I 
109TH CONGRESS 
1ST SESSION H. R. 4303 
To amend the Small Business Investment Act of 1958 to reauthorize and 
expand the New Markets Venture Capital Program, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 10, 2005 
Ms. MOORE of Wisconsin (for herself and Mr. ROGERS of Kentucky) intro-
duced the following bill; which was referred to the Committee on Small 
Business 
A BILL 
To amend the Small Business Investment Act of 1958 to 
reauthorize and expand the New Markets Venture Cap-
ital 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. 
This Act may be cited as the ‘‘Securing Equity for 
the Economic Development of Low Income Areas Act of 
2005’’.
SEC. 2. EXPANSION OF NEW MARKETS VENTURE CAPITAL 
PROGRAM. 
(a) SELECTION
OF COMPANIES
IN EACH GEO-
GRAPHIC REGION.—Section 354 of the Small Business In-
vestment Act of 1958 is amended by adding at the end 
the following new subsection: 
‘‘(f) GEOGRAPHIC REQUIREMENT.—In selecting com-
panies to participate as New Markets Venture Capital 
companies in the program established under this part, the 
Administrator shall select, to the extent practicable, from 
among companies submitting applications under sub-
section (b), at least one company from each geographic 
region of the Small Business Administration.’’ 
(b) PARTICIPATION
IN NEW MARKETS VENTURE 
CAPITAL PROGRAM.— 
(1) 
ADMINISTRATION
PARTICIPATION
RE-
QUIRED.—Section 353 of the Small Business Invest-
ment Act of 1958 (15 U.S.C. 689b) is amended by 
striking ‘‘under which the Administrator may’’ and 
inserting ‘‘under which the Administrator shall’’. 
(2) SMALL
MANUFACTURER
PARTICIPATION 
AGREEMENTS REQUIRED.—Such section, as amend-
ed by paragraph (1), is further amended, by insert-
ing after ‘‘section 352’’ the following: ‘‘(with at least 
one such agreement to be with a company engaged
primarily in development of and investment in small 
manufacturers, to the extent practicable)’’. 
(c) REPORT TO CONGRESS.—Not later than 1 year 
after the date of the enactment of this Act, the Adminis-
trator of the Small Business Administration shall submit 
to Congress a report evaluating the success of the expan-
sion of the New Markets Venture Capital Program under 
this section. 
SEC. 3. ESTABLISHMENT OF OFFICE OF NEW MARKETS 
VENTURE CAPITAL. 
(a) IN GENERAL.—Title II of the Small Business In-
vestment Act of 1958 (15 U.S.C. 671 et seq.) is amended 
by adding at the end the following new section: 
‘‘SEC. 202. OFFICE OF NEW MARKETS VENTURE CAPITAL. 
‘‘(a) ESTABLISHMENT.—There is hereby established 
in the Investment Division of the Small Business Adminis-
tration an office to be known as the ‘Office of New Mar-
kets Venture Capital’. 
‘‘(b) DIRECTOR.—The Office of New Markets Ven-
ture Capital shall be headed by a Director who shall be 
appointed by the Administrator. 
‘‘(c) RESPONSIBILITIES OF DIRECTOR.—Subject to 
the direction and control of the Administrator, the respon-
sibilities of the Director of the Office of New Markets Ven-
ture Capital are as follows:
‘‘(1) To administer the New Markets Venture 
Capital Program. 
‘‘(2) To periodically assess the nature and scope 
of the New Markets Venture Capital Program and 
to advise the Administrator on recommended 
changes to the program based on such assessment. 
‘‘(3) To work to expand the number of small 
business concerns participating in the New Markets 
Venture Capital Program. 
‘‘(4) To encourage investment in small manu-
facturing. 
‘‘(5) To perform such other duties relating to 
such responsibilities as the Administrator may pro-
vide.’’. 
(b) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated $1,000,000 to carry out this 
section. 
SEC. 4. LOW-INCOME GEOGRAPHIC AREAS. 
(a) MODIFICATION OF DEFINITION OF LOW-INCOME 
GEOGRAPHIC AREA FOR PURPOSES OF NEW MARKETS 
VENTURE CAPITAL PROGRAM.— 
(1) IN GENERAL.—Section 351(3)(A)(ii)(I) of 
the Small Business Investment Act of 1958 (15 
U.S.C. 689(3)(A)(ii)(I)) is amended by striking ‘‘50 
percent’’ and all that follows through the end and
inserting ‘‘the median family income in that tract 
does not exceed 80 percent of the greater of the 
statewide median family income or the metropolitan 
area median family income; or’’. 
(2) APPLICATION OF AMENDED DEFINITION TO 
CAPITAL REQUIREMENT.—The definition of low-in-
come geographic area in section 351(3) of the Small 
Business Investment Act of 1958 (15 U.S.C. 
689(3)), as amended by subsection (a), shall apply 
to private capital raised under section 354(d)(1) of 
the Small Business Investment Act of 1958 (15 
U.S.C. 689c(d)(1)) before, on, or after the effective 
date of the amendment made by subsection (a). 
(b) STUDY ON AVAILABILITY OF EQUITY CAPITAL.— 
(1) STUDY REQUIRED.—Before the expiration 
of the 180-day period that begins on the date of the 
enactment of this Act, the Chief Counsel for Advo-
cacy of the Small Business Administration shall con-
duct a study on the availability of equity capital in 
low-income urban and rural areas. 
(2) REPORT.—Not later than 90 days after the 
completion of the study under paragraph (1) the Ad-
ministrator shall submit to Congress a report con-
taining the findings of the study required under
paragraph (1) and any recommendations of the Ad-
ministrator based on such study. 
SEC. 5. CONDITIONALLY APPROVED COMPANIES. 
(a) OPERATIONAL ASSISTANCE GRANTS TO CONDI-
TIONALLY APPROVED COMPANIES.—Section 358(a) of the 
Small Business Investment Act of 1958 (15 U.S.C. 
689(a)) is amended by adding at the end the following 
new paragraph: 
‘‘(6) GRANTS
TO
CONDITIONALLY
APPROVED 
COMPANIES.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graphs (A) and (B), upon the request of a com-
pany 
conditionally-approved 
under 
section 
354(c), the Administrator shall make a grant to 
the company under this subsection. 
‘‘(B) REPAYMENT BY COMPANIES NOT AP-
PROVED.—If a company receives a grant under 
paragraph (6) and does not enter into a partici-
pation agreement for final approval, the com-
pany shall repay the amount of the grant to the 
Administrator. 
‘‘(C) DEDUCTION
FROM
GRANT
TO
AP-
PROVED
COMPANY.—If a company receives a 
grant under paragraph (6) and receives final 
approval under section 354(e), the Adminis-