, New York 

JOE SESTAK, Pennsylvania 

DAVID DAVIS, Tennessee, Ranking 

ROSCOE BARTLETT, Maryland 

SAM GRAVES, Missouri 

TODD AKIN, Missouri 

MARY FALLIN, Oklahoma

(II) 

Subcommittee on Regulations, Health Care and Trade

CHARLES GONZA ́ LEZ, Texas, Chairman 

RICK LARSEN, Washington 

DAN LIPINSKI, Illinois 

MELISSA BEAN, Illinois 

GWEN MOORE, Wisconsin 

JASON ALTMIRE, Pennsylvania 

JOE SESTAK, Pennsylvania 

LYNN WESTMORELAND, Georgia, Ranking 

BILL SHUSTER, Pennsylvania 

STEVE KING, Iowa 

MARILYN MUSGRAVE, Colorado 

MARY FALLIN, Oklahoma 

VERN BUCHANAN, Florida 

JIM JORDAN, Ohio

Subcommittee on Urban and Rural Entrepreneurship

HEATH SHULER, North Carolina, Chairman 

RICK LARSEN, Washington 

MICHAEL MICHAUD, Maine 

GWEN MOORE, Wisconsin 

YVETTE CLARKE, New York 

BRAD ELLSWORTH, Indiana 

HANK JOHNSON, Georgia 

JEFF FORTENBERRY, Nebraska, Ranking 

ROSCOE BARTLETT, Maryland 

MARILYN MUSGRAVE, Colorado 

DEAN HELLER, Nevada 

DAVID DAVIS, Tennessee

Subcommittee on Investigations and Oversight

JASON ALTMIRE, PENNSYLVANIA, Chairman 

CHARLIE GONZA ́ LEZ, Texas 

RAUL GRIJALVA, Arizona 

LOUIE GOHMERT, Texas, Ranking 

LYNN WESTMORELAND, Georgia

(III) 

C O N T E N T S 

OPENING STATEMENTS 

Page

Vela ́zquez, Hon. Nydia M. ....................................................................................... 1

Chabot, Hon. Steve .................................................................................................. 2

Altmire, Hon. Jason ................................................................................................. 4

Graves, Hon. Sam .................................................................................................... 5

APPENDIX 

Prepared Statements: 

Vela ́zquez, Hon. Nydia M. ....................................................................................... 10

Chabot, Hon. Steve .................................................................................................. 12

Altmire, Hon. Jason ................................................................................................. 13

(V) 

(1)

FULL COMITTEE MARKUP OF H.R. 3567, 

THE SMALL BUSINESS INVESTMENT 

EXPANSION ACT OF 2007

Thursday, September 20, 2007

U.S. HOUSE OF REPRESENTATIVES, 

COMMITTEE ON SMALL BUSINESS, 

Washington, DC. 

The Committee met, pursuant to call, at 10:00 a.m., inRoom 

2360, Rayburn House Office Building, Hon. Nydia M. Vela ́zquez 

[Chairwoman of the Committee] Presiding. 

Present: Representatives Vela ́zquez, Shuler, Gonza ́lez, Grijalva, 

Michaud, Cuellar, Lipinski, Moore, Altmire, Braley, Clarke, Ellsworth, Sestak, Chabot, Bartlett, Graves, Akin, Musgrave, Westmoreland, Heller, Davis, Fallin, Buchanan, and Jordan. 

OPENING STATEMENT OF CHAIRWOMAN VELA ́ ZQUEZ 

Chairwoman VELA ́ ZQUEZ. I am pleased to call this morning’s 

markup to order. In today’s markup the Committee will address 

issues to strengthen and update the SBA’s venture capital programs. Perhaps none of the SBA directives have proven more important than the investment mission, because without this vital resource, no business can grow. Would it not be for SBA’s access to 

the capital programs, many of our Nation’s leading companies 

would have never become as successful as they are today. Apple, 

Costco, Federal Express and Intel are just a few of the companies 

that have benefited from the SBA’s investment programs. 

For the SBA’s investment mission to have continued success, 

however, it will be vital that the agency’s programs be updated and 

simplified to meet the growing economic challenges they were originally intended to address. Over the past 5 years the amount of venture capital going to startup small businesses under the SBA’s flagship equity investment program, the SBAC program, has steadily 

declined. This has not only limited the ability of small businesses 

to expand and grow but also has hindered their ability to generate 

innovative new ideas and new products. Almost equally troubling 

has been the decline in the SBA’s ability to provide equity capital 

for specially and economically disadvantaged small businesses. 

Without funding, however, the New Markets Venture Capital 

program has lacked the resources to license new venture capital 

companies or expand into new low-income communities. In its brief 

history, however, the New Markets program, has proven its potential to develop vibrant small businesses that can dramatically improve the economic conditions in low-income communities. Most noVerDate 0ct 09 2002 18:18 Jan 22, 2008 Jkt 033615 PO 00000 Frm 00007 Fmt 6633 Sfmt 6633 G:\CLERK SB\HEARINGS\TRANSCRIPTS\38204.TXT LEANN
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tably, the SBA has continued to apply outdated and unreasonable 

affiliation policies against venture capital companies and has effectively stifled the free flow of venture capital to small businesses. 

These policies are not only inconsistent with the affiliation rules 

that the agency follows in other contexts, but are also unreasonable. These policies impede the flow of venture capital to small 

businesses for minimal benefit. 

The Small Business Investment Expansion Act that we will mark 

up today is an important step toward reversing these problems. 

This legislation will renew our commitment toward small business investment by providing much-needed simplifications to the 

SBAC and New Markets programs. A new Angel investment program will be established to fill the gap in seed capital that was created by the elimination of the participating securities program. The 

bill also features a renewed focus on providing equity capital to 

businesses in low-income areas and minority-owned businesses, 

two key sectors of the small business community that have continued to face particularly high barriers to securing venture capital. 

Small businesses deserve our efforts to listen to their problems 

and remove barriers. Such cooperation is good for all of us because 

these businesses are the most innovative that create the new jobs 

and produce half of our income. They deserve our best efforts. 

As this country continues to rely on entrepreneurs to spur economic development and create jobs, the need for venture capital 

will only continue to grow. Once again, this Committee is demonstrating the strengths that come from working in a bipartisan 

manner. In particular, I would like to thank Ranking Member 

Chabot and his staff for their efforts to work with us on this bill. 

I would also like to thank Mr. Altmire who, with Mr. Graves from 

Missouri, introduced the Small Business Investment Expansion Act 

of 2007. Their contributions were and continue to be essential to 

this legislation’s success. 

And now I would like to yield to Ranking Member Mr. Chabot 

for his opening statements. 

OPENING STATEMENT OF MR. CHABOT 

Mr. CHABOT. Thank you, Madam Chair. I would first of all like 

to thank members on both sides of the aisle for their attendance 

here this morning. I understand this probably won’t take too long. 

But the bill being considered today has many improvements to the 

program authorized by the Small Business Investment Act of 1958. 

In addition, the bill under the leadership of Chairwoman Vela ́zquez 

also incorporates an effort to focus equity investment on small 

startup businesses, those that may eventually turn into the next 

Nike or Federal Express or Dell computer. 

The bill makes important technical changes to the small business 

investment company program. These changes, as we heard in testimony, will make the program more transparent to potential investors, and therefore increase participation in a valuable program. 

I would also like to thank the Chair for incorporating a number 

of very important changes to the New Markets Venture Capital 

program. These companies will help revitalize poor urban and rural 

areas, including areas, for example, in the district that I happen 

3

to represent in Cincinnati, which has a number of areas that do 

need improvement, that need new enterprise. 

I look forward to working with all members of the Committee on 

both sides to ensure the success of this program. 

The bill before us takes an interesting approach, similar to the 

one in the SBIC program, to provide incentives to provide equity 

to the newest of small businesses. I think the approach in this bill 

adopts the correct balance between providing incentives while reducing risk to the government and risk to the taxpayer. I would 

simply note that the Committee should be ready to make midcourse corrections if economic conditions necessitate it. 

The SBA’s surety bond program provides an important tool that 

enables small government contractors to compete against much 

larger businesses that have no problem finding surety bonds. The 

amendments in this bill, albeit modest, will improve participation 

in the program by bond underwriters. This ultimately benefits the 

American public, who will benefit from greater competition among 

Federal Government contractors. 

The same cannot be said, unfortunately, for the final substantive 

provision in the bill Title V. It is important that my reservations 

be explained in some detail. Title V provides that a venture capital 

company owns one or more of the companies that it has provided 

equity to will not be deemed to be affiliated with this company or 

any other company it owns. In other words, as long as every company that it owns is small, the venture capital company remains 

small. Thus, a venture capital company can own dozens, if not 

more, companies and then bid on a government contract, using any 

or all of its subsidiaries to perform the work and still be considered 

a small business. 

Thus, a small venture capital company could be a very large defense contractor, for example, competing against much smaller 

businesses. I do not see how this benefits small businesses or increases competition among Federal Government contractors. I do 

believe that it will provide an opportunity for venture capital companies to become holding companies for small government contractors. I believe that Title V’s effort to resolve a narrow interpretation of SBA’s size standards is akin to destroying an ant hill with 

a thermonuclear device. For this reason, I have significant reservations about that portion of the bill. Despite this, I would vote to report the bill out of the Committee. 

Chairwoman VELA ́ ZQUEZ. Will the gentleman yield? 

Mr. CHABOT. I will yield. 

Chairwoman VELA ́ ZQUEZ. You have my commitment to continue 

to work with you to find a solution to the problem. 

Mr. CHABOT. I greatly appreciate that. And reclaiming my time, 

that is essentially what I was going to indicate, that I do intend 

to vote for the bill because the Chairwoman and her staff have 

promised to ameliorate the concerns that many of us have about 

those portions of the bill that I just mentioned in its current form 

as the bill moves through the legislative process. With that promise 

and the significant changes that the bill makes in other areas, I 

think it is important to move the legislative process forward in a 

bipartisan effort to assist America’s small businesses. 

4

And before yielding back, I think it is important to note that although there is substantial disagreement with the approach taken 

in the bill on some of those issues that I just mentioned, the Chairwoman should be commended for her efforts to maintain comity 

and work in a bipartisan effort to address the serious concerns that 

have been expressed about the bill. And I look forward to working 

with the Chair as the legislative process moves forward. 

Again, I would urge my colleagues to support this, although everyone obviously has to make their own decision on both sides on 

that. 

And I yield back the balance of my time.

Chairwoman VELA ́ ZQUEZ. Thank you. I would now like to recognize one of the lead sponsors of the legislation, the Chair of the Investigations and Oversight Subcommittee, Mr. Altmire, for his 

statement and explanation of the legislation. 

OPENING STATEMENT OF MR. ALTMIRE 

Mr. ALTMIRE. Thank you, Chairwoman Vela ́zquez and Ranking 

Member Chabot, for your leadership and the opportunity to work 

with you and the Committee staff to draft this critically important 

legislation for our Nation’s small businesses. 

I would also like to recognize the enormous contributions of Representative Graves and thank him for his support and the key part 

he played in moving this bill forward. 

The Small Business Administration’s investment programs have 

fallen short in addressing the capital needs of small businesses, resulting in nearly $60 billion in unmet capital needs for small businesses each year. 

This week I introduced the Small Business Investment Expansion Act to address many of the challenges our Nation’s small businesses face when trying to obtain investment capital. This bill will 

connect small businesses with the capital investment necessary to 

start and grow their operations. Through this legislation, we can 

provide the financial assistance small firms need by making the 

SBA a partner in their business development and by improving access to venture capital and Angel investments. 

The Small Business Investment Expansion Act addresses the 

current shortfall in capital investment by revamping the SBA’s 

Small Business Investment Company, SBIC, and the New Markets 

Venture Capital programs, NMVC. Both are public-private partnerships designed to aid small firms, in particular those owned by veterans, women and minorities. 

In acquiring venture capital, the bill also creates a new Office of 

Angel Investment to build the first-ever nationwide network of 

Angel groups and enhance awareness about the available investment opportunities. Angel investors are high net worth individuals 

who invest in and support startup companies. It is estimated that 

Angel investors account for more than 51,000 entrepreneurial ventures each year and are rapidly becoming a common way for 

startups to obtain capital. 

Additionally, the act will ensure firms that receive venture capital are able to maintain their small business classification, removing current disincentives to seeking this kind of financing. Small 

5

businesses are the backbone of our economy, and the Federal Government must do more to connect them with the capital investment 

required for them to succeed. 

My bill is necessary to improve SBA’s current investment programs, facilitate links to Angel networks and create an environment in which small businesses go from startup to success. I urge 

all Committee members to support this bill. 

And again, I want to thank Chairwoman Vela ́zquez, the Ranking 

Member and Representative Graves for your leadership.

Chairwoman VELA ́ ZQUEZ. I would now like to recognize the lead 

cosponsor of this legislation, Mr. Graves, for his statement on the 

legislation. 

OPENING STATEMENT OF MR. GRAVES 

Mr. GRAVES. Thank you, Madam Chairwoman. Chairwoman 

Vela ́zquez, Ranking Member Chabot, I appreciate all that you have 

done and allowing me an opportunity to speak. 

Let me start by saying this truly has been a bipartisan effort, 

and I appreciate all the Committee has done on my behalf on this 

bill. It has been a work in progress, and I am glad that everyone 

was able to get their concerns addressed. I hope we can continue 

to work on it, and I obviously think we will, in a bipartisan fashion, 

as this bill moves forward on the House floor. 

Investments in our small businesses are important to their 

growth and sustainability. The bill reauthorizes and establishes 

several programs, and directly investing in those businesses creates so many jobs in this country. Through this bill we should see 

increased investment in veteran, minority and women-owned small 

businesses plus investments in low-income communities and for the 

small manufacturing companies. 

Title V of this bill, which deals with SBA affiliation rules, has 

been an issue that has been of concern to me for a long, long time. 

Private investments in small businesses are a good thing and 

should be encouraged and not discouraged. The language will exclude employees of these private investors when determining the 

size of the small businesses, thus allowing them continued access 

to important programs under the SBA. The SBA has a number of 

programs that have proven vital to small business success, and I 

want to ensure our small businesses have continued access to 

them. 

Again, thank you for bringing this important issue before us. It 

is very important to me and my constituents, and I look forward 

to its passage. And I particularly thank Representative Altmire for 

working with me on this.

Chairwoman VELA ́ ZQUEZ. Thank you. Are there any other members that wish to be recognized on the legislation? The Committee 

now moves to consideration of the bill H.R. 35—

Ms. MOORE. Madam Chair, I do have an amendment. 

Chairwoman VELA ́ ZQUEZ. It is not—no. We need to report the 

title of the bill, and we haven’t—

Ms. MOORE. I just want to make sure that you remember. Thank 

you. 

6

Chairwoman VELA ́ ZQUEZ. The Committee now moves to consideration of the bill H.R. 3567. The Clerk will report the title of the 

bill. 

The CLERK. H.R. 3567, a bill to amend the Small Business Investment Act of 1958 to expand opportunities for investments in 

small businesses 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; Table of Contents. 

Chairwoman VELA ́ ZQUEZ. I ask unanimous consent for the bill to 

be considered as read. Without objection.

Chairwoman VELA ́ ZQUEZ. Does any member seek recognition for 

the purpose of offering an amendment? The gentlelady from Wisconsin is recognized. 

Ms. MOORE. Thank you so much, Madam Chair. 

Chairwoman VELA ́ ZQUEZ. The Clerk will report the amendment. 

The CLERK. Amendment to H.R. 3567, offered by Ms. Moore of 

Wisconsin. 

Chairwoman VELA ́ ZQUEZ. I ask unanimous consent that the 

amendment be considered as read. 

The gentlewoman is recognized. 

Ms. MOORE. Thank you so much, Madam Chair and Ranking 

Member. And we do want to thank the prime sponsors, Mr. Altmire 

and Mr. Graves, for their diligence in putting this very important 

legislation together. I think everybody here will agree that this is 

the mother’s milk of development in our country. We have so little 

venture capital, and I am so pleased. 

As the Chair knows from her previous experience with me that 

I am very passionate about venture capital, very passionate about 

her Title III Angel investment that the authors have incorporated 

in this bill; and indeed, when I was a freshman, I was the lead author of the reauthorization of the New Markets Venture Capital 

program. 

Now, the difference in the original New Markets Venture Capital 

program and the SEED Act, which is securing equity for the economic development of low-income areas, the SEED Act, which I introduced, was reflected in the bill that we saw the other day. And 

it was a compromise that I made with the industry to try to bring 

it in sync with the New Markets Tax Credits program. Originally 

the New Markets Venture Capital program said that 50 percent of 

the households in a Census tract had to have a 60 percent lessthan-median income in order for that Census tract to qualify for 

the New Markets Venture Capital program. And in the language 

of the bill that we had originally, the compromise was made because the venture capital community said that we need to bring it 

in line with the New Markets Tax Credits program. 

What my amendment does is to replace the language because I 

didn’t want to go that far. The industry then came back and wanted to not only change the definition of the low-income geographic 

areas in terms of the median income but to change what counts as 

an investment in the community. 

For example, the bill as it is currently written, says that at least 

50 percent of the business’ income is derived from low-income individuals. So in other words, you could be Wal-Mart, and if 50 perVerDate 0ct 09 2002 18:18 Jan 22, 2008 Jkt 033615 PO 00000 Frm 00012 Fmt 6633 Sfmt 6633 G:\CLERK SB\HEARINGS\TRANSCRIPTS\38204.TXT LEANN
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cent of the people who come and shop at your place are low-income, 

then that would qualify for the New Markets Venture Capital program. Or at least 40 percent of the business’ employees are lowincome. 

So if you have got a business that—you want to start up a small 

business, and 10 of the employees, you could have 10 of them making $250,000, and you have got the truck driver, the elevator operator, the receptionist and the janitor, that would qualify. At least 

50 percent of the businesses owned by low-income individuals, well, 

that would be marvelous. 

I just think the reason that I didn’t include those provisions in 

the SEED Act, which my SEED Act was exactly what Mr. Altmire 

and Mr. Graves put in their bill prior to some changes that were 

made before we got here today, is because of the huge, huge opportunity that this would allow for very wealthy people to take advantage of a program that was designed—and I know that you, Madam 

Chair, I have worked with you long enough to know what your values are and what you would like to do. 

So I would love to work with you, Madam Chair, to try to get 

a sense, some report language that really, really puts this Committee on record as wanting to make sure that these loopholes are 

not interpreted as the examples that I have given that seem preposterous and ridiculous. But we have been on this planet long 

enough to know that people, you know, rejoice in these kinds of 

loopholes and take advantage of them. 

Chairwoman VELA ́ ZQUEZ. Are you prepared to withdraw the 

amendment with the commitment that I will work with you and 

the Committee on Ways and Means so that the definition of lowincome area could be resolved? 

Ms. MOORE. I am willing to work with you. But I also want, 

Madam Chair, a commitment that you will provide some report 

language, and I surely would welcome adding language, talking 

about the need for Ways and Means to work with us, but I want 

some report language that reflects this Committee’s desire to have 

this program benefit low-income areas. 

Chairwoman VELA ́ ZQUEZ. As I explained to the gentlelady on my 

way here, the issue here is that in order to achieve what you intend to do with your amendment, we will have to get the Ways and 

Means Committee to change the definition of low-income area. So 

that is beyond the jurisdiction of this Committee. 

Ms. MOORE. Reclaiming my time, Madam Chair. This Committee 

has jurisdiction over the New Markets Venture Capital program. 

We are not discussing the New Markets Tax—both these programs 

were authorized in the Clinton administration, both of them operated in the Clinton administration. It is not the case that these two 

programs couldn’t operate with different definitions. They, in fact, 

have done it. And to the extent that there has been any coming together or bringing together of these definitions, I am the one who 

has done it. 

When I introduced my SEED Act, and that language was lifted, 

my bill was lifted totally and placed in this bill. So you know, I am 

taking responsibility and great pride in the fact that I have worked 

with the industry to try to bring these two together. I just wasn’t 

willing to open the door completely to that. 

8

I am certainly willing to work with the Ways and Means Committee, but we are not considering the New Markets Tax Credits 

program today. We are talking about the New Markets Venture 

Capital program, and all I am asking you for is not to change tax 

law today, I am just asking you to place in some report language 

that our intent is to provide this venture capital to benefit low-income communities. 

Madam Chair, you know, you are from New York, and maybe 

this is not a problem that affects your area. But we had testimony 

here that indicated that venture capital was very much aligned 

with the East Coast, with the Silicon Valley, and that places in the 

Midwest, like I live, there is a dearth of venture capital. 

And this program, you know, we don’t have any problem finding 

venture capital for wealthy Census tracts. This is a government 

program, and all I want is to place that sense of Congress, that intent in the record. And I am puzzled and bewildered why—apparently your staff is whispering in your ear. I am just puzzled and 

bewildered as to why this is such a great commitment to be made, 

why this is so difficult to make a commitment that we will report 

our intent to have New Markets Venture Capital benefit low-income Census tracts. And to work with them—I think that is marvelous to include that language about them. But what is wrong 

with including my concern? 

Chairwoman VELA ́ ZQUEZ. Your concern—

Ms. MOORE. Is within the jurisdiction of this Committee. 

Chairwoman VELA ́ ZQUEZ. —does not strike the balance that we 

intend in the bill that we are considering today. So if the 

gentlelady is prepared to offer her amendment, then let’s do that, 

and we call a vote. 

Ms. MOORE. Well, Madam Chair, begging your indulgence, begging your indulgence, I just want to, you know—

I know what time it is, actually. And I just want to repeat that 

this particular version of the bill, whether it is the New Markets 

Venture Capital program or the New Markets Tax program, you 

could drive a Mack truck through the definition of a geographic 

low-income area and that very, very wealthy individuals will not 

have to locate within low-income Census tracts. And all they have 

got to do is hire a handful of low-income people outside of poor 

communities in order to qualify for these benefits. 

So I just want to clarify that that is indeed the loophole that we 

have left in here. And like I said, I have worked on it for 2 years, 

so it is not like I woke up this morning and ran in here with this 

idea. 

And so apparently you are not going to accept that, and you are 

the Chair of the Committee. I do respect you as the Chair of the 

Committee. And I know what that means if I were to put my 

amendment to a vote. So I wouldn’t want to jeopardize my wellthought-out legislation by putting it to a vote here in the Committee. So I will withdraw it without that commitment from you, 

Madam Chair, and let you proceed on with your business. Thank 

you. 

Chairwoman VELA ́ ZQUEZ. My commitment to the gentlelady is to 

work with her and to address some of the issues that you raised. 

But as I said to you before, we can work together with the Ways 

9

and Means Committee. We updated the program. We made the 

changes that were asked from the industry and the communitybased organizations that came before this Committee. We strike a 

balance. And it doesn’t matter if we are going to provide tax credits 

so that people will not be able to use them. So what we achieve 

with this legislation is striking a balance between the tax credits 

and the amount of individuals that will benefit from using the tax 

credit. 

So this amendment is inconsistent with the original intent of the 

program. The program was originally intended to work hand in 

hand with the New Markets Tax Credits. The two definitions must 

be aligned, and that is the balance that we are achieving under 

this legislation. 

So I will continue to work with the gentlelady and see how can 

we work with the Ways and Means Committee so that her concerns 

are addressed, but that goes beyond the jurisdiction of this Committee right now. 

And I thank the gentlelady for her effort, her work and her commitment to bring venture capital to low-income communities. 

Ms. MOORE. Thank you. 

Chairwoman VELA ́ ZQUEZ. Are there any other members that wish 

to be recognized at this point? 

Without objection, the amendment will withdraw. 

Are there any other members who wish to offer amendments at 

this point? 

The Committee now moves to consideration of the bill H.R. 3567. 

The Clerk will report the title of the bill. 

No. Sorry. 

Seeing no amendments, the question is on passing and reporting 

the bill, H.R. 3567. 

All those in favor say aye. 

All those opposed, no. 

The ayes have it, and H.R. 3567 is adopted and ordered. 

I ask unanimous consent that the Committee be authorized to 

correct section numbers, punctuation and cross-references and to 

make other necessary technical and conforming corrections on the 

bills considered today. Without objection, so ordered. 

[Whereupon, at 10:38 a.m., the Committee was adjourned.]

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