IB

Union Calendar No. 1

106TH CONGRESS

1ST SESSION H. R. 68

[Report No. 106–1]

To amend section 20 of the Small Business Act and make technical

corrections in title III of the Small Business Investment Act.

IN THE HOUSE OF REPRESENTATIVES

JANUARY 6, 1999

Mr. TALENT (for himself, Ms. VELA ́ZQUEZ, Mrs. KELLY, Mr. SISISKY, Mr.

MANZULLO, Mr. PASCRELL, Mr. LOBIONDO, Mrs. MCCARTHY of New

York, Mr. ENGLISH, Ms. MILLENDER-MCDONALD, Mr. MOORE, and Mr.

DEMINT) introduced the following bill; which was referred to the Committee on Small Business

JANUARY 19, 1999

Committed to the Committee of the Whole House on the State of the Union

and ordered to be printed

A BILL

To amend section 20 of the Small Business Act and make

technical corrections in title III of the Small Business

Investment Act.

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 ‘‘Small Business Invest3 ment Company Technical Corrections Act of 1999’’.

4 SEC. 2. SBIC PROGRAM.

5 (a) IN GENERAL.—Section 308(i)(2) of the Small

6 Business Investment Act of 1958 (15 U.S.C. 687(i)(2))

7 is amended by adding at the end the following: ‘‘In this

8 paragraph, the term ‘interest’ includes only the maximum

9 mandatory sum, expressed in dollars or as a percentage

10 rate, that is payable with respect to the business loan

11 amount received by the small business concern, and does

12 not include the value, if any, of contingent obligations, in13 cluding warrants, royalty, or conversion rights, granting

14 the small business investment company an ownership in15 terest in the equity or increased future revenue of the

16 small business concern receiving the business loan.’’.

17 (b) FUNDING LEVELS.—Section 20 of the Small

18 Business Act (15 U.S.C. 631 note) is amended—

19 (1) in subsection (d)(1)(C)(i), by striking

20 ‘‘$800,000,000’’ and inserting ‘‘$1,000,000,000’’;

21 and

22 (2) in subsection (e)(1)(C)(i), by striking

23 ‘‘$900,000,000’’ and inserting ‘‘$1,200,000,000’’.

24 (c) TECHNICAL CORRECTIONS.—Title III of the

25 Small Business Investment Act of 1958 (15 U.S.C. 661

26 et seq.) is amended—
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1 (1) in section 303(g) (15 U.S.C. 683(g)), by

2 striking paragraph (13);

3 (2) in section 308 (15 U.S.C. 687) by adding

4 at the end the following:

5 ‘‘(j) For the purposes of sections 304 and 305, in

6 any case in which an incorporated or unincorporated busi7 ness is not required by law to pay Federal income taxes

8 at the enterprise level, but is required to pass income

9 through to its shareholders or partners, an eligible small

10 business or smaller enterprise may be determined by com11 puting the after-tax income of such business by deducting

12 from the net income an amount equal to the net income

13 multiplied by the combined marginal Federal and State

14 income tax rate for corporations.’’; and

15 (3) in section 320 (15 U.S.C. 687m), by strik16 ing ‘‘6’’ and inserting ‘‘12’’.
Union Calendar No. 1

106TH CONGRESS

1ST SESSION H. R. 68

[Report No. 106–1]

A BILL

To amend section 20 of the Small Business Act and

Small Business Investment Act.make technical corrections in title III of the

JANUARY 19, 1999

Committed to the Committee of the Whole House on the

State of the Union and ordered to be printed