I
106TH CONGRESS
2D SESSION
H. R. 5663
To provide for community renewal and new markets initiatives.
IN THE HOUSE OF REPRESENTATIVES
DECEMBER 14, 2000
Mr. TALENT (for himself and Ms. VELA´ZQUEZ) introduced the following bill;
which was referred to the Committee on Small Business
A BILL
To provide for community renewal and new markets
initiatives.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. NEW MARKETS VENTURE CAPITAL PROGRAM.
(a) SHORT TITLE.—This section may be cited as the
‘‘New Markets Venture Capital Program Act of 2000’’.
(b) NEW MARKETS VENTURE CAPITAL PROGRAM.—
Title III of the Small Business Investment Act of 1958
(15 U.S.C. 681 et seq.) is amended—
(1) in the heading for the title, by striking
‘‘SMALL BUSINESS INVESTMENT COMPA-
NIES’’ and inserting ‘‘INVESTMENT DIVISION
PROGRAMS’’;
(2) by inserting before the heading for section
301 the following:
‘‘PART A—SMALL BUSINESS INVESTMENT COMPANIES’’;
and
(3) by adding at the end the following:
‘‘PART B—NEW MARKETS VENTURE CAPITAL PROGRAM
‘‘SEC. 351. DEFINITIONS.
‘‘In this part, the following definitions apply:
‘‘(1) DEVELOPMENTAL
VENTURE
CAPITAL.—
The term ‘developmental venture capital’ means cap-
ital in the form of equity capital investments in busi-
nesses made with a primary objective of fostering
economic development in low-income geographic
areas. For the purposes of this paragraph, the term
‘equity capital’ has the same meaning given such
term in section 303(g)(4).
‘‘(2) LOW-INCOME
INDIVIDUAL.—The term
‘low-income individual’ means an individual whose
income (adjusted for family size) does not exceed—
‘‘(A) for metropolitan areas, 80 percent of
the area median income; and
‘‘(B) for nonmetropolitan areas, the great-
er of—
‘‘(i) 80 percent of the area median in-
come; or
‘‘(ii) 80 percent of the statewide non-
metropolitan area median income.
‘‘(3) LOW-INCOME
GEOGRAPHIC
AREA.—the
term ‘low-income geographic area’ means—
‘‘(A) any population census tract (or in the
case of an area that is not tracted for popu-
lation census tracts, the equivalent county divi-
sion, as defined by the Bureau of the Census of
the Department of Commerce for purposes of
defining poverty areas), if—
‘‘(i) the poverty rate for that census
tract is not less than 20 percent;
‘‘(ii) in the case of a tract—
‘‘(I) that is located within a met-
ropolitan area, 50 percent or more of
the households in that census tract
have an income equal to less than 60
percent of the area median gross in-
come; or
‘‘(II) that is not located within a
metropolitan area, the median house-
hold income for such tract does not
exceed 80 percent of the statewide
median household income; or
‘‘(iii) as determined by the Adminis-
trator based on objective criteria, a sub-
stantial population of low-income individ-
uals reside, an inadequate access to invest-
ment capital exists, or other indications of
economic distress exist in that census
tract; or
‘‘(B) any area located within—
‘‘(i) a HUBZone (as defined in sec-
tion 3(p) of the Small Business Act and
the implementing regulations issued under
that section);
‘‘(ii) an urban empowerment zone or
urban enterprise community (as designated
by the Secretary of Housing and Urban
Development); or
‘‘(iii) a rural empowerment zone or
rural enterprise community (as designated
by the Secretary of Agriculture).
‘‘(4) NEW MARKETS VENTURE CAPITAL COM-
PANY.—The term ‘New Markets Venture Capital
company’ means a company that—
‘‘(A) has been granted final approval by
the Administrator under section 354(e); and
‘‘(B) has entered into a participation
agreement with the Administrator.
‘‘(5) OPERATIONAL
ASSISTANCE.—The term
‘operational assistance’ means management, mar-
keting, and other technical assistance that assists a
small business concern with business development.
‘‘(6) PARTICIPATION
AGREEMENT.—The term
‘participation agreement’ means an agreement, be-
tween the Administrator and a company granted
final approval under section 354(e), that—
‘‘(A) details the company’s operating plan
and investment criteria; and
‘‘(B) requires the company to make invest-
ments in smaller enterprises at least 80 percent
of which are located in low-income geographic
areas.
‘‘(7) SPECIALIZED
SMALL
BUSINESS
INVEST-
MENT COMPANY.—The term ‘specialized small busi-
ness investment company’ means any small business
investment company that—
‘‘(A) invests solely in small business con-
cerns that contribute to a well-balanced na-
tional economy by facilitating ownership in such