I 
109TH CONGRESS 
1ST SESSION H. R. 4565 
To amend the Small Business Investment Act of 1958 to establish the 
Angel Investment Program. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 15, 2005 
Ms. VELA´ZQUEZ (for herself, Mr. BARROW, Ms. BEAN, Ms. BORDALLO, Mr. 
CASE, Mrs. CHRISTENSEN, Mr. DAVIS of Illinois, Mr. GRIJALVA, Mr. 
MICHAUD, Ms. MILLENDER-MCDONALD, Ms. MOORE of Wisconsin, and 
Ms. LINDA T. SA´NCHEZ of California) introduced the following bill; which 
was referred to the Committee on Small Business, and in addition to the 
Committee on Ways and Means, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To amend the Small Business Investment Act of 1958 to 
establish the Angel Investment Program. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Angels Nurture Grow-
ing Entrepreneurs into Long-term Successes (ANGELS) 
Act’’.
SEC. 2. ESTABLISHMENT OF ANGEL INVESTMENT PRO-
GRAM. 
(a) ESTABLISHMENT.—Title III of the Small Busi-
ness Investment Act of 1958 (15 U.S.C. 681 et seq.) is 
amended by adding at the end the following new part: 
‘‘PART C—ANGEL INVESTMENT PROGRAM 
‘‘SEC. 380. OFFICE OF ANGEL INVESTMENT. 
‘‘(a) ESTABLISHMENT.—There is established, in the 
Investment Division of the Small Business Administra-
tion, the Office of Angel Investment. 
‘‘(b) DIRECTOR.—The head of the Office of Angel In-
vestment is the Director of Angel Investment. 
‘‘(c) DUTIES.—Subject to the direction of the Sec-
retary, the Director shall perform the following functions: 
‘‘(1) Provide support for the development of 
angel investment opportunities for small business 
concerns. 
‘‘(2) Administer the Angel Finance Program 
under section 381 of this Act. 
‘‘(3) Administer the Federal Angel Network 
under section 382 of this Act. 
‘‘(4) Administer the grant program for the de-
velopment of angel groups under section 383 of this 
Act. 
‘‘(5) Perform such other duties consistent with 
this section as the Administrator shall prescribe.
‘‘SEC. 381. ANGEL FINANCE PROGRAM. 
‘‘(a) IN GENERAL.—The Director of Angel Invest-
ment shall establish and carry out a program, to be known 
as the Angel Finance Program, to provide financing to 
approved angel groups. 
‘‘(b) ELIGIBILITY.—To be eligible to receive financ-
ing under this section, an angel group shall— 
‘‘(1) have demonstrated experience making in-
vestments in local or regional small business con-
cerns; 
‘‘(2) have established protocols and a due dili-
gence process for determining its investment strat-
egy; 
‘‘(3) have an established code of ethics; and 
‘‘(4) submit an application to the Director of 
Angel Investment at such time and containing such 
information and assurances as the Director may re-
quire. 
‘‘(c) USE OF FUNDS.—An angel group that receives 
financing under this section shall use the amounts received 
to make investments in small business concerns— 
‘‘(1) that have been in existence for less than 
5 years as of the date on which the investment is 
made; 
‘‘(2) that have fewer than 75 employees as of 
the date on which the investment is made; and
‘‘(3) more than 50 percent of the employees of 
which perform substantially all of their services in 
the United States as of the date on which the invest-
ment is made. 
‘‘(d) LIMITATION ON AMOUNT.—No angel group re-
ceiving financing under this section shall receive more 
than $2,000,000. 
‘‘(e) PRIORITY IN PROVIDING FINANCING.—In pro-
viding financing under this section, the Director shall give 
priority to angel groups that invest in small business con-
cerns owned and controlled by veterans, small business 
concerns owned and controlled by women, and socially and 
economically disadvantaged small business concerns. 
‘‘(f) GEOGRAPHIC DISTRIBUTION OF FINANCING.— 
In providing financing under this section, the Director 
shall, to the extent practicable, provide financing to angel 
groups that are located in a variety of geographic areas. 
‘‘(g) MATCHING REQUIREMENT.—As a condition of 
receiving financing under this section, the Director shall 
require that for each small business concern in which the 
angel group receiving such financing invests, the angel 
group shall invest an amount that is equal to or greater 
than the amount of financing received under this section 
from a source other than the Federal Government that 
is equal to the amount of the financing provided under