IB 
Union Calendar No. 216 
110TH CONGRESS 
1ST SESSION H. R. 3567 
[Report No. 110–347] 
To amend the Small Business Investment Act of 1958 to expand opportunities 
for investments in small businesses, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 18, 2007 
Mr. ALTMIRE (for himself, Mr. GRAVES, and Ms. VELA´ZQUEZ) introduced the 
following bill; which was referred to the Committee on Small Business 
SEPTEMBER 25, 2007 
Additional sponsor: Mr. TOWNS 
SEPTEMBER 25, 2007 
Committed to the Committee of the Whole House on the State of the Union 
and ordered to be printed 
A BILL 
To amend the Small Business Investment Act of 1958 to 
expand opportunities for investments in small businesses, 
and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Small Business Investment Expansion Act of 2007’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—SMALL BUSINESS INVESTMENT COMPANY PROGRAM 
Sec. 101. Simplified maximum leverage limits. 
Sec. 102. Increased investments in women-owned and socially disadvantaged 
small businesses. 
Sec. 103. Increased investments in smaller enterprises. 
Sec. 104. Simplified aggregate investment limitations. 
TITLE II—NEW MARKETS VENTURE CAPITAL PROGRAM 
Sec. 201. Expansion of New Markets Venture Capital Program. 
Sec. 202. Improved nationwide distribution. 
Sec. 203. Increased investment in small manufacturers. 
Sec. 204. Updating definition of low-income geographic area. 
Sec. 205. Study on availability of equity capital. 
Sec. 206. Expanding operational assistance to conditionally approved compa-
nies. 
Sec. 207. Streamlined application for New Markets Venture Capital Program. 
Sec. 208. Elimination of matching requirement. 
Sec. 209. Simplified formula for operational assistance grants. 
Sec. 210. Authorization of appropriations and dedication to small manufac-
turing. 
TITLE III—ANGEL INVESTMENT PROGRAM 
Sec. 301. Establishment of Angel Investment Program. 
TITLE IV—SURETY BOND PROGRAM 
Sec. 401. Study and report. 
Sec. 402. Preferred Surety Bond Program. 
Sec. 403. Denial of liability. 
Sec. 404. Increasing the bond threshold. 
Sec. 405. Fees. 
TITLE V—VENTURE CAPITAL INVESTMENT STANDARDS 
Sec. 501. Determining whether business concern is independently owned and 
operated. 
TITLE VI—REGULATIONS 
Sec. 601. Regulations. 
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TITLE I—SMALL BUSINESS IN-
VESTMENT 
COMPANY 
PRO-
GRAM 
SEC. 101. SIMPLIFIED MAXIMUM LEVERAGE LIMITS. 
Section 303(b) of the Small Business Investment Act 
of 1958 (15 U.S.C. 683(b)) is amended— 
(1) by amending paragraph (2) to read as fol-
lows: 
‘‘(2) MAXIMUM LEVERAGE.— 
‘‘(A) 
IN
GENERAL.—The 
maximum 
amount of outstanding leverage made available 
to any one company licensed under section 
301(c) of this Act may not exceed the lesser 
of— 
‘‘(i) 300 percent of such company’s 
private capital; or 
‘‘(ii) $150,000,000. 
‘‘(B) MULTIPLE
LICENSES
UNDER
COM-
MON CONTROL.—The maximum amount of out-
standing leverage made available to two or more 
companies licensed under section 301(c) of this 
Act that are commonly controlled (as deter-
mined by the Administrator) and not under 
capital 
impairment 
may 
not 
exceed 
$225,000,000.’’; and 
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(2) by striking paragraph (4). 
SEC. 102. INCREASED INVESTMENTS IN WOMEN-OWNED 
AND 
SOCIALLY 
DISADVANTAGED 
SMALL 
BUSINESSES. 
Section 303(b)(2) of the Small Business Investment 
Act of 1958 (15 U.S.C. 683(b)(2)), as amended by section 
101, is further amended by adding at the end the fol-
lowing: 
‘‘(C) 
INCREASED
INVESTMENTS
IN 
WOMEN-OWNED AND SOCIALLY DISADVANTAGED 
SMALL
BUSINESSES.—The limits provided in 
subparagraphs 
(A)(ii) 
and 
(B) 
shall 
be 
$175,000,000 and $250,000,000, respectively, 
for any company that certifies in writing that 
not less than 50 percent of the company’s ag-
gregate dollar amount of investments will be 
made in small businesses that prior to the in-
vestment are— 
‘‘(i) majority owned by one or more— 
‘‘(I) socially or economically dis-
advantaged individuals (as defined by 
Administrator); 
‘‘(II) veterans of the Armed 
Forces; or 
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‘‘(III) current or former members 
of the National Guard or Reserve; or 
‘‘(ii) located in a low-income geo-
graphic area (as defined in section 351).’’. 
SEC. 103. INCREASED INVESTMENTS IN SMALLER ENTER-
PRISES. 
Section 303 of the Small Business Investment Act 
of 1958 (15 U.S.C. 683) is amended by striking sub-
section (d) and inserting the following: 
‘‘(d) INCREASED INVESTMENTS IN SMALLER ENTER-
PRISES.—The Administrator shall require each licensee, 
as a condition of an application for leverage, to certify in 
writing that not less than 25 percent of the licensee’s ag-
gregate dollar amount of financings will be provide to 
smaller enterprises (as defined in section 103(12)).’’. 
SEC. 104. SIMPLIFIED AGGREGATE INVESTMENT LIMITA-
TIONS. 
Section 306(a) of the Small Business Investment Act 
of 1958 (15 U.S.C. 686(a)) is amended to read as follows: 
‘‘(a) If any small business investment company has 
obtained financing from the Administration and such fi-
nancing remains outstanding, the aggregate amount of se-
curities acquired and for which commitments may be 
issued by such company under the provisions of this title 
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for any single enterprise shall not, without the approval 
of the Administration, exceed 10 percent of the sum of— 
‘‘(1) the private capital of such company; and 
‘‘(2) the total amount of leverage projected by 
the company in the company’s business plan that 
was approved by the Administration at the time of 
the grant of the company’s license.’’. 
TITLE II—NEW MARKETS 
VENTURE CAPITAL PROGRAM 
SEC. 201. EXPANSION OF NEW MARKETS VENTURE CAPITAL 
PROGRAM. 
(a) ADMINISTRATION PARTICIPATION REQUIRED.— 
Section 353 of the Small Business Investment Act of 1958 
(15 U.S.C. 689b) is amended by striking ‘‘under which 
the Administrator may’’ and inserting ‘‘under which the 
Administrator shall’’. 
(b) 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. 
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SEC. 202. IMPROVED NATIONWIDE DISTRIBUTION. 
Section 354 of the Small Business Investment Act 
of 1958 (15 U.S.C. 689c) is amended by adding at the 
end the following: 
‘‘(f) GEOGRAPHIC EXPANSION.—From among com-
panies submitting applications under subsection (b), the 
Administrator shall consider the selection criteria and na-
tionwide distribution under subsection (c) and shall, to the 
maximum extent practicable, approve at least one com-
pany from each geographic region of the Small Business 
Administration.’’. 
SEC. 203. INCREASED INVESTMENT IN SMALL MANUFAC-
TURERS. 
Section 354(d)(1) of the Small Business Investment 
Act of 1958 (15 U.S.C. 689c(d)(1)) is amended— 
(1) by striking ‘‘Each’’ and inserting the fol-
lowing: 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), each’’; and 
(2) by adding at the end the following: 
‘‘(B) SMALL MANUFACTURER INVESTMENT 
CAPITAL
REQUIREMENTS.—Each conditionally 
approved company engaged primarily in devel-
opment of and investment in small manufactur-
ers shall raise not less than $3,000,000 of pri-
vate capital or binding capital commitments 
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from one or more investors (other than agencies 
or departments of the Federal Government) 
who meet criteria established by the Adminis-
trator.’’. 
SEC. 204. UPDATING DEFINITION OF LOW-INCOME GEO-
GRAPHIC AREA. 
Section 351 of the Small Business Investment Act 
of 1958 (15 U.S.C. 689) is 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 same 
meaning given the term ‘low-income community’ in 
section 45D(e) of the Internal Revenue Code of 
1986 (26 U.S.C. 45D(e)).’’; and 
(3) by redesignating paragraphs (4) through 
(8) as (3) through (7), respectively. 
SEC. 205. STUDY ON AVAILABILITY OF EQUITY CAPITAL. 
(a) 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 Advocacy of the Small 
Business Administration shall conduct a study on the 
availability of equity capital in low-income urban and rural 
areas. 
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(b) REPORT.—Not later than 90 days after the com-
pletion of the study under subsection (a) the Adminis-
trator of the Small Business Administration shall submit 
to Congress a report containing the findings of the study 
required under subsection (a) and any recommendations 
of the Administrator based on such study. 
SEC. 206. EXPANDING OPERATIONAL ASSISTANCE TO CON-
DITIONALLY 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-
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