I 

117TH CONGRESS 

1ST SESSION H. R. 1020 

To establish the Innovation and Startups Equity Investment Program in 

the Department of the Treasury, through which the Secretary of the 

Treasury shall allocate money to certain States to assist high-potential 

scalable startups access venture capital to commercialize innovations, 

create jobs, and accelerate economic growth, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 11, 2021 

Mr. PHILLIPS introduced the following bill; which was referred to the 

Committee on Financial Services 

A BILL 

To establish the Innovation and Startups Equity Investment 

Program in the Department of the Treasury, through 

which the Secretary of the Treasury shall allocate money 

to certain States to assist high-potential scalable startups 

access venture capital to commercialize innovations, create jobs, and accelerate economic growth, 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 ‘‘New Business Preser5 vation Act’’. 


pamtmann on DSKBC07HB2PROD with BILLS
2 

•HR 1020 IH

1 SEC. 2. DEFINITIONS. 

2 In this Act: 

3 (1) APPROVED STATE PROGRAM.—The term 

4 ‘‘approved State program’’ means a State program 

5 that is approved by the Secretary in accordance with 

6 the standards established under section 3(b)(1). 

7 (2) COVERED INVESTMENT.—The term ‘‘cov8 ered investment’’ means an equity investment in a 

9 startup using amounts made available to carry out 

10 the covered programs. 

11 (3) COVERED PROGRAMS.—The term ‘‘covered 

12 programs’’ means the Program and the program 

13 carried out under section 4. 

14 (4) EQUITY INVESTMENT.—The term ‘‘equity 

15 investment’’— 

16 (A) means an investment for an ownership 

17 interest in an entity, the financial return with 

18 respect to which is principally aligned with the 

19 financial return of the plurality of ownership in20 terests in the entity; and 

21 (B) includes a debt instrument that can be 

22 converted to an equity ownership interest in an 

23 entity based on future events. 

24 (5) EXIT.—The term ‘‘exit’’, with respect to a 

25 startup in which there is a covered investment, 

26 means— 


pamtmann on DSKBC07HB2PROD with BILLS
3 

•HR 1020 IH

1 (A) the acquisition of the startup; 

2 (B) after an initial public offering with re3 spect to the startup, the sale of a share of the 

4 startup that was obtained through the covered 

5 investment; or 

6 (C) the voluntary purchase of ownership 

7 interests by the startup, investors, or existing 

8 shareholders. 

9 (6) FEDERAL CONTRIBUTION.—The term ‘‘Fed10 eral contribution’’ means a contribution made— 

11 (A) by a participating State to, or for the 

12 account of, an approved State program; and 

13 (B) with Federal funds allocated to the 

14 participating State by the Secretary. 

15 (7) FOLLOW-ON INVESTMENT.—The term ‘‘fol16 low-on investment’’ means a subsequent equity in17 vestment in a startup in which there was originally 

18 a separate and distinct equity investment under— 

19 (A) a program carried out under the State 

20 Small Business Credit Initiative Act of 2010 

21 (12 U.S.C. 5701 et seq.); or 

22 (B) the Program. 

23 (8) MARKET RATE MANAGEMENT FEE AND

24 PROFIT INTEREST.—The term ‘‘market rate man25 agement fee and profit interest’’ means the usual 


pamtmann on DSKBC07HB2PROD with BILLS
4 

•HR 1020 IH

1 and customary compensation structure paid to fund 

2 managers for fund investment management services 

3 under agreements with private sector limited part4 ners. 

5 (9) PARTICIPATING STATE.—The term ‘‘partici6 pating State’’ means a State that participates in the 

7 Program after having satisfied the approval criteria 

8 under section 3(c). 

9 (10) PROGRAM.—The term ‘‘Program’’ means 

10 the Innovation and Startups Equity Investment Pro11 gram established under section 3(a). 

12 (11) QUALIFYING AREA.—The term ‘‘qualifying 

13 area’’ means an area of the United States outside of 

14 the major venture capital centers, as determined in 

15 the rule making conducted by the Secretary under 

16 section 3(e). 

17 (12) RULE; RULE MAKING.—The terms ‘‘rule’’ 

18 and ‘‘rule making’’ have the meanings given those 

19 terms in section 551 of title 5, United States Code. 

20 (13) SECRETARY.—The term ‘‘Secretary’’ 

21 means the Secretary of the Treasury. 

22 (14) STARTUP.—The term ‘‘startup’’ means a 

23 business entity that— 

24 (A) has been in existence for less than 10 

25 years; 


pamtmann on DSKBC07HB2PROD with BILLS
5 

•HR 1020 IH

1 (B) has the intention or potential to deliver 

2 high returns on investment; and 

3 (C) has an annual revenue of not more 

4 than $25,000,000. 

5 (15) STATE.— 

6 (A) IN GENERAL.—The term ‘‘State’’ 

7 means— 

8 (i) a State of the United States; 

9 (ii) the District of Columbia; 

10 (iii) the Commonwealth of Puerto 

11 Rico; 

12 (iv) the United States Virgin Islands; 

13 (v) Guam; 

14 (vi) American Samoa; and 

15 (vii) the Commonwealth of the North16 ern Mariana Islands. 

17 (B) RULE OF CONSTRUCTION.—The Com18 monwealth of Puerto Rico, the United States 

19 Virgin Islands, Guam, American Samoa, and 

20 the Commonwealth of the Northern Mariana Is21 lands shall collectively be considered to be 1 

22 State for the purposes of this Act. 

23 (16) STATE PROGRAM.—The term ‘‘State pro24 gram’’ means a program established by a State to 

25 provide equity investment in startups or venture 


pamtmann on DSKBC07HB2PROD with BILLS
6 

•HR 1020 IH

1 capital funds that are headquartered in qualifying 

2 areas, without regard to whether those qualifying 

3 areas are located in the State. 

4 (17) VENTURE CAPITAL FUND.—The term 

5 ‘‘venture capital fund’’ has the meaning given the 

6 term in section 275.203(l)–1 of title 17, Code of 

7 Federal Regulations, or any successor regulation. 

8 SEC. 3. ISEI PROGRAM. 

9 (a) ESTABLISHMENT.—There is established in the 

10 Department of the Treasury the Innovation and Startups 

11 Equity Investment Program— 

12 (1) which shall be administered by the Sec13 retary; and 

14 (2) under which— 

15 (A) the Secretary shall, in accordance with 

16 the provisions of this section, allocate to partici17 pating States the amount appropriated under 

18 section 7(a)(1); 

19 (B) participating States to which funds are 

20 allocated under subparagraph (A) shall, 

21 through approved State programs, provide eq22 uity investment in startups; and 

23 (C) money (including securities) returned 

24 to States after exits with respect to the invest25 ments described in subparagraph (B) shall be 


pamtmann on DSKBC07HB2PROD with BILLS
7 

•HR 1020 IH

1 reinvested through an approved State program 

2 or follow-on investments, as further provided in 

3 section 5. 

4 (b) DUTIES OF THE SECRETARY.—In administering 

5 the Program, the Secretary shall— 

6 (1) establish minimum standards for a State 

7 program to be considered an approved State pro8 gram; 

9 (2) provide technical assistance to States for 

10 designing State programs and implementing ap11 proved State programs; 

12 (3) disseminate information relating to best 

13 practices with respect to the design and implementa14 tion described in paragraph (2); 

15 (4) perform any managerial or administrative 

16 function that is necessary to maintain the integrity 

17 of the Program; and 

18 (5) provide oversight of the Program, including 

19 by reviewing whether each approved State program 

20 is in compliance with the requirements of the Pro21 gram. 

22 (c) APPROVAL CRITERIA.— 

23 (1) PARTICIPATING STATES.—A State may be24 come a participating State if— 

25 (A) the State— 


pamtmann on DSKBC07HB2PROD with BILLS
8 

•HR 1020 IH

1 (i) designates a specific department or 

2 agency of the State, or an entity supported 

3 by the State, to implement and administer 

4 a State program of the State; or 

5 (ii) has a contractual arrangement— 

6 (I) with a participating State 

7 that has an approved State program; 

8 and 

9 (II) through which the partici10 pating State described in subclause 

11 (I) will implement and administer the 

12 State program of the State; 

13 (B) the State takes all legal actions nec14 essary to enable the entity that, under subpara15 graph (A), will implement the State program of 

16 the State to carry out that implementation; 

17 (C) the State submits to the Secretary an 

18 application described in paragraph (2)(B) dur19 ing a time period to be established by the Sec20 retary; and 

21 (D) the State and the Secretary enter into 

22 an allocation agreement that— 

23 (i) satisfies the requirements of this 

24 Act, including the requirement under sec25 tion 5(a)(2)(A); 


pamtmann on DSKBC07HB2PROD with BILLS
9 

•HR 1020 IH

1 (ii) provides that the State program 

2 established by the State will comply with 

3 any standards established by the Secretary 

4 in carrying out this Act; 

5 (iii) establishes internal control, com6 pliance, and reporting requirements estab7 lished by the Secretary and any other 

8 terms and conditions that are necessary to 

9 carry out the Program, including an agree10 ment by the State to permit the Secretary 

11 to audit the State program established by 

12 the State; 

13 (iv) requires that, not later than 180 

14 days after the date on which the State and 

15 the Secretary enter into the agreement (or 

16 a later date if the Secretary determines 

17 that later date to be appropriate), the 

18 State program of the State is able to make 

19 the type of equity investments con20 templated by this Act; and 

21 (v) includes an agreement by the 

22 State to submit to the Secretary any re23 ports required under the Program, includ24 ing those required under section 6. 

25 (2) APPROVED STATE PROGRAMS.— 


pamtmann on DSKBC07HB2PROD with BILLS
10 

•HR 1020 IH

1 (A) MODELS.—The Secretary may certify 

2 a State program that uses either of the fol3 lowing structures as an approved State pro4 gram: 

5 (i) A program in which a State-sup6 ported entity or a private investment firm 

7 (referred to in this clause as the ‘‘man8 ager’’) directly invests in startups in ac9 cordance with the following requirements: 

10 (I) A State agency may not serve 

11 as the manager of the program. 

12 (II) Any investment made under 

13 the program shall have not less than 

14 50 percent of the investment funded 

15 using nongovernment sources. 

16 (III) The manager under the pro17 gram may charge a market rate an18 nual management fee. 

19 (IV) The State may allow the 

20 manager under the program to receive 

21 a market-rate profit share. 

22 (V) The manager under the pro23 gram shall actively— 


pamtmann on DSKBC07HB2PROD with BILLS
11 

•HR 1020 IH

1 (aa) pursue equity invest2 ments in startups headquartered 

3 in a qualifying area; 

4 (bb) educate minority-owned 

5 and women-owned startups re6 garding the process through 

7 which the manager makes equity 

8 investments; and 

9 (cc) pursue equity invest10 ments in startups described in 

11 item (bb). 

12 (ii) A program in which a State-sup13 ported entity or a private investment firm 

14 establishes a fund to invest in other invest15 ment funds in accordance with the fol16 lowing requirements: 

17 (I) The fund established under 

18 the program may charge a market 

19 rate management fee paid by the ad20 ministrator of the program with pro21 gram funds and receive a market rate 

22 management fee and profit interest. 

23 (II) If the State has an above av24 erage per capita venture capital mar25 ket share, the State shall prioritize alVerDate Sep 11 2014 00:25 Mar 09, 2021 Jkt 019200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H1020.IH H1020

pamtmann on DSKBC07HB2PROD with BILLS
12 

•HR 1020 IH

1 locations by the fund established 

2 under the program to funds 

3 headquartered in a qualifying area, 

4 managed by first-time managers, mili5 tary veterans, women, or minorities. 

6 (III) The allocations made by the 

7 fund established under the program 

8 shall be in an amount that is not 

9 more than 20 percent of the capital 

10 raised by that fund, except that, with 

11 respect to a recipient fund described 

12 in subclause (II), that amount shall be 

13 50 percent. 

14 (B) APPLICATION.—A State that wishes to 

15 have a State program of the State certified by 

16 the Secretary as an approved State program 

17 shall submit to the Secretary an application 

18 that contains— 

19 (i) a venture capital supply and acces20 sibility study listing, which shall include— 

21 (I) a list of active, as of the date 

22 on which the application is submitted, 

23 venture capital funds in the State 

24 with capital under management, seg25 regated by funds that actively invest 


pamtmann on DSKBC07HB2PROD with BILLS
13 

•HR 1020 IH

1 in startups and funds that no longer 

2 actively invest in startups; 

3 (II) sources of equity investments 

4 in startups; and 

5 (III) a summary of investment 

6 activity in the State from accredited 

7 investors that are not venture capital 

8 funds; 

9 (ii) for the 10-year period preceding 

10 the date on which the State submits the 

11 application, a list of each State-sponsored 

12 program, the intent of which is to stimu13 late equity investment in startups, includ14 ing the policies implemented under each 

15 such program and the reported results of 

16 each such program; 

17 (iii) a list of active, as of the date on 

18 which the application is submitted, State 

19 pension fund investments in venture cap20 ital funds and similar types of investments; 

21 (iv) a final report on outcomes in the 

22 State under each program established 

23 under the State Small Business Credit Ini24 tiative Act of 2010 (12 U.S.C. 5701 et 


pamtmann on DSKBC07HB2PROD with BILLS
14 

•HR 1020 IH

1 seq.) (referred to in this subparagraph as 

2 the ‘‘Initiative’’), including— 

3 (I) the total amount expended in 

4 direct support of small businesses 

5 under the Initiative in the State; 

6 (II) the total amount of private 

7 capital leverage generated by each ap8 proved program under the Initiative in 

9 the State; 

10 (III) the amount of funds made 

11 available under the Initiative in the 

12 State that were not ultimately ex13 pended, if any; 

14 (IV) the amount of capital re15 turned to the State in the form of in16 vestment returns or loan repayments 

17 under the Initiative; and 

18 (V) the actual uses of residual 

19 funds generated from the Initiative in 

20 the State; 

21 (v) a policy regarding the resolution of 

22 conflicts of interest with respect to the 

23 State program, including a comparison 

24 with that policy for the Department of the 

25 Treasury with respect to the Initiative; and 


pamtmann on DSKBC07HB2PROD with BILLS
15 

•HR 1020 IH

1 (vi) an identification of which model 

2 described in subparagraph (A) the State 

3 intends to use for the State program of the 

4 State. 

5 (C) REVIEW OF APPLICATION.—Not later 

6 than 90 days after the date on which the Sec7 retary receives an application submitted by a 

8 State under subparagraph (B), the Secretary 

9 shall approve the application if the application 

10 satisfies all applicable requirements. 

11 (D) ADDITIONAL REQUIREMENTS.— 

12 (i) ABOVE AVERAGE VENTURE CAP13 ITAL STATES.—With respect to a State 

14 with an above average per capita venture 

15 capital market share, a State program of 

16 the State shall require that— 

17 (I) investments may be made in a 

18 startup only if the startup is— 

19 (aa) majority-owned or ma20 jority-managed by individuals 

21 who are women, minorities, or 

22 military veterans; or 

23 (bb) located in an area that 

24 is rural or that is a low-income 

25 community (as defined in section 


pamtmann on DSKBC07HB2PROD with BILLS
16 

•HR 1020 IH

1 45D(e) of the Internal Revenue 

2 Code of 1986); and 

3 (II) investments may be made in 

4 a venture capital fund only if a major5 ity of the partners of the fund are 

6 women, minorities, or military vet7 erans. 

8 (ii) OTHER STATES.—With respect to 

9 a State not described under clause (i): 

10 (I) REPORTING REQUIRE11 MENTS.—The State shall issue an an12 nual report to the Secretary on diver13 sity representation within the State’s 

14 venture capital industry. 

15 (II) ENTITY AND FIRM REQUIRE16 MENTS.—Each State-supported entity 

17 or private investment firm making in18 vestments under the State program 

19 shall establish an investment com20 mittee— 

21 (aa) that informs, and con22 tributes to, the process of invest23 ing in startups or venture funds; 

24 and 


pamtmann on DSKBC07HB2PROD with BILLS
17 

•HR 1020 IH

1 (bb) the membership of 

2 which is at least 50 percent 

3 women or minorities. 

4 (3) DURATION OF APPROVAL.— 

5 (A) IN GENERAL.—Except as provided in 

6 subparagraph (C), a State program that the 

7 Secretary certifies as an approved State pro8 gram under this subsection shall— 

9 (i) remain so certified for the 5-year 

10 period beginning on the date on which the 

11 Secretary certifies the program; and 

12 (ii) during the 5-year period described 

13 in clause (i), remain eligible to receive allo14 cations under the Program, except as oth15 erwise expressly provided in this section. 

16 (B) RE-CERTIFICATION.—After the end of 

17 the 5-year period described in subparagraph 

18 (A)(i) with respect to an approved State pro19 gram, the Secretary may re-certify the approved 

20 State program after obtaining from the applica21 ble participating State any materials that the 

22 Secretary may require. 

23 (C) EXCEPTION FOR MATERIAL

24 CHANGES.—If, during the 5-year period de25 scribed in subparagraph (A)(i) with respect to 


pamtmann on DSKBC07HB2PROD with BILLS
18 

•HR 1020 IH

1 an approved State program, there are material 

2 changes made to the structure or administra3 tion of the approved State program, the appli4 cable participating State, in order to maintain 

5 the certification for the approved State pro6 gram, shall submit to the Secretary an updated 

7 application that contains any materials that the 

8 Secretary may require. 

9 (d) ALLOCATIONS.— 

10 (1) FORMULA.— 

11 (A) IN GENERAL.—Subject to subpara12 graph (B), the amount of an allocation to a 

13 participating State under the Program shall be 

14 calculated as follows: 

15 (i) Divide the total population of the 

16 State by the total population of the United 

17 States. 

18 (ii) Multiply the total amount appro19 priated under section 7(a)(1) by the 

20 quotient obtained under subclause (I) with 

21 respect to the State. 

22 (B) MINIMUM ALLOCATION.—The alloca23 tion to a participating State under the Program 

24 shall be in an amount that is not less than 1 


pamtmann on DSKBC07HB2PROD with BILLS
19 

•HR 1020 IH

1 percent of the total amount appropriated under 

2 section 7(a)(1). 

3 (2) DELIVERY.— 

4 (A) IN GENERAL.—Subject to the other 

5 provisions of this paragraph, the Secretary 

6 shall— 

7 (i) apportion the amount allocated to 

8 a participating State under this subsection 

9 into thirds; 

(ii) transfer the first 1 10 ⁄3 described in 

11 clause (i) to a participating State not later 

12 than 30 days after the date on which the 

13 Secretary approves the State program of 

14 the State; and 

(iii) transfer each successive 1 15 ⁄3 de16 scribed in clause (i) to a participating 

17 State when the State has certified to the 

18 Secretary that the State has expended, 

19 transferred, or obligated 80 percent of the 

most recently allocated 1 20 ⁄3 for Federal con21 tributions. 

22 (B) USE OF AMOUNTS.—Each amount al23 located to a participating State under this sub24 section shall remain available to the State— 


pamtmann on DSKBC07HB2PROD with BILLS
20 

•HR 1020 IH

1 (i) for making Federal contributions; 

2 and 

(ii) in the case of each 1 3 ⁄3 transferred 

4 under subparagraph (A), for paying ad5 ministrative costs incurred by the State in 

6 implementing an approved State program 

7 of the State in an amount that is not more 

than 5 percent of that 1 8 ⁄3 amount. 

9 (C) WITHHOLDING.—The Secretary may 

withhold a 1 10 ⁄3 transfer under subparagraph (A) 

11 pending the results of a financial audit by the 

12 Secretary of the applicable approved State pro13 gram. 

14 (D) EXCEPTION.—The Secretary may, in 

15 the discretion of the Secretary, transfer the full 

16 amount allocated to a participating State under 

17 this subsection in a single transfer if the State 

18 submits to the Secretary an application that 

19 demonstrates the need for such a method of 

20 transfer. 

21 (3) REMAINING FUNDS.—If, after allocating 

22 funds to participating States under this subsection, 

23 there are amounts remaining from the amounts 

24 made available to carry out the Program, the SecVerDate Sep 11 2014 00:25 Mar 09, 2021 Jkt 019200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 E:\BILLS\H1020.IH H1020

pamtmann on DSKBC07HB2PROD with BILLS
21 

•HR 1020 IH

1 retary shall allocate the remaining amounts in ac2 cordance with paragraphs (1) and (2). 

3 (e) RULES.—Not later than 90 days after the date 

4 of enactment of this Act, the Secretary shall initiate a rule 

5 making to issue rules regarding the administration of the 

6 Program, which shall include the establishment of the 

7 minimum standards described in subsection (b)(1). 

8 SEC. 4. FOLLOW-ON INVESTMENTS. 

9 (a) IN GENERAL.—The Secretary shall allocate the 

10 amount appropriated under section 7(a)(2) to approved 

11 State programs to facilitate follow-on investments. 

12 (b) PROCESS.—To carry out the allocations under 

13 this section, the Secretary shall manage a competitive 

14 process, facilitated by an expert consultant from the pri15 vate sector, to award funding to approved State programs 

16 to provide follow-on investments. 

17 (c) AMOUNT.—A follow-on investment under sub18 section (b) shall be in an amount that is not less than 

19 $5,000,000 and not more than $50,000,000. 

20 (d) FEES.—With respect to the expert consultant de21 scribed in subsection (b)— 

22 (1) the Secretary may pay management fees to 

23 the consultant in an amount that is not more than 

24 0.5 percent of the co-investment funds managed by 


pamtmann on DSKBC07HB2PROD with BILLS
22 

•HR 1020 IH

1 the consultant over the term of the program under 

2 this section; and 

3 (2) the consultant may receive not more than 

4 10 percent of the profit interest earned by the 

5 States participating in the program under this sec6 tion from the proceeds of successful follow-on invest7 ments. 

8 (e) RULES.—Not later than 180 days after the date 

9 of enactment of this Act, the Secretary shall issue rules— 

10 (1) to determine the eligibility of States that 

11 wish to participate in the program established under 

12 this section; 

13 (2) to provide the manner in which States may 

14 make the follow-on investments described in this sec15 tion; 

16 (3) that shall permit multiple States to work to17 gether to invest in startups; and 

18 (4) to determine an appropriate time to make 

19 the allocations required under this section with re20 spect to follow-on investments in startups for which 

21 the original equity investments were made under the 

22 Program. 

23 SEC. 5. EXITS AND REPAYMENT. 

24 (a) EXITS.— 


pamtmann on DSKBC07HB2PROD with BILLS
23 

•HR 1020 IH

1 (1) IN GENERAL.—If a State to which an allo2 cation is made under a covered program receives 

3 funds from an exit with respect to a covered invest4 ment, the State shall use those funds to further in5 vest in startups. 

6 (2) ENFORCEMENT.—The Secretary shall— 

7 (A) require that each allocation agreement 

8 described in section 3(c)(1)(D) include the re9 quirement under paragraph (1); and 

10 (B) in any audit conducted of the State by 

11 the Secretary under a covered program, confirm 

12 that there is compliance with respect to the re13 quirement under paragraph (1). 

14 (b) FAILURE TO REINVEST.—If a State to which an 

15 allocation is made under a covered program receives funds 

16 from an exit with respect to a covered investment and fails 

17 to comply with the requirement to reinvest investment re18 turns under this Act, that State shall repay to the Sec19 retary the amount of that allocation, including any real20 ized gains. 

21 SEC. 6. REPORTING. 

22 (a) QUARTERLY REPORTS FROM STATES TO THE

23 SECRETARY.— 

24 (1) IN GENERAL.—Not later than 60 days after 

25 the first day of each calendar quarter that begins 


pamtmann on DSKBC07HB2PROD with BILLS
24 

•HR 1020 IH

1 after the date on which the Secretary issues final 

2 rules in the rule making initiated under section 3(e), 

3 each participating State that has received an alloca4 tion under the Program and each State to which 

5 funding is awarded under section 4(b) shall submit 

6 to the Secretary a report regarding the use, during 

7 the quarter preceding the quarter in which the State 

8 submits the report, of funds received under the ap9 plicable covered program. 

10 (2) CONTENTS.—In each report that a State is 

11 required to submit under paragraph (1), the State 

12 shall, with respect to the quarter covered by the re13 port— 

14 (A) indicate the total amount of funds dur15 ing the quarter that the State received under 

16 the covered programs and expended; and 

17 (B) contain a certification by the State 

18 that— 

19 (i) all of the information contained in 

20 the report is accurate; 

21 (ii) funds allocated to the State under 

22 the covered programs continue to be avail23 able and legally committed to an approved 

24 State program of the State, except for 

25 funds already expended by the State in 


pamtmann on DSKBC07HB2PROD with BILLS
25 

•HR 1020 IH

1 carrying out the approved State program; 

2 and 

3 (iii) the State is carrying out the ap4 proved State program of the State in ac5 cordance with this Act and rules issued 

6 under this Act. 

7 (b) ANNUAL REPORTS FROM STATES TO THE SEC8 RETARY.—Not later than June 1 of each year in which 

9 the covered programs are in effect, each participating 

10 State that has received an allocation under the Program 

11 and each State to which funding is awarded under section 

12 4(b) shall submit to the Secretary an annual report with 

13 respect to the year preceding the year in which the report 

14 is submitted, which shall include, for the year covered by 

15 the report— 

16 (1) the number of startups supported by an in17 vestment made through an approved State program 

18 of the State; 

19 (2) the total number of investments made 

20 through an approved State program of the State; 

21 (3) the amount of private capital leverage for 

22 each covered investment made through an approved 

23 State program of the State and collectively by the 

24 State under the covered programs and the source of 

25 any private capital match; 


pamtmann on DSKBC07HB2PROD with BILLS
26 

•HR 1020 IH

1 (4) a breakdown of investments made through 

2 an approved State program of the State by, with re3 spect to the startups in which the investments were 

4 made, industry type, investment size, age of entity, 

5 annual sales, geographic location (which shall be in6 dicated by zip code), and number of employees; 

7 (5) the amount and percentage of funds in8 vested through an approved State program of the 

9 State that are invested in minority- and women10 owned startups; and 

11 (6) any other information that the Secretary, in 

12 the sole discretion of the Secretary, may require to 

13 carry out the purposes of the covered programs. 

14 (c) ANNUAL REPORTS FROM THE SECRETARY TO

15 CONGRESS.— 

16 (1) REPORTING REQUIREMENT.— 

17 (A) IN GENERAL.—The Secretary shall 

18 submit to the Committee on Banking, Housing, 

19 and Urban Affairs of the Senate and the Com20 mittee on Financial Services of the House of 

21 Representatives an annual report that summa22 rizes information reported to the Secretary by 

23 States that details, for the year covered by the 

24 report, outcomes from investments made pursuVerDate Sep 11 2014 00:25 Mar 09, 2021 Jkt 019200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\H1020.IH H1020

pamtmann on DSKBC07HB2PROD with BILLS
27 

•HR 1020 IH

1 ant to funds allocated under the covered pro2 grams. 

3 (B) LENGTH OF REQUIREMENT.—The Sec4 retary shall submit the annual report required 

5 under subparagraph (A) until the later of— 

6 (i) the year that is 12 years after the 

7 date of enactment of this Act; or 

8 (ii) the year in which no investment is 

9 made through either of the covered pro10 grams. 

11 (2) RESERVE OF AMOUNTS.—Of amounts ap12 propriated to carry out the covered programs under 

13 section 7(a)(1), the Secretary may reserve a percent14 age of the amounts in order to carry out paragraph 

15 (1). 

16 SEC. 7. APPROPRIATIONS; DEPOSITS. 

17 (a) DIRECT APPROPRIATION.—There are appro18 priated, out of monies in the Treasury not otherwise ap19 propriated, $2,000,000,000 as follows: 

20 (1) $1,500,000,000 to carry out the Program, 

21 including any administrative costs incurred in car22 rying out the Program. 

23 (2) $500,000,000 to carry out the follow-on in24 vestments program established under section 4, inVerDate Sep 11 2014 00:25 Mar 09, 2021 Jkt 019200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\H1020.IH H1020

pamtmann on DSKBC07HB2PROD with BILLS
28 

•HR 1020 IH

1 cluding any administrative costs incurred in carrying 

2 out that program. 

3 (b) DEPOSITS.—In addition to the amount appro4 priated under subsection (a), the Secretary may, in ac5 cordance with the requirements of this Act, expend any 

6 funds repaid to the Secretary under section 5(b). 

7 (c) AVAILABILITY OF FUNDS.— 

8 (1) IN GENERAL.—The amount appropriated 

9 under subsection (a) shall remain available, without 

10 fiscal year limitation, until expended. 

11 (2) AVAILABILITY OF CERTAIN DEPOSITS.—Any 

12 amounts repaid to the Secretary described in sub13 section (b) shall remain available, without fiscal year 

14 limitation, until expended. 

Æ 


pamtmann on DSKBC07HB2PROD with BILLS