I 

108TH CONGRESS 

1ST SESSION H. R. 3170

To amend the Investment Company Act of 1940 to provide incentives for 

small business investment, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 24, 2003

Mrs. KELLY (for herself and Ms. VELA ́ZQUEZ) introduced the following bill; 

which was referred to the Committee on Financial Services 

A BILL

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,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Increased Capital Ac5 cess for Growing Business Act’’. 

6 SEC. 2. AMENDMENTS TO THE INVESTMENT COMPANY ACT 

7 OF 1940. 

8 (a) DEFINITION OF ELIGIBLE PORTFOLIO COM9 PANY.—Section 2(a)(46)(C) of the Investment Company 

10 Act of 1940 (15 U.S.C. 80a–2(a)(46)(C)) is amended—
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1 (1) by striking clause (i) and inserting the fol2 lowing: 

3 ‘‘(i) it does not have any class of eq4 uity securities listed for trading on a na5 tional securities exchange or traded 

6 through the facilities of a national securi7 ties association as described in Section 

8 15A of the Securities Exchange Act of 

9 1934;’’; 

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

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

12 and 

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

14 new clause: 

15 ‘‘(iv) the aggregate value of its out16 standing publicly traded equity securities is 

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

18 the Commission may adjust such amounts 

19 by rule, regulation, or order to reflect 

20 changes in one or more generally accepted 

21 indices or other indicators for small busi22 ness, consistent with the public interest, 

23 the protection of investors, and the pur24 poses fairly intended by the policy and pro25 visions of this title; or’’. 
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1 (b) ASSETS OF BUSINESS DEVELOPMENT COMPA2 NIES.—Section 55(a)(1) of the Investment Company Act 

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

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

5 with respect to which a member of a national securi6 ties exchange, broker, or dealer may extend or main7 tain credit to or for a customer pursuant to rules or 

8 regulations adopted by the Board of Governors of 

9 the Federal Reserve System under Section 7 of the 

10 Securities Exchange Act of 1934’’ and inserting the 

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

12 national securities exchange or traded through the 

13 facilities of a national securities association as de14 scribed in Section 15A of the Securities Exchange 

15 Act of 1934’’; and 

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

17 (A), by inserting ‘‘or’’ after the semicolon at the end 

18 of subparagraph (B), and by inserting after sub19 paragraph (B) the following new subparagraph: 

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

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

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

23 because the aggregate value of its outstanding 

24 publicly traded equity securities is more than 

25 $250,000,000 but not more than $500,000,000, 
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1 if such securities represent not more than 10 

2 per centum of the total assets of the business 

3 development company invested in securities de4 scribed in paragraphs (1) through (6) of this 

5 section;’’.

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