SEC. 3. RURAL BUSINESS INVESTMENT. 
(a) IN GENERAL.—The Small Business Investment 
Act of 1958 (15 U.S.C. 661 et seq.) is amended— 
(1) in part A of title III (15 U.S.C. 681 et 
seq.)— 
(A) in section 303(b)(2) (15 U.S.C. 
683(b)(2)), by adding at the end the following: 
‘‘(E) INVESTMENTS IN RURAL AREAS.— 
‘‘(i) DEFINITION.—In this subpara-
graph, the term ‘rural area’ has the mean-
ing given the term in section 343(a) of the 
Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 1991(a)). 
‘‘(ii) ADDITIONAL LEVERAGE.— 
‘‘(I) IN
GENERAL.—In calcu-
lating the outstanding leverage of a 
company for the purposes of subpara-
graph (A), the Administrator shall not 
include the amount of the cost basis 
of any equity investment made by the 
company in a smaller enterprise lo-
cated in a rural area if the Adminis-
trator, after performing an appro-
priate evaluation, determines that 
such an exclusion will not result in 
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additional risk to the Administration 
or the Federal Government. 
‘‘(II) LIMITATION.—The amount 
excluded under subclause (I) for a 
company shall not exceed $25,000,000 
in any fiscal year.’’; 
(B) in section 308(g)(3) (15 U.S.C. 
687(g)(3))— 
(i) in subparagraph (D), by striking 
‘‘and’’ at the end; 
(ii) in subparagraph (E), by striking 
the period at the end and inserting ‘‘; 
and’’; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(F) the total number of rural business invest-
ment companies, as defined in section 321(a), that 
received leverage from the Administration under sec-
tion 321 in the previous year, including the amount 
of that leverage that each such rural business invest-
ment company received.’’; 
(C) in section 310(d)(1)(A) (15 U.S.C. 
687b(d)(1)(A)), by inserting ‘‘(including each 
rural business investment company that receives 
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leverage under section 321)’’ after ‘‘Each li-
censee’’; and 
(D) by adding at the end the following: 
‘‘SEC. 321. RURAL BUSINESS INVESTMENT COMPANIES. 
‘‘(a) DEFINITIONS.—In this section— 
‘‘(1) the term ‘covered amounts’ means, with 
respect to a fiscal year, the amounts made available 
for that fiscal year to grant leverage under this part 
to small business investment companies; 
‘‘(2) the term ‘rural business investment com-
pany’ has the meaning given the term in section 
384A of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 2009cc); and 
‘‘(3) the term ‘Secretary’ means the Secretary 
of Agriculture. 
‘‘(b) LEVERAGE.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), 
if the Administration determines under subsection 
(c) that the Administration will be unable to expend 
all of the covered amounts for a particular fiscal 
year, the Administration shall expend those unex-
pended covered amounts for that fiscal year to grant 
leverage to rural business investment companies for 
the purposes described in this part if, with respect 
to that fiscal year, the Secretary determines that the 
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Secretary is unable to grant leverage to rural busi-
ness investment companies in a manner that is suffi-
cient to satisfy the leverage needs of those rural 
business investment companies. 
‘‘(2) CONDITIONS.—With respect to leverage 
granted by the Administration to a rural business 
investment company under paragraph (1)— 
‘‘(A) the amount of the leverage made 
available shall be subject to the limitations 
under section 303(b)(2); 
‘‘(B) for the purposes of subparagraph 
(A), any leverage granted by the Secretary to 
the rural business investment company under 
the program carried out under subtitle H of the 
Consolidated Farm and Rural Development Act 
(7 U.S.C. 2009cc et seq.) shall be included 
when determining the maximum amount of out-
standing leverage that may be made available to 
the rural business investment company under 
this section; and 
‘‘(C) the Administration, in consultation 
with the Secretary, shall— 
‘‘(i) impose such terms and conditions 
with respect to the leverage that the Ad-
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ministration and the Secretary determine 
to be appropriate; and 
‘‘(ii) in developing the terms and con-
ditions described in clause (i)— 
‘‘(I) ensure, to the maximum ex-
tent practicable, that those terms and 
conditions are not— 
‘‘(aa) duplicative of other re-
quirements applicable to rural 
business investment companies; 
or 
‘‘(bb) otherwise unnecessary; 
and 
‘‘(II) take into consideration how 
rural business investment companies 
that have been issued a license by the 
Secretary under section 384D(e) of 
the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 2009cc–3(e)) 
before the date of enactment of this 
section could qualify to receive that le-
verage. 
‘‘(c) INTERNAL EVALUATION.—Not later than June 
1 of each year, the Administration shall perform an eval-
uation to determine whether the Administration will be 
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unable to expend all of the covered amounts for the fiscal 
year in which the evaluation is made.’’; and 
(2) in section 503(g) (15 U.S.C. 697(g)), by in-
serting ‘‘, and with respect to leverage granted 
under section 321,’’ after ‘‘retained by the Adminis-
tration under this section’’. 
(b) SBA REQUIREMENTS.— 
(1) ESTABLISHMENT
OF
APPLICATION
PROC-
ESS.—Not later than 180 days after the date of en-
actment of this Act, the Administrator, in consulta-
tion with the Secretary, shall establish a process 
through which a rural business investment company 
may apply for leverage granted under section 321 of 
the Small Business Investment Act of 1958, as 
added by subsection (a) of this section. 
(2) UPDATE TO RULES.—Not later than 180 
days after the date of enactment of this Act, and in 
addition to the process established under paragraph 
(1), the Administrator shall make any updates to the 
rules of the Administration that are necessary as a 
result of this section and the amendments made by 
this section. 
SEC. 4. INTERAGENCY WORKING GROUP. 
(a) ESTABLISHMENT.—Not later than 180 days after 
the date of enactment of this Act, the Administrator, in 
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