117TH CONGRESS 

2D SESSION S. 2521 

AN ACT 

To require the Administrator of the Small Business Administration to establish an SBIC Advisory Committee, 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, 
2 

†S 2521 ES

1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘SBIC Advisory Com3 mittee Act of 2022’’. 

4 SEC. 2. SBIC ADVISORY COMMITTEE. 

5 (a) DEFINITIONS.—In this section— 

6 (1) the terms ‘‘Administration’’ and ‘‘Adminis7 trator’’ mean the Small Business Administration 

8 and the Administrator thereof, respectively; 

9 (2) the term ‘‘covered Members’’ means the 

10 Chair and Ranking Member of— 

11 (A) the Committee on Small Business and 

12 Entrepreneurship of the Senate; and 

13 (B) the Committee on Small Business of 

14 the House of Representatives; 

15 (3) the terms ‘‘licensee’’, ‘‘small business in16 vestment company’’, and ‘‘underlicensed State’’ have 

17 the meanings given those terms in section 301 of the 

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

19 662); 

20 (4) the term ‘‘low-income community’’ has the 

21 meaning given the term in section 45D(e) of the In22 ternal Revenue Code of 1986; 

23 (5) the term ‘‘rural area’’ has the meaning 

24 given the term by the Bureau of the Census; 

25 (6) the terms ‘‘small business concern’’, ‘‘small 

26 business concern owned and controlled by veterans’’, 
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†S 2521 ES

1 and ‘‘small business concern owned and controlled 

2 by women’’ have the meanings given those terms in 

3 section 3 of the Small Business Act (15 U.S.C. 

4 632); 

5 (7) the term ‘‘socially or economically disadvan6 taged individual’’ means a socially disadvantaged in7 dividual or economically disadvantaged individual, as 

8 described in paragraphs (5) and (6)(A), respectively, 

9 of section 8(a) of the Small Business Act (15 U.S.C. 

10 637(a)); 

11 (8) the term ‘‘underfinanced State’’ means a 

12 State that has below median financing, as deter13 mined by the Administrator; and 

14 (9) the term ‘‘underserved community’’ 

15 means— 

16 (A) a HUBZone, as defined in section 

17 31(b) of the Small Business Act (15 U.S.C. 

18 657a(b)); 

19 (B) a community that has been designated 

20 as an empowerment zone or an enterprise com21 munity under section 1391 of the Internal Rev22 enue Code of 1986; 

23 (C) a community that has been designated 

24 as a promise zone by the Secretary of Housing 

25 and Urban Development; and 
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†S 2521 ES

1 (D) a community that has been designated 

2 as a qualified opportunity zone under section 

3 1400Z–1 of the Internal Revenue Code of 1986. 

4 (b) ESTABLISHMENT.—The Administrator shall es5 tablish an SBIC Advisory Committee (referred to in this 

6 section as the ‘‘Advisory Committee’’) to convene outside 

7 experts to advise on the small business investment pro8 gram under title III of the Small Business Investment Act 

9 of 1958 (15 U.S.C. 681 et seq.). 

10 (c) COMPOSITION.— 

11 (1) MEMBERSHIP.—The Advisory Committee 

12 shall be composed of 16 members appointed by the 

13 Administrator as follows: 

14 (A) The Associate Administrator of the Of15 fice of Investment and Innovation of the Small 

16 Business Administration, or another designee of 

17 the Administrator as determined by the Admin18 istrator. 

19 (B) 7 members with competence, interest, 

20 or knowledge of the small business investment 

21 program under title III of the Small Business 

22 Investment Act of 1958 (15 U.S.C. 681 et 

23 seq.), of whom— 
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1 (i) not fewer than 3 shall have a dem2 onstrated record of expertise in investing 

3 in— 

4 (I) low-income communities; 

5 (II) communities that have been 

6 designated as qualified opportunity 

7 zones under section 1400Z–1 of the 

8 Internal Revenue Code of 1986; 

9 (III) businesses primarily en10 gaged in research and development; 

11 (IV) manufacturers; 

12 (V) businesses primarily owned 

13 or controlled by individuals in under14 served communities before receiving 

15 capital from the licensee; 

16 (VI) rural areas; or 

17 (VII) underfinanced States; and 

18 (ii) not fewer than 1 member shall be 

19 a representative from a trade association 

20 for the small business investment program 

21 under title III of the Small Business In22 vestment Act of 1958 (15 U.S.C. 681 et 

23 seq.). 

24 (C) 8 members appointed by the Adminis25 trator as follows: 
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1 (i) 2 members shall be selected from 

2 among the individuals in the list submitted 

3 by the Chair of the Committee on Small 

4 Business and Entrepreneurship of the Sen5 ate under paragraph (2). 

6 (ii) 2 members shall be selected from 

7 among the individuals in the list submitted 

8 by the Ranking Member of the Committee 

9 on Small Business and Entrepreneurship 

10 of the Senate under paragraph (2). 

11 (iii) 2 members shall be selected from 

12 among the individuals in the list submitted 

13 by the Chair of the Committee on Small 

14 Business of the House of Representatives 

15 under paragraph (2). 

16 (iv) 2 members shall be selected from 

17 among the individuals in the list submitted 

18 by the Ranking Member of the Committee 

19 on Small Business of the House of Rep20 resentatives under paragraph (2). 

21 (2) RECOMMENDATIONS.—Not later than 30 

22 days after the date of enactment of this Act, each 

23 of the covered Members shall provide to the Admin24 istrator a list of 3 candidates for membership on the 

25 Advisory Committee, who shall be individuals who 
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1 hold a high-ranking position or senior leadership 

2 role, and have no conflict of interest in the small 

3 business investment program under title III of the 

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

5 681 et seq.), in— 

6 (A) a relevant industry trade association; 

7 (B) the investment industry with expertise 

8 in pensions, endowments, and other non-bank9 ing institutions; 

10 (C) academia with expertise in the invest11 ment industry; or 

12 (D) a nonprofit institution, including one 

13 that serves any of the entities described in sub14 clauses (I) through (VII) of paragraph 

15 (1)(B)(i). 

16 (3) PRIVATE SECTOR MEMBERS.—Not fewer 

17 than 2 and not more than 4 of the members of the 

18 Advisory Committee shall be investors in the private 

19 sector who— 

20 (A) invest in small business concerns; and 

21 (B) as of the date of appointment, do not 

22 participate in the small business investment 

23 program under title III of the Small Business 

24 Investment Act of 1958 (15 U.S.C. 681 et 

25 seq.). 
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†S 2521 ES

1 (4) CHAIRPERSON.—The Chairperson of the 

2 Advisory Committee shall be the member of the Ad3 visory Committee appointed under paragraph (1)(A). 

4 (5) PERIOD OF APPOINTMENT.—Members of 

5 the Advisory Committee shall be appointed for the 

6 life of the Advisory Committee. 

7 (6) VACANCIES.—Any vacancy in the Advisory 

8 Committee shall be filled in the same manner as the 

9 original appointment. 

10 (d) DEADLINE FOR APPOINTMENT.—Not later than 

11 60 days after the date on which the covered Members pro12 vide the lists to the Administrator under subsection (c)(2), 

13 the Administrator shall— 

14 (1) appoint the members of the Advisory Com15 mittee; and 

16 (2) submit to Congress a list of the members so 

17 appointed. 

18 (e) DUTIES.—The Advisory Committee shall provide 

19 advice and recommendations to the Administrator— 

20 (1) concerning policy and program development 

21 and other matters of significance concerning activi22 ties under the Small Business Act (15 U.S.C. 631 

23 et seq.) and the Small Business Investment Act of 

24 1958 (15 U.S.C. 661 et seq.), including diversifying 

25 management teams or companies; 
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1 (2) concerning incentives for small business in2 vestment companies to— 

3 (A) invest and locate in underlicensed 

4 States and underfinanced States; and 

5 (B) invest in small business concerns, in6 cluding those owned and controlled by socially 

7 or economically disadvantaged individuals, small 

8 business concerns owned and controlled by vet9 erans, and small business concerns owned and 

10 controlled by women; 

11 (3) concerning metrics of success, and bench12 marks for success, with respect to the goals de13 scribed in this section; and 

14 (4) concerning the impact of the small business 

15 investment program under title III of the Small 

16 Business Investment Act of 1958 (15 U.S.C. 681 et 

17 seq.) on the private investment market, including 

18 whether investments under the program compete 

19 with the private sector. 

20 (f) REPORT.—Not later than 18 months after the 

21 date on which the Administrator establishes the Advisory 

22 Committee under subsection (b), the Advisory Committee 

23 shall submit to the Administrator, the Committee on 

24 Small Business and Entrepreneurship of the Senate, and 

25 the Committee on Small Business of the House of Rep-
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1 resentatives a report that includes the recommendations 

2 of the Advisory Committee described in subsection (e). 

3 (g) TERMINATION.—The Advisory Committee shall 

4 terminate on the date on which the Advisory Committee 

5 submits the report required under subsection (f). 

Passed the Senate September 28, 2022. 

Attest: 

Secretary. 

117TH CONGRESS 

2D SESSION S. 2521 

AN ACT 

To require the Administrator of the Small Business 

Committee, and for other purposes. Administration to establish an SBIC Advisory