I
106TH CONGRESS
2D SESSION
H. R. 3845
To make corrections to the Small Business Investment Act of 1958, and
for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 8, 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 make corrections to the Small Business Investment Act
of 1958, 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.
This Act may be cited as the ‘‘Small Business Invest-
ment Corrections Act of 2000’’.
SEC. 2. DEFINITIONS.
(a) 
SMALL
BUSINESS
CONCERN.—Section
103(5)(A)(i) of the Small Business Investment Act of
1958 (15 U.S.C. 662(5)(A)(i)) is amended by inserting
‘‘regardless of the allocation of control during the invest-
ment period under any investment agreement between the
business concern and the entity making the investment’’
before the semicolon at the end.
(b) LONG TERM.—Section 103 of the Small Business
Investment Act of 1958 (15 U.S.C. 662) is amended—
(1) in paragraph (15), by striking ‘‘and’’ at the
end;
(2) in paragraph (16), by striking the period at
the end and inserting ‘‘; and’’; and
(3) by adding at the end the following new
paragraph:
‘‘(17) the term ‘long term’, when used in con-
nection with equity capital or loan funds invested in
any small business concern or smaller enterprise,
means any period of time not less than 1 year.’’.
SEC. 3. SUBSIDY FEES.
(a) DEBENTURES.—Section 303(b) of the Small
Business Investment Act of 1958 (15 U.S.C. 683(b)) is
amended by striking ‘‘plus an additional charge of 1 per-
cent per annum which shall be paid to and retained by
the Administration’’ and inserting ‘‘plus an additional
charge, in an amount established annually by the Adminis-
tration, of not more than 1 percent per year as necessary
to reduce to zero the cost (as defined in section 502 of
the Federal Credit Reform Act of 1990 (2 U.S.C. 661a))
to the Administration of purchasing and guaranteeing de-
bentures under this Act, which shall be paid to and re-
tained by the Administration’’.
(b) PARTICIPATING SECURITIES.—Section 303(g)(2)
of the Small Business Investment Act of 1958 (15 U.S.C.
683(g)(2)) is amended by striking ‘‘plus an additional
charge of 1 percent per annum which shall be paid to and
retained by the Administration’’ and inserting ‘‘plus an
additional charge, in an amount established annually by
the Administration, of not more than 1 percent per year
as necessary to reduce to zero the cost (as defined in sec-
tion 502 of the Federal Credit Reform Act of 1990 (2
U.S.C. 661a)) to the Administration of purchasing and
guaranteeing participating securities under this Act, which
shall be paid to and retained by the Administration’’.
SEC. 4. DISTRIBUTIONS.
Section 303(g)(8) of the Small Business Investment
Act of 1958 (15 U.S.C. 683(g)(8)) is amended—
(1) by striking ‘‘subchapter s corporation’’ and
inserting ‘‘subchapter S corporation’’;
(2) by striking ‘‘the end of any calendar quarter
based on a quarterly’’ and inserting ‘‘any time dur-
ing any calendar quarter based on an’’; and
(3) by striking ‘‘quarterly distributions for a
calendar year,’’ and inserting ‘‘interim distributions
for a calendar year,’’.
SEC. 5. CONFORMING AMENDMENT.
Section 310(c)(4) of the Small Business Investment
Act of 1958 (15 U.S.C. 687b(c)(4)) is amended by strik-
ing ‘‘five years’’ and inserting ‘‘1 year’’.
Æ