IIB 

108TH CONGRESS 

2D SESSION H. R. 3170

IN THE SENATE OF THE UNITED STATES 

APRIL 29, 2004

Received; read twice and referred to the Committee on Banking, Housing, and 

Urban Affairs 

AN ACT

To amend the Investment Company Act of 1940 to provide 

incentives for small business investment, and for other 

purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Increased Capital Ac3 cess for Growing Business Act’’. 

4 SEC. 2. AMENDMENTS TO THE INVESTMENT COMPANY ACT 

5 OF 1940. 

6 (a) DEFINITION OF ELIGIBLE PORTFOLIO COM7 PANY.—Section 2(a)(46)(C) of the Investment Company 

8 Act of 1940 (15 U.S.C. 80a–2(a)(46)(C)) is amended—

9 (1) by striking clause (i) and inserting the fol10 lowing: 

11 ‘‘(i) it does not have any class of eq12 uity securities listed for trading on a na13 tional securities exchange or traded 

14 through the facilities of a national securi15 ties association as described in Section 

16 15A of the Securities Exchange Act of 

17 1934;’’; 

18 (2) by striking ‘‘or’’ at the end of clause (iii); 

19 (3) by redesignating clause (iv) as clause (v); 

20 and 

21 (4) by inserting after clause (iii) the following 

22 new clause: 

23 ‘‘(iv) the aggregate value of its out24 standing publicly traded equity securities is 

25 not more than $250,000,000, except that 

26 the Commission may adjust such amounts 
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1 by rule, regulation, or order to reflect 

2 changes in one or more generally accepted 

3 indices or other indicators for small busi4 ness, consistent with the public interest, 

5 the protection of investors, and the pur6 poses fairly intended by the policy and pro7 visions of this title; or’’. 

8 (b) ASSETS OF BUSINESS DEVELOPMENT COMPA9 NIES.—Section 55(a)(1) of the Investment Company Act 

10 of 1940 (15 U.S.C. 80a–55(a)(1)) is amended—

11 (1) in subparagraph (B), by striking ‘‘securities 

12 with respect to which a member of a national securi13 ties exchange, broker, or dealer may extend or main14 tain credit to or for a customer pursuant to rules or 

15 regulations adopted by the Board of Governors of 

16 the Federal Reserve System under Section 7 of the 

17 Securities Exchange Act of 1934’’ and inserting the 

18 following: ‘‘equity securities listed for trading on a 

19 national securities exchange or traded through the 

20 facilities of a national securities association as de21 scribed in Section 15A of the Securities Exchange 

22 Act of 1934’’; and 

23 (2) by striking ‘‘or’’ at the end of subparagraph 

24 (A), by inserting ‘‘or’’ after the semicolon at the end 
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1 of subparagraph (B), and by inserting after sub2 paragraph (B) the following new subparagraph: 

3 ‘‘(C) from the issuer of such securities, 

4 which issuer is described in section 2(a)(46)(A) 

5 and (B) but is not an eligible portfolio company 

6 because the aggregate value of its outstanding 

7 publicly traded equity securities is more than 

8 $250,000,000 but not more than $500,000,000, 

9 if such securities represent not more than 10 

10 per centum of the total assets of the business 

11 development company invested in securities de12 scribed in paragraphs (1) through (6) of this 

13 section;’’.

Passed the House of Representatives April 28, 2004. 

Attest: JEFF TRANDAHL, 

Clerk.