I 
112TH CONGRESS 
2D SESSION 
H. R. 6099 
To amend the Public Works and Economic Development Act of 1965 with 
respect to grants for economic adjustment, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 11, 2012 
Mr. CARNAHAN (for himself, Mr. POLIS, Mr. HONDA, and Mr. HINCHEY) in-
troduced the following bill; which was referred to the Committee on 
Transportation and Infrastructure, and in addition to the Committee on 
Financial Services, for a period to be subsequently determined 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 Public Works and Economic Development 
Act of 1965 with respect to grants for economic adjust-
ment, 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 ‘‘Supporting Entrepre-
neurial Economic Development Act of 2012’’ or the 
‘‘SEED Act of 2012’’. 
SEC. 2. FINDINGS. 
Congress finds the following: 
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(1) During the period from 1980 to 2005, busi-
nesses that were less than 5 years old accounted for 
almost all net job creation in the United States. 
(2) Efforts to support regional innovation clus-
ters have facilitated the creation and growth of 
early-stage businesses that utilize local assets and 
talent. 
(3) Across the United States, 651 businesses 
were created from university research in 2009. 
(4) Regions that have organized efforts to sup-
port innovation and entrepreneurship are spurring 
economic recovery in those regions. 
(5) Venture development organizations have an 
excellent track record for creating and growing 
early-stage technology businesses through invest-
ment, extensive mentoring, and the provision of sup-
port services that position those businesses to raise 
additional funds or create a product or service for 
market. 
(6) Acquiring financing solely through loans is 
inadequate for early-stage technology businesses be-
cause of their stage of development and capital-in-
tensive investment in research and development. 
(7) Assisting venture development organizations 
to use diverse funding tools to support early-stage 
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technology businesses will accelerate the development 
of those businesses, rapidly create jobs, and bring 
new products and services to market. 
SEC. 3. DIRECT EXPENDITURE OR REDISTRIBUTION BY RE-
CIPIENT. 
Section 217 of the Public Works and Economic De-
velopment Act of 1965 (42 U.S.C. 3154c) is amended— 
(1) in subsection (c) by striking ‘‘Subject to 
subsection (d)’’ and inserting ‘‘Subject to sub-
sections (d) and (e)’’; 
(2) by striking subsection (d) and inserting the 
following: 
‘‘(d) LIMITATION.— 
‘‘(1) IN GENERAL.—Under subsection (c), a re-
cipient may not make a grant, equity investment, or 
convertible loan to a private for-profit entity. 
‘‘(2) EXCEPTION.—Notwithstanding paragraph 
(1), a venture development organization may make 
a grant, equity investment, or convertible loan to a 
private for-profit entity.’’; and 
(3) by adding at the end the following: 
‘‘(e) RETURN ON INVESTMENT.—If a venture devel-
opment organization that assists a private for-profit entity 
with funds made available from a grant under section 209 
receives funds from the private for-profit entity, at any 
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time, as a result of such assistance, the venture develop-
ment organization shall use such funds only to assist, in-
cluding through grants, equity investments, and convert-
ible loans, other private for-profit entities. 
‘‘(f) VENTURE DEVELOPMENT ORGANIZATION DE-
FINED.—In this section, the term ‘venture development 
organization’ means a public entity or private, nonprofit 
entity that provides to an early-stage technology business, 
to promote the growth of that business, each of the fol-
lowing: 
‘‘(1) Financial investment or assistance acquir-
ing financial investment. 
‘‘(2) Expert mentoring. 
‘‘(3) Assistance to speed the commercialization 
of technology.’’. 
Æ 
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