SBIC Advisory Committee Act of 2023

To require the Administrator of the Small Business Administration to establish an SBIC Advisory Committee, and for other purposes. 1. Short title This Act may be cited as the SBIC Advisory Committee Act of 2023 2. SBIC Advisory Committee (a) Definitions In this section— (1) the terms Administration Administrator (2) the term Advisory Committee (3) the term covered Members (A) the Committee on Small Business and Entrepreneurship of the Senate; and (B) the Committee on Small Business of the House of Representatives; (4) the terms licensee small business investment company underlicensed State 15 U.S.C. 662 (5) the term low-income community section 45D(e) (6) the term rural area (7) the terms small business concern small business concern owned and controlled by veterans small business concern owned and controlled by women 15 U.S.C. 632 (8) the term socially or economically disadvantaged individual 15 U.S.C. 637(a) (9) the term underfinanced State (10) the term underserved community (A) a HUBZone, as defined in section 31(b) of the Small Business Act ( 15 U.S.C. 657a(b) (B) a community that has been designated as an empowerment zone or an enterprise community under section 1391 (C) a community that has been designated as a promise zone by the Secretary of Housing and Urban Development; and (D) a community that has been designated as a qualified opportunity zone under section 1400Z–1 (b) Establishment The Administrator shall establish an SBIC Advisory Committee to convene outside experts to advise on the small business investment program under title III of the Small Business Investment Act of 1958 ( 15 U.S.C. 681 et seq. (c) Composition (1) Membership The Advisory Committee shall be composed of 16 members appointed by the Administrator as follows: (A) The Associate Administrator of the Office of Investment and Innovation of the Administration, or another designee of the Associate Administrator as determined by the Administrator. (B) 7 members with competence, interest, or knowledge of the small business investment program under title III of the Small Business Investment Act of 1958 ( 15 U.S.C. 681 et seq. (i) not fewer than 3 shall have a demonstrated record of expertise in investing in— (I) low-income communities; (II) communities that have been designated as qualified opportunity zones under section 1400Z–1 (III) businesses primarily engaged in research and development; (IV) manufacturers; (V) businesses primarily owned or controlled by individuals in underserved communities before receiving capital from the licensee; (VI) rural areas; or (VII) underfinanced States; and (ii) not fewer than 1 shall be a representative from a trade association for the small business investment program under title III of the Small Business Investment Act of 1958 ( 15 U.S.C. 681 et seq. (C) 8 members appointed by the Administrator as follows: (i) 2 members shall be selected from among the individuals in the list submitted by the Chair of the Committee on Small Business and Entrepreneurship of the Senate under paragraph (2). (ii) 2 members shall be selected from among the individuals in the list submitted by the Ranking Member of the Committee on Small Business and Entrepreneurship of the Senate under paragraph (2). (iii) 2 members shall be selected from among the individuals in the list submitted by the Chair of the Committee on Small Business of the House of Representatives under paragraph (2). (iv) 2 members shall be selected from among the individuals in the list submitted by the Ranking Member of the Committee on Small Business of the House of Representatives under paragraph (2). (2) Recommendations Not later than 30 days after the date of enactment of this Act, each of the covered Members shall provide to the Administrator a list of 3 candidates for membership on the Advisory Committee, who shall be individuals who have no conflict of interest in the small business investment program under title III of the Small Business Investment Act of 1958 ( 15 U.S.C. 681 et seq. (A) a relevant industry trade association; (B) the investment industry with expertise in pensions, endowments, and other non-banking institutions; (C) academia with expertise in the investment industry; or (D) a nonprofit institution, including a nonprofit institution that serves any of the entities described in subclauses (I) through (VII) of paragraph (1)(B)(i). (3) Private sector members Not fewer than 2 and not more than 4 of the members of the Advisory Committee shall be investors in the private sector who— (A) invest in small business concerns; and (B) as of the date of appointment, do not participate in the small business investment program under title III of the Small Business Investment Act of 1958 ( 15 U.S.C. 681 et seq. (4) Chairperson The Chairperson of the Advisory Committee shall be the member of the Advisory Committee appointed under paragraph (1)(A). (5) Period of appointment Members of the Advisory Committee shall be appointed for the life of the Advisory Committee. (6) Vacancies Any vacancy in the Advisory Committee shall be filled in the same manner as the original appointment. (d) Deadline for appointment Not later than 60 days after the date on which the covered Members provide the lists to the Administrator under subsection (c)(2), the Administrator shall— (1) appoint the members of the Advisory Committee; and (2) submit to Congress a list of the members so appointed. (e) Duties The Advisory Committee shall provide advice and recommendations to the Administrator concerning— (1) policy and program development and other matters of significance concerning activities under the Small Business Act ( 15 U.S.C. 631 et seq. 15 U.S.C. 661 et seq. (2) incentives for small business investment companies to— (A) invest and locate in underlicensed States and underfinanced States; and (B) invest in small business concerns, including those owned and controlled by socially or economically disadvantaged individuals, small business concerns owned and controlled by veterans, and small business concerns owned and controlled by women; (3) metrics of success, and benchmarks for success, with respect to the goals described in this section; and (4) the impact of the small business investment program under title III of the Small Business Investment Act of 1958 ( 15 U.S.C. 681 et seq. (f) Report Not later than 18 months after the date on which the Administrator establishes the Advisory Committee under subsection (b), the Advisory Committee shall submit to the Administrator, the Committee on Small Business and Entrepreneurship of the Senate, and the Committee on Small Business of the House of Representatives a report that includes the recommendations of the Advisory Committee described in subsection (e). (g) Termination The Advisory Committee shall terminate on the date on which the Advisory Committee submits the report required under subsection (f).

Summary: SBIC Advisory Committee Act of 2023 This bill requires the Small Business Administration (SBA) to establish an advisory committee to develop recommendations for expanding SBA assistance provided through Small Business Investment Companies (SBICs). SBICs are privately owned companies, licensed and regulated by the SBA, which invest in small businesses through debt and equity. Composed in part of representatives of and partners with small businesses in low-income communities and rural areas, the advisory committee must make recommendations for SBICs to invest in (1) underlicensed and underfinanced states; and (2) small businesses owned by socially or economically disadvantaged individuals, veterans, and women.