II 

109TH CONGRESS 

1ST SESSION S. 1396

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

small business investment, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 14, 2005

Mr. ALLEN (for himself and Mr. SANTORUM) introduced the following bill; 

which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs 

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’’. 
2

•S 1396 IS 

1 SEC. 2. AMENDMENTS TO THE INVESTMENT COMPANY ACT 

2 OF 1940. 

3 (a) DEFINITION OF ELIGIBLE PORTFOLIO COM4 PANY.—Section 2(a)(46)(C) of the Investment Company 

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

6 (1) by striking clause (i) and inserting the fol7 lowing: 

8 ‘‘(i) it does not have any class of eq9 uity securities listed for trading on a na10 tional securities exchange or traded 

11 through the facilities of a national securi12 ties association, as described in section 

13 15A of the Securities Exchange Act of 

14 1934;’’; 

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

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

17 and 

18 (4) by inserting after clause (iii) the following: 

19 ‘‘(iv) the aggregate value of its out20 standing publicly traded equity securities is 

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

22 the Commission may adjust such amount 

23 by rule, regulation, or order to reflect 

24 changes in one or more generally accepted 

25 indices or other indicators for small busi26 ness, consistent with the public interest, 
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•S 1396 IS 

1 the protection of investors, and the pur2 poses fairly intended by the policy and pro3 visions of this title; or’’. 

4 (b) ASSETS OF BUSINESS DEVELOPMENT COMPA5 NIES.—Section 55(a)(1) of the Investment Company Act 

6 of 1940 (15 U.S.C. 80a–54(a)(1)) is amended—

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

8 with respect to which a member of a national securi9 ties exchange, broker, or dealer may extend or main10 tain credit to or for a customer pursuant to rules or 

11 regulations adopted by the Board of Governors of 

12 the Federal Reserve System under section 7 of the 

13 Securities Exchange Act of 1934’’ and inserting the 

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

15 national securities exchange or traded through the 

16 facilities of a national securities association, as de17 scribed in section 15A of the Securities Exchange 

18 Act of 1934’’; 

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

20 (A); 

21 (3) by inserting ‘‘or’’ after the semicolon at the 

22 end of subparagraph (B); and 

23 (4) by inserting after subparagraph (B) the fol24 lowing: 
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•S 1396 IS 

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

2 which issuer is described in subparagraphs (A) 

3 and (B) of section 2(a)(46), but is not an eligi4 ble portfolio company because the aggregate 

5 value of its outstanding publicly traded equity 

6 securities is more than $250,000,000 but not 

7 more than $500,000,000, if such securities rep8 resent not more than 10 percent of the total as9 sets of the business development company in10 vested in securities described in paragraphs (1) 

11 through (6) of this subsection;’’.

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