SEC. 2. SBIC MAXIMUM LEVERAGE EXCLUSION. 
(a) IN GENERAL.—Section 303(b)(2) of the Small 
Business Investment Act of 1958 (15 U.S.C. 683(b)(2)) 
is amended— 
(1) in subparagraph (C)— 
(A) in the heading— 
(i) by inserting ‘‘OR
RURAL’’ after 
‘‘LOW-INCOME’’; and 
(ii) by inserting ‘‘OR CRITICAL TECH-
NOLOGY
AREAS’’ 
after 
‘‘GEOGRAPHIC 
AREAS’’; 
(B) in clause (i)— 
(i) by inserting ‘‘or companies’’ after 
‘‘of a company’’; 
(ii) by striking ‘‘subparagraph (A)’’ 
and inserting ‘‘subparagraphs (A) and 
(B)’’; 
(iii) by striking ‘‘equity’’; 
(iv) by striking ‘‘the company in a 
smaller enterprise’’ and all that follows 
and inserting the following: ‘‘the company 
or companies in— 
‘‘(I) a smaller enterprise located 
in a low-income geographic area (as 
defined in section 689 of this title) or 
in a rural area; or’’; and 
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(v) by adding at the end the following 
new subclause: 
‘‘(II) a small business concern in 
an area of critical technology (as de-
fined in section 4801 of title 10, 
United States Code) vital to maintain-
ing the national security of the United 
States.’’; 
(C) by amending clause (ii) to read as fol-
lows: 
‘‘(ii) 
LIMITATION.—The 
aggregate 
amount excluded for a company or compa-
nies under clause (i) from the calculation 
of the outstanding leverage of such com-
pany or companies for the purposes of sub-
paragraphs (A) and (B) may not exceed 50 
percent of the private capital of such com-
pany or companies.’’; and 
(D) by striking clause (iii); and 
(2) by adding at the end the following new sub-
paragraphs: 
‘‘(E) ANNUAL ADJUSTMENT.—The Admin-
istrator shall adjust the dollar amounts de-
scribed in subparagraphs (A) and (B)— 
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‘‘(i) on the date of the enactment of 
this subparagraph, by a percentage equal 
to the percentage (if any) by which the 
Consumer Price Index (all items; United 
States city average), as published by the 
Bureau of Labor Statistics, increased dur-
ing the period beginning on the date of the 
most recent adjustment to each such dollar 
amount and the date of the enactment of 
this subparagraph; and 
‘‘(ii) on the date that is one year after 
the date of the enactment of this subpara-
graph, and annually thereafter, by a per-
centage equal to the percentage (if any) by 
which the Consumer Price Index (all items; 
United States city average), as published 
by the Bureau of Labor Statistics, in-
creased during the one-year period pre-
ceding the date of the adjustment under 
this clause.’’. 
(b) REPORT.—Not later than June 30 of the first 
year beginning after the date of the enactment of this Act, 
and annually thereafter, the Administrator of the Small 
Business Administration shall submit to the Committee on 
Small Business and Entrepreneurship of the Senate and 
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the Committee on Small Business of the House of Rep-
resentatives a report on the results of the exclusion under 
subparagraph (C) of section 303(b)(2) of the Small Busi-
ness Investment Act of 1958 (15 U.S.C. 683(b)(2)), as 
amended by subsection (a), including the economic activity 
generated and jobs directly and indirectly created by the 
exclusion. 
Æ 
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