I 

111TH CONGRESS 

1ST SESSION H. R. 3722 

To amend the Small Business Investment Act of 1958 to improve the New 

Markets Venture Capital and Renewable Fuel Capital Investment Programs, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 6, 2009 

Mrs. KIRKPATRICK of Arizona introduced the following bill; which was 

referred to the Committee on Small Business 

A BILL 

To amend the Small Business Investment Act of 1958 to 

improve the New Markets Venture Capital and Renewable Fuel Capital Investment Programs, 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 ‘‘Enhanced New Mar5 kets and Expanded Investment in Renewable Energy for 

6 Small Manufacturers Act of 2009’’. 


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1 TITLE I—ENHANCED NEW MAR2 KETS VENTURE CAPITAL 

3 PROGRAM 

4 SEC. 101. EXPANSION OF NEW MARKETS VENTURE CAPITAL 

5 PROGRAM. 

6 (a) ADMINISTRATION PARTICIPATION REQUIRED.— 

7 Section 353 of the Small Business Investment Act of 1958 

8 (15 U.S.C. 689b) is amended by striking ‘‘under which 

9 the Administrator may’’ and inserting ‘‘under which the 

10 Administrator shall’’. 

11 (b) REPORT TO CONGRESS.—Not later than 1 year 

12 after the date of the enactment of this Act, the Adminis13 trator of the Small Business Administration shall submit 

14 to Congress a report describing any expansion of the New 

15 Markets Venture Capital Program as a result of this sec16 tion. 

17 SEC. 102. IMPROVED NATIONWIDE DISTRIBUTION. 

18 Section 354 of the Small Business Investment Act 

19 of 1958 (15 U.S.C. 689c) is amended by adding at the 

20 end the following: 

21 ‘‘(f) GEOGRAPHIC EXPANSION.—From among com22 panies submitting applications under subsection (b), the 

23 Administrator shall consider the selection criteria and pro24 motion of nationwide distribution under subsection (c) and 

25 shall, to the extent practicable, approve at least one comVerDate Nov 24 2008 04:31 Oct 07, 2009 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3722.IH H3722

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1 pany from each geographic region of the Small Business 

2 Administration.’’. 

3 SEC. 103. INCREASED INVESTMENT IN SMALL BUSINESS 

4 CONCERNS ENGAGED PRIMARILY IN MANU5 FACTURING. 

6 (a) DEVELOPMENTAL VENTURE CAPITAL AND PAR7 TICIPATION AGREEMENTS.—Section 351 of the Small 

8 Business Investment Act of 1958 (15 U.S.C. 689) is 

9 amended— 

10 (1) in paragraph (1) by inserting after ‘‘geo11 graphic areas’’ the following: ‘‘or encouraging the 

12 growth or continuation of small business concerns 

13 located in low-income geographic areas and engaged 

14 primarily in manufacturing’’; and 

15 (2) in paragraph (6)(B) by inserting after ‘‘geo16 graphic areas’’ the following: ‘‘or in small business 

17 concerns located in low-income geographic areas at 

18 least 80 percent of which are engaged primarily in 

19 manufacturing’’. 

20 (b) PURPOSES.—Section 352(2) of the Small Busi21 ness Investment Act of 1958 (15 U.S.C. 689a(2)) is 

22 amended— 

23 (1) in the matter preceding subparagraph (A) 

24 by inserting after ‘‘geographic areas’’ the following: 

25 ‘‘and small business concerns located in low-income 


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1 geographic areas and engaged primarily in manufac2 turing’’; 

3 (2) in subparagraph (B) by inserting after ‘‘ge4 ographic areas’’ the following: ‘‘or in small business 

5 concerns located in low-income geographic areas and 

6 engaged primarily in manufacturing’’; and 

7 (3) in subparagraph (C) by inserting after 

8 ‘‘smaller enterprises’’ the following: ‘‘and small busi9 ness concerns’’. 

10 (c) ELIGIBILITY, APPLICATIONS, AND REQUIRE11 MENTS FOR FINAL APPROVAL.—Section 354 of the Small 

12 Business Investment Act of 1958 (15 U.S.C. 689c), as 

13 amended by this Act, is further amended— 

14 (1) in subsection (a)(3) by inserting after ‘‘geo15 graphic areas’’ the following: ‘‘or investing in small 

16 business concerns located in low-income geographic 

17 areas and engaged primarily in manufacturing’’; 

18 (2) in subsection (b)— 

19 (A) in paragraph (1) by inserting after 

20 ‘‘geographic areas’’ the following: ‘‘or in small 

21 business concerns located in low-income geo22 graphic areas and engaged primarily in manu23 facturing’’; and 


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1 (B) in paragraph (4) by inserting after 

2 ‘‘smaller enterprises’’ the following: ‘‘or small 

3 business concerns’’; and 

4 (3) in subsection (d)— 

5 (A) in paragraph (1)— 

6 (i) by striking ‘‘Each’’ and inserting 

7 the following: 

8 ‘‘(A) IN GENERAL.—Except as provided in 

9 subparagraph (B), each’’; and 

10 (ii) by adding at the end the fol11 lowing: 

12 ‘‘(B) SMALL BUSINESS CONCERNS EN13 GAGED PRIMARILY IN MANUFACTURING.—Each 

14 conditionally approved company engaged pri15 marily in development of and investment in 

16 small business concerns located in low-income 

17 geographic areas and engaged primarily in 

18 manufacturing shall raise not less than 

19 $3,000,000 of private capital or binding capital 

20 commitments from one or more investors (other 

21 than agencies or departments of the Federal 

22 Government) who met criteria established by 

23 the Administrator.’’; and 


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1 (B) in paragraph (2)(A) by inserting after 

2 ‘‘smaller enterprises’’ the following: ‘‘or small 

3 business concerns’’. 

4 (d) OPERATIONAL ASSISTANCE GRANTS.—Section 

5 358 of the Small Business Investment Act of 1958 (15 

6 U.S.C. 689g) is amended— 

7 (1) in subsection (a)(1) by inserting after 

8 ‘‘smaller enterprises’’ the following: ‘‘and small busi9 ness concerns’’; and 

10 (2) in subsection (b)(1) by inserting after 

11 ‘‘smaller enterprises’’ the following: ‘‘and small busi12 ness concerns’’. 

13 SEC. 104. EXPANDED USES FOR OPERATIONAL ASSISTANCE 

14 IN MANUFACTURING. 

15 Section 351 of the Small Business Investment Act 

16 of 1958 (15 U.S.C. 689), as amended by this Act, is fur17 ther amended in paragraph (5) by inserting after ‘‘busi18 ness development’’ the following: ‘‘or assistance that as19 sists a small business concern located in a low-income geo20 graphic area and engaged primarily in manufacturing with 

21 retooling, updating, or replacing machinery or equip22 ment’’. 


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1 SEC. 105. UPDATING DEFINITION OF LOW-INCOME GEO2 GRAPHIC AREA. 

3 Section 351 of the Small Business Investment Act 

4 of 1958 (15 U.S.C. 689), as amended by this Act, is fur5 ther amended— 

6 (1) by striking paragraphs (2) and (3); 

7 (2) by inserting after paragraph (1) the fol8 lowing: 

9 ‘‘(2) LOW-INCOME GEOGRAPHIC AREA.—The 

10 term ‘low-income geographic area’ has the meaning 

11 given the term ‘low-income community’ in section 

12 45D(e) of the Internal Revenue Code of 1986.’’; and 

13 (3) by redesignating paragraphs (4) through 

14 (8) as paragraphs (3) through (7), respectively. 

15 SEC. 106. EXPANDING OPERATIONAL ASSISTANCE TO CON16 DITIONALLY APPROVED COMPANIES. 

17 Section 358(a) of the Small Business Investment Act 

18 of 1958 (15 U.S.C. 689g(a)) is amended by adding at the 

19 end the following: 

20 ‘‘(6) GRANTS TO CONDITIONALLY APPROVED

21 COMPANIES.— 

22 ‘‘(A) IN GENERAL.—Subject to the provi23 sions of this paragraph, upon the request of a 

24 company conditionally approved under section 

25 354(c), the Administrator shall make a grant to 

26 the company under this subsection. 


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1 ‘‘(B) REPAYMENT BY COMPANIES NOT AP2 PROVED.—If a company receives a grant under 

3 this paragraph and does not receive final ap4 proval under section 354(e), the company shall 

5 repay the amount of the grant to the Adminis6 trator. 

7 ‘‘(C) DEDUCTION FROM GRANT TO AP8 PROVED COMPANY.—If a company receives a 

9 grant under this paragraph and receives final 

10 approval under section 354(e), the Adminis11 trator shall deduct the amount of such grant 

12 from the amount of any immediately succeeding 

13 grant the company receives for operational as14 sistance. 

15 ‘‘(D) AMOUNT OF GRANT.—No company 

16 may receive a grant of more than $50,000 

17 under this paragraph.’’. 

18 SEC. 107. LIMITATION ON TIME FOR FINAL APPROVAL. 

19 Section 354(d) of the Small Business Investment Act 

20 of 1958 (15 U.S.C. 689c(d)) is amended in the matter 

21 preceding paragraph (1) by striking ‘‘a period of time, not 

22 to exceed 2 years,’’ and inserting ‘‘2 years’’. 


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1 SEC. 108. STREAMLINED APPLICATION FOR NEW MARKETS 

2 VENTURE CAPITAL PROGRAM. 

3 Not later than 60 days after the date of the enact4 ment of this Act, the Administrator of the Small Business 

5 Administration shall prescribe standard documents for a 

6 New Markets Venture Capital company final approval ap7 plication under section 354(e) of the Small Business In8 vestment Act of 1958 (15 U.S.C. 689c(e)). The Adminis9 trator shall ensure that the standard documents are de10 signed to substantially reduce the cost burden of the appli11 cation process for companies. 

12 SEC. 109. ELIMINATION OF MATCHING REQUIREMENT. 

13 Section 354(d)(2)(A)(i) of the Small Business Invest14 ment Act of 1958 (15 U.S.C. 689c(d)(2)(A)(i)) is amend15 ed— 

16 (1) in subclause (I) by adding ‘‘and’’ at the 

17 end; 

18 (2) in subclause (II) by striking ‘‘and’’ at the 

19 end; and 

20 (3) by striking subclause (III). 

21 SEC. 110. SIMPLIFIED FORMULA FOR OPERATIONAL AS22 SISTANCE GRANTS. 

23 Section 358(a)(4)(A) of the Small Business Invest24 ment Act of 1958 (15 U.S.C. 689g(a)(4)(A)) is amend25 ed— 


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1 (1) by striking ‘‘shall be equal to’’ and all that 

2 follows through the period at the end and inserting 

3 ‘‘shall be equal to the lesser of—’’; and 

4 (2) by adding at the end the following: 

5 ‘‘(i) 10 percent of the resources (in 

6 cash or in-kind) raised by the company 

7 under section 354(d)(2); or 

8 ‘‘(ii) $1,000,000.’’. 

9 SEC. 111. AUTHORIZATION OF APPROPRIATIONS AND EN10 HANCED ALLOCATION FOR SMALL MANUFAC11 TURING. 

12 Section 368(a) of the Small Business Investment Act 

13 of 1958 (15 U.S.C. 689q(a)) is amended— 

14 (1) in the matter preceding paragraph (1) by 

15 striking ‘‘fiscal years 2001 through 2006’’ and in16 serting ‘‘fiscal years 2010 and 2011’’; 

17 (2) in paragraph (1)— 

18 (A) by striking ‘‘$150,000,000’’ and in19 serting ‘‘$100,000,000’’; and 

20 (B) by inserting before the period at the 

21 end the following: ‘‘, of which not less than 50 

22 percent shall be used to guarantee debentures 

23 of companies engaged primarily in development 

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1 cated in low-income geographic areas and en2 gaged primarily in manufacturing’’; and 

3 (3) in paragraph (2)— 

4 (A) by striking ‘‘$30,000,000’’ and insert5 ing ‘‘$20,000,000’’; and 

6 (B) by inserting before the period at the 

7 end the following: ‘‘, of which not less than 50 

8 percent shall be used to make grants to compa9 nies engaged primarily in development of and 

10 investment in small business concerns located in 

11 low-income geographic areas and engaged pri12 marily in manufacturing’’. 

13 TITLE II—EXPANDED INVEST14 MENT IN SMALL BUSINESS 

15 RENEWABLE ENERGY 

16 SEC. 201. EXPANDED INVESTMENT IN RENEWABLE EN17 ERGY. 

18 Part C of title III of the Small Business Investment 

19 Act of 1958 (15 U.S.C. 690 et seq.) is amended— 

20 (1) in the heading by striking ‘‘RENEWABLE

21 FUEL CAPITAL INVESTMENT’’ and inserting ‘‘RE22 NEWABLE ENERGY CAPITAL INVESTMENT’’; 

23 (2) in the heading of paragraph (4) of section 

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1 VESTMENT’’ and inserting ‘‘RENEWABLE ENERGY

2 CAPITAL INVESTMENT’’; 

3 (3) in the heading of section 384 by striking 

4 ‘‘RENEWABLE FUEL CAPITAL INVESTMENT’’ and 

5 inserting ‘‘RENEWABLE ENERGY CAPITAL IN6 VESTMENT’’; and 

7 (4) by striking ‘‘Renewable Fuel Capital Invest8 ment’’ each place it appears and inserting ‘‘Renew9 able Energy Capital Investment’’. 

10 SEC. 202. RENEWABLE ENERGY CAPITAL INVESTMENT PRO11 GRAM MADE PERMANENT. 

12 Part C of title III of the Small Business Investment 

13 Act of 1958 (15 U.S.C. 690 et seq.), as amended by this 

14 Act, is further amended— 

15 (1) in the heading by striking ‘‘PILOT’’; and 

16 (2) by striking section 398. 

17 SEC. 203. EXPANDED ELIGIBILITY FOR SMALL BUSINESSES. 

18 Part C of title III of the Small Business Investment 

19 Act of 1958 (15 U.S.C. 690 et seq.), as amended by this 

20 Act, is further amended by striking ‘‘smaller enterprises’’ 

21 each place it appears and inserting ‘‘small business con22 cerns’’. 


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1 SEC. 204. EXPANDED USES FOR OPERATIONAL ASSISTANCE 

2 IN MANUFACTURING AND SMALL BUSI3 NESSES. 

4 Section 381(1) of the Small Business Investment Act 

5 of 1958 (15 U.S.C. 690(1)) is amended by inserting after 

6 ‘‘business development’’ the following: ‘‘, assistance that 

7 assists a small business concern to reduce energy con8 sumption, or assistance that assists a small business con9 cern engaged primarily in manufacturing with retooling, 

10 updating, or replacing machinery or equipment’’. 

11 SEC. 205. EXPANSION OF RENEWABLE ENERGY CAPITAL IN12 VESTMENT PROGRAM. 

13 (a) ADMINISTRATION PARTICIPATION REQUIRED.— 

14 Section 383 of the Small Business Investment Act of 1958 

15 (15 U.S.C. 690b) is amended by striking ‘‘under which 

16 the Administrator may’’ and inserting ‘‘under which the 

17 Administrator shall’’. 

18 (b) REPORT TO CONGRESS.—Not later than 1 year 

19 after the date of the enactment of this Act, the Adminis20 trator of the Small Business Administration shall submit 

21 to Congress a report describing any expansion of the Re22 newable Energy Capital Investment Program as a result 

23 of this section. 


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1 SEC. 206. SIMPLIFIED FEE STRUCTURE TO EXPEDITE IM2 PLEMENTATION. 

3 Section 387(a) of the Small Business Investment Act 

4 of 1958 (15 U.S.C. 690f(a)) is amended by striking ‘‘or 

5 grant’’. 

6 SEC. 207. INCREASED OPERATIONAL ASSISTANCE GRANTS. 

7 Section 397(a) of the Small Business Investment Act 

8 of 1958 (15 U.S.C. 690p(a)) is amended by inserting after 

9 ‘‘and 2009’’ the following: ‘‘and $30,000,000 in such 

10 grants for each of fiscal years 2010 and 2011’’. 

11 SEC. 208. AUTHORIZATIONS OF APPROPRIATIONS. 

12 Section 397 of the Small Business Investment Act 

13 of 1958 (15 U.S.C. 690p) is amended— 

14 (1) in the heading by inserting after ‘‘APPRO15 PRIATIONS’’ the following: ‘‘AND PROGRAM LEV16 ELS’’; and 

17 (2) by adding at the end the following: 

18 ‘‘(c) PROGRAM LEVELS.—For the programs author19 ized by this part, the Administration is authorized to make 

20 $1,000,000,000 in guarantees of debentures for each of 

21 fiscal years 2010 and 2011.’’. 

Æ 


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