I 
112TH CONGRESS 
1ST SESSION H. R. 2872 
To amend the Small Business Investment Act of 1958 to improve the New 
Markets Venture Capital Program, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 8, 2011 
Ms. VELA´ZQUEZ introduced the following bill; which was referred to the 
Committee on Small Business 
A BILL 
To amend the Small Business Investment Act of 1958 to 
improve the New Markets Venture Capital Program, and 
for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Job Creation and Urban Revitalization Act of 2011’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Increased investment in job creating small business concerns. 
Sec. 3. Updating definition of low-income geographic area. 
Sec. 4. Expanded uses for operational assistance for small business concerns lo-
cated in areas of high unemployment. 
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Sec. 5. Definition of area of high unemployment. 
Sec. 6. Nationwide distribution of companies to generate new employment op-
portunities. 
Sec. 7. Limitation on time for final approval. 
Sec. 8. Elimination of matching requirement for areas with high unemployment 
and areas designated as an urban manufacturing revitalization 
area. 
Sec. 9. Urban manufacturing revitalization areas. 
Sec. 10. Simplified formula for operational assistance grants. 
Sec. 11. Expanding operational assistance to conditionally approved companies. 
Sec. 12. Authorization of appropriations. 
Sec. 13. Streamlined application for New Markets Venture Capital Program. 
SEC. 2. INCREASED INVESTMENT IN JOB CREATING SMALL 
BUSINESS CONCERNS. 
(a) DEVELOPMENTAL VENTURE CAPITAL AND PAR-
TICIPATION AGREEMENTS.—Section 351 of the Small 
Business Investment Act of 1958 (15 U.S.C. 689) is 
amended— 
(1) in paragraph (1) by inserting after ‘‘geo-
graphic areas’’ the following: ‘‘or encouraging the 
growth or continuation of small business concerns 
located in areas of high unemployment’’; and 
(2) in paragraph (6)(B) by inserting after ‘‘geo-
graphic areas’’ the following: ‘‘or in small business 
concerns located in areas of high unemployment’’. 
(b) PURPOSES.—Section 352 of the Small Business 
Investment Act of 1958 (15 U.S.C. 689a) is amended— 
(1) by striking paragraph (1) and inserting the 
following: 
‘‘(1) to promote economic development in low- 
income geographic areas and to create job opportu-
nities in areas of high unemployment by encouraging 
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developmental venture capital investments in smaller 
enterprises and small business concerns primarily lo-
cated in such areas; and’’; and 
(2) in paragraph (2)— 
(A) in the matter preceding subparagraph 
(A) by inserting after ‘‘geographic areas’’ the 
following: ‘‘and small business concerns located 
in areas of high unemployment’’; 
(B) in subparagraph (B) by inserting after 
‘‘geographic areas’’ the following: ‘‘or in small 
business concerns located in areas of high un-
employment’’; and 
(C) in subparagraph (C) by inserting after 
‘‘smaller enterprises’’ the following: ‘‘and small 
business concerns’’. 
(c) ELIGIBILITY, APPLICATIONS, AND
REQUIRE-
MENTS FOR FINAL APPROVAL.—Section 354 of the Small 
Business Investment Act of 1958 (15 U.S.C. 689c) is 
amended— 
(1) in subsection (a)(3) by inserting after ‘‘geo-
graphic areas’’ the following: ‘‘or investing in small 
business concerns located in areas of high unemploy-
ment’’; 
(2) in subsection (b)— 
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(A) in paragraph (1) by inserting after 
‘‘geographic areas’’ the following: ‘‘or in small 
business concerns located in areas of high un-
employment’’; and 
(B) in paragraph (4) by inserting after 
‘‘smaller enterprises’’ the following: ‘‘or small 
business concerns’’; and 
(3) in subsection (d)— 
(A) in paragraph (1)— 
(i) by striking ‘‘Each’’ and inserting 
the following: 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraphs (B) and (C), each’’; and 
(ii) by adding at the end the fol-
lowing: 
‘‘(B) SMALL
BUSINESS
CONCERNS
LO-
CATED IN AREAS OF HIGH UNEMPLOYMENT.— 
Each conditionally approved company engaged 
primarily in development of and investment in 
small business concerns located in areas of high 
unemployment 
shall 
raise 
not 
less 
than 
$3,000,000 of private capital or binding capital 
commitments from one or more investors (other 
than agencies or departments of the Federal 
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Government) who met criteria established by 
the Administrator.’’; and 
(B) in paragraph (2)(A) by inserting after 
‘‘smaller enterprises’’ the following: ‘‘or small 
business concerns’’. 
(d) OPERATIONAL ASSISTANCE GRANTS.—Section 
358 of the Small Business Investment Act of 1958 (15 
U.S.C. 689g) is amended— 
(1) in subsection (a)(1) by inserting after 
‘‘smaller enterprises’’ the following: ‘‘and small busi-
ness concerns’’; and 
(2) in subsection (b)(1) by inserting after 
‘‘smaller enterprises’’ the following: ‘‘and small busi-
ness concerns’’. 
SEC. 3. UPDATING DEFINITION OF LOW-INCOME GEO-
GRAPHIC AREA. 
Section 351 of the Small Business Investment Act 
of 1958 (15 U.S.C. 689), as amended by section 2 of this 
Act, is further amended— 
(1) by striking paragraphs (2) and (3); 
(2) by inserting after paragraph (1) the fol-
lowing: 
‘‘(2) LOW-INCOME
GEOGRAPHIC
AREA.—The 
term ‘low-income geographic area’ has the meaning 
given the term ‘low-income community’ in section 
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45D(e) of the Internal Revenue Code of 1986, ex-
cept that, without regard to that meaning, the term 
includes an area of high unemployment.’’; and 
(3) by redesignating paragraphs (4) through 
(8) as paragraphs (3) through (7), respectively. 
SEC. 4. EXPANDED USES FOR OPERATIONAL ASSISTANCE 
FOR SMALL BUSINESS CONCERNS LOCATED 
IN AREAS OF HIGH UNEMPLOYMENT. 
Section 351 of the Small Business Investment Act 
of 1958 (15 U.S.C. 689), as amended by this Act, is fur-
ther amended in paragraph (4) (as so redesignated by sec-
tion 3 of this Act) by inserting after ‘‘business develop-
ment’’ the following: ‘‘and, with respect to a small busi-
ness concern located in an area of high unemployment, 
assistance that assists the concern with retooling, updat-
ing, or replacing machinery or equipment’’. 
SEC. 5. DEFINITION OF AREA OF HIGH UNEMPLOYMENT. 
Section 351 of the Small Business Investment Act 
of 1958 (15 U.S.C. 689), as amended by this Act, is fur-
ther amended by adding at the end the following: 
‘‘(8) AREA
OF
HIGH
UNEMPLOYMENT.—The 
term ‘area of high unemployment’ means a geo-
graphic area that the Administrator determines has 
an unemployment rate that exceeds the national un-
employment rate.’’. 
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SEC. 6. NATIONWIDE DISTRIBUTION OF COMPANIES TO 
GENERATE NEW EMPLOYMENT OPPORTUNI-
TIES. 
Paragraph (3) of section 354(c) of the Small Busi-
ness Investment Act of 1958 (15 U.S.C. 689c(c)) is 
amended to read as follows: 
‘‘(3) GEOGRAPHIC
EXPANSION.—In selecting 
companies under paragraph (1), the Administrator 
shall consider the need to promote investment na-
tionwide and shall, to the extent practicable, select 
at least 1 company from each geographic region of 
the Small Business Administration.’’. 
SEC. 7. LIMITATION ON TIME FOR FINAL APPROVAL. 
Section 354(d) of the Small Business Investment Act 
of 1958 (15 U.S.C. 689c(d)) is amended in the matter 
preceding paragraph (1) by striking ‘‘a period of time, not 
to exceed 2 years,’’ and inserting ‘‘2 years’’. 
SEC. 8. ELIMINATION OF MATCHING REQUIREMENT FOR 
AREAS WITH HIGH UNEMPLOYMENT AND 
AREAS DESIGNATED AS AN URBAN MANUFAC-
TURING REVITALIZATION AREA. 
Section 354(d)(2)(A)(i)(III) of the Small Business 
Investment Act of 1958 (15 U.S.C. 689c(d)(2)(A)(i)(III)) 
is amended by inserting after ‘‘under paragraph (1)’’ the 
following: ‘‘, except that this subclause shall not apply to 
a company the Administrator determines is primarily serv-
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ing small business concerns located in an area of high un-
employment or in an area designated as an urban manu-
facturing revitalization area under subsection (f)’’. 
SEC. 9. URBAN MANUFACTURING REVITALIZATION AREAS. 
(a) IN GENERAL.—Section 354 of the Small Business 
Investment Act of 1958 (15 U.S.C. 689c), as amended 
by this Act, is further amended by adding at the end the 
following: 
‘‘(f) 
URBAN
MANUFACTURING
REVITALIZATION 
AREAS.— 
‘‘(1) IN
GENERAL.—In approving companies 
under this section to participate in the New Markets 
Venture Capital Program, the Administrator may 
approve a company to serve, throughout all States, 
solely small business concerns located in areas des-
ignated as an urban manufacturing revitalization 
area under paragraph (2). 
‘‘(2) DESIGNATION.—For purposes of para-
graph (1), the Administrator may designate an area 
as an urban manufacturing revitalization area if— 
‘‘(A) the area is a low-income geographic 
area; 
‘‘(B) the Administrator determines the 
area is an urban area; and 
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‘‘(C) the Administrator determines there 
is, or was during the preceding 10-year period, 
a substantial presence of businesses in the area 
the primary business of which is classified in 
sector 31, 32, or 33 of the North American In-
dustrial Classification System. 
‘‘(3) CONSIDERATION.—In approving a com-
pany under paragraph (1), the Administrator shall 
give priority to a company that demonstrates a 
strong commitment to and experience in revitalizing 
and redeveloping urban areas through investment in 
and the provision of management and technical as-
sistance to small business concerns in those areas. 
‘‘(4) COORDINATION.—The Administrator shall 
work to coordinate and make available to small busi-
ness concerns served by a company approved under 
paragraph (1) the resources provided under the en-
trepreneurial development, contracting, and financ-
ing programs of the Administration. 
‘‘(5) INCREASING
PROCUREMENT
OPPORTUNI-
TIES.—The Administrator shall designate at least 1 
procurement center representative or commercial 
market representative to identify procurement op-
portunities for small business concerns served by a 
company approved under paragraph (1).’’. 
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(b) CAPITAL REQUIREMENT.—Section 354(d)(1) of 
the Small Business Investment Act of 1958 (15 U.S.C. 
689c(d)(1)) is amended by adding at the end the fol-
lowing: 
‘‘(C) SMALL
BUSINESS
CONCERNS
LO-
CATED
IN
URBAN
MANUFACTURING
REVITAL-
IZATION AREAS.—Each conditionally approved 
company engaged primarily in development of 
and investment in small business concerns lo-
cated in areas designated as urban manufac-
turing revitalization areas under subsection (f) 
shall raise not less than $2,000,000 of private 
capital or binding capital commitments from 
one or more investors (other than agencies or 
departments of the Federal Government) who 
met criteria established by the Administrator.’’. 
SEC. 10. SIMPLIFIED FORMULA FOR OPERATIONAL ASSIST-
ANCE GRANTS. 
Subparagraph (A) of section 358(a)(4) of the Small 
Business Investment Act of 1958 (15 U.S.C. 689g(a)(4)) 
is amended— 
(1) by striking ‘‘shall be equal to’’ and all that 
follows through the period at the end and inserting 
‘‘shall be equal to the lesser of—’’; and 
(2) by adding at the end the following: 
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‘‘(i) 10 percent of the resources (in 
cash or in kind) raised by the company 
under section 354(d)(2); or 
‘‘(ii) $1,000,000.’’. 
SEC. 11. EXPANDING OPERATIONAL ASSISTANCE TO CONDI-
TIONALLY APPROVED COMPANIES. 
Section 358(a) of the Small Business Investment Act 
of 1958 (15 U.S.C. 689g(a)) is amended by adding at the 
end the following: 
‘‘(6) GRANTS
TO
CONDITIONALLY
APPROVED 
COMPANIES.— 
‘‘(A) IN GENERAL.—Subject to the provi-
sions of this paragraph, upon the request of a 
company conditionally approved under section 
354(c), the Administrator is authorized to make 
a grant to the company under this subsection. 
‘‘(B) REPAYMENT BY COMPANIES NOT AP-
PROVED.—If a company receives a grant under 
this paragraph and does not receive final ap-
proval under section 354(e), the company shall 
repay the amount of the grant to the Adminis-
trator. 
‘‘(C) DEDUCTION
FROM
GRANT
TO
AP-
PROVED
COMPANY.—If a company receives a 
grant under this paragraph and receives final 
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approval under section 354(e), the Adminis-
trator shall deduct the amount of such grant 
from the amount of any immediately succeeding 
grant the company receives for operational as-
sistance. 
‘‘(D) AMOUNT
OF
GRANT.—No company 
may receive a grant of more than $50,000 
under this paragraph.’’. 
SEC. 12. AUTHORIZATION OF APPROPRIATIONS. 
Section 368(a) of the Small Business Investment Act 
of 1958 (15 U.S.C. 689q(a)) is amended— 
(1) in the matter preceding paragraph (1) by 
striking ‘‘fiscal years 2001 through 2006’’ and in-
serting ‘‘fiscal years 2012 and 2013’’; 
(2) in paragraph (1)— 
(A) by striking ‘‘$150,000,000’’ and in-
serting ‘‘$75,000,000’’; and 
(B) by inserting before the period at the 
end the following: ‘‘, of which not less than 50 
percent shall be used to guarantee debentures 
of companies primarily serving small business 
concerns located in areas of high unemploy-
ment’’; and 
(3) in paragraph (2)— 
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(A) by striking ‘‘$30,000,000’’ and insert-
ing ‘‘$15,000,000’’; and 
(B) by inserting before the period at the 
end the following: ‘‘, of which not less than 50 
percent shall be used to make grants to compa-
nies primarily serving small business concerns 
located in areas of high unemployment’’. 
SEC. 13. STREAMLINED APPLICATION FOR NEW MARKETS 
VENTURE CAPITAL PROGRAM. 
Not later than 60 days after the date of enactment 
of this Act, the Administrator of the Small Business Ad-
ministration shall prescribe standard documents for a New 
Markets Venture Capital company final approval applica-
tion with respect to section 354(e) of the Small Business 
Investment Act of 1958 (15 U.S.C. 689c(e)). The Admin-
istrator shall ensure that the standard documents are de-
signed to substantially reduce the cost burden of the appli-
cation process for companies. 
Æ 
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