II 

110TH CONGRESS 

1ST SESSION S. 1662 

To amend the Small Business Investment Act of 1958 to reauthorize the 

venture capital program, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 19, 2007 

Mr. KERRY (for himself and Ms. SNOWE) introduced the following bill; which 

was read twice and referred to the Committee on Small Business and Entrepreneurship 

A BILL 

To amend the Small Business Investment Act of 1958 to 

reauthorize the venture capital program, 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 ‘‘Small Business Ven5 ture Capital Act of 2007’’. 

6 SEC. 2. REAUTHORIZATION. 

7 Section 20 of the Small Business Act (15 U.S.C. 631 

8 note) is amended by inserting after subsection (e) the fol9 lowing: 


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1 ‘‘(f) SMALL BUSINESS VENTURE CAPITAL.—For the 

2 programs authorized under part A of title III of the Small 

3 Business Investment Act of 1958 (15 U.S.C. 681 et seq.), 

4 the Administrator is authorized to make— 

5 ‘‘(1) $500,000,000 in purchases of participating 

6 securities for each of fiscal years 2007 through 

7 2010; and 

8 ‘‘(2)(A) $2,000,000,000 in guarantees of deben9 tures for fiscal year 2007; 

10 ‘‘(B) $2,250,000,000 in guarantees of deben11 tures for fiscal year 2008; 

12 ‘‘(C) $2,500,000,000 in guarantees of deben13 tures for fiscal year 2009; and 

14 ‘‘(D) $2,775,000,000 in guarantees of deben15 tures for fiscal year 2010.’’. 

16 SEC. 3. LEVERAGE. 

17 (a) IN GENERAL.—Section 303(b)(2) of the Small 

18 Business Investment Act of 1958 (15 U.S.C. 683(b)(2)) 

19 is amended to read as follows: 

20 ‘‘(2) MAXIMUM LEVERAGE.— 

21 ‘‘(A) IN GENERAL.—The maximum 

22 amount of outstanding leverage made available 

23 to any 1 company licensed under section 301(c) 

24 may not exceed the lesser of— 

25 ‘‘(i) 300 percent of private capital; or 


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1 ‘‘(ii) $150,000,000. 

2 ‘‘(B) MULTIPLE LICENSES UNDER COM3 MON CONTROL.—The maximum amount of out4 standing leverage made available to 2 or more 

5 companies licensed under section 301(c) that 

6 are commonly controlled (as determined by the 

7 Administrator) may not exceed $225,000,000. 

8 ‘‘(C) INVESTMENTS IN WOMEN-OWNED

9 AND MINORITY-OWNED BUSINESSES AND IN

10 LOW-INCOME GEOGRAPHIC AREAS.— 

11 ‘‘(i) IN GENERAL.—The maximum 

12 amount of outstanding leverage made 

13 available to— 

14 ‘‘(I) any 1 company described in 

15 clause (ii) may not exceed the lesser 

16 of— 

17 ‘‘(aa) 300 percent of private 

18 capital; or 

19 ‘‘(bb) $175,000,000; and 

20 ‘‘(II) 2 or more companies de21 scribed in clause (ii) that are com22 monly controlled (as determined by 

23 the Administrator) may not exceed 

24 $250,000,000. 


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1 ‘‘(ii) APPLICABILITY.—A company de2 scribed in this clause is a company licensed 

3 under section 301(c) that certifies in writ4 ing that not less than 50 percent of the 

5 dollar amount of investments of that com6 pany shall be made in companies that, 

7 prior to that investment, are owned by 

8 women or minorities (as determined by the 

9 Administrator) or are located in a low-in10 come geographic area (as that term is de11 fined in section 351). 

12 ‘‘(iii) EXCEPTION.—The Adminis13 trator may, on a case-by-case basis, impose 

14 such additional terms and conditions as 

15 the Administrator determines to be appro16 priate to minimize the risk of loss to the 

17 Administration in the event of a default.’’. 

18 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

19 Section 303(b) of the Small Business Investment Act of 

20 1958 (15 U.S.C. 683(b)) is amended by striking para21 graph (4). 

22 SEC. 4. INVESTMENTS IN SMALLER ENTERPRISES. 

23 Section 303(d) of the Small Business Investment Act 

24 of 1958 (15 U.S.C. 683(d)) is amended to read as follows: 


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1 ‘‘(d) INVESTMENTS IN SMALLER ENTERPRISES.— 

2 The Administrator shall require each licensee, as a condi3 tion of an application for leverage, to certify in writing 

4 that not less than 25 percent of the aggregate dollar 

5 amount of financings of that licensee shall be provided to 

6 smaller enterprises.’’. 

7 SEC. 5. PRIVATE CAPITAL. 

8 (a) IN GENERAL.—Section 103(9)(A)(ii) of the Small 

9 Business Investment Act of 1958 (15 U.S.C. 

10 662(9)(A)(ii)) is amended by inserting ‘‘, for any company 

11 licensed under section 301(c) on or after October 1, 

12 2004,’’ before ‘‘leverage shall not be funded based on such 

13 commitments’’. 

Æ 


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