adjusted as necessary to ensure that amounts made avail-
able are fully used.’’. 
TITLE V—VENTURE CAPITAL 
INVESTMENT STANDARDS 
SEC. 501. DETERMINING WHETHER BUSINESS CONCERN IS 
INDEPENDENTLY OWNED AND OPERATED. 
Section 3(a) of the Small Business Act (15 U.S.C. 
632(a)) is amended by adding at the end the following: 
‘‘(5) NON-AFFILIATION OF VENTURE CAPITAL 
FROM
CONSIDERATION
OF
SMALL
BUSINESS
CON-
CERN.—For purposes of determining whether a 
small business concern is independently owned and 
operated under paragraph (1) or meets the small 
business size standards instituted under paragraph 
(2), the Administrator shall not consider a concern 
that has received financing from a venture capital 
operating company to be affiliated with either the 
venture capital operating company or any other 
business which the venture capital operating com-
pany has financed. 
‘‘(6) DEFINITION OF ‘INDEPENDENTLY OWNED 
AND OPERATED’.—For purposes of this section, a 
business concern shall be deemed to be ‘independ-
ently owned and operated’ if it is owned in majority 
part by one or more natural persons or venture cap-
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ital operating companies meeting the definition in 
paragraph (7). 
‘‘(7) DEFINITION OF ‘VENTURE CAPITAL OPER-
ATING COMPANY’.—For purposes of this section, the 
term ‘venture capital operating company’ means a 
business concern— 
‘‘(A) that— 
‘‘(i) is a Venture Capital Operating 
Company, as that term is defined in regu-
lations promulgated by the Secretary of 
Labor; or 
‘‘(ii) is an entity that— 
‘‘(I) is registered under the In-
vestment Company Act of 1940 (15 
U.S.C. 80a–51 et seq.); 
‘‘(II) is an investment company, 
as defined in section 3(c)(14) of such 
Act (15 U.S.C. 80a–3(c)(14)), which 
is not registered under such Act be-
cause it is beneficially owned by less 
than 100 persons; or 
‘‘(III) is a nonprofit organization 
affiliated with, or serving as a patent 
and licensing organization for, a uni-
versity or other institution of higher 
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education and that invests primarily 
in small business concerns; and 
‘‘(B) that is not controlled by any business 
concern that is not a small business concern 
within the meaning of section 3; and 
‘‘(C) that has fewer than 500 employees; 
and 
‘‘(D) that is itself a business concern in-
corporated and domiciled in the United States, 
or is controlled by a business concern that is in-
corporated 
and 
domiciled 
in 
the 
United 
States.’’. 
TITLE VI—REGULATIONS 
SEC. 601. REGULATIONS. 
Not later than 90 days after the date of the enact-
ment of this Act, the Administrator shall issue revisions 
to all existing regulations as necessary to ensure their con-
formity with the amendments made by this Act. 
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Union Calendar No. 216 
110TH CONGRESS 
1ST SESSION 
H. R. 3567 
[Report No. 110–347] 
A BILL 
To amend the Small Business Investment Act of 
1958 to expand opportunities for investments in 
small businesses, and for other purposes. 
SEPTEMBER 25, 2007 
Committed to the Committee of the Whole House on the 
State of the Union and ordered to be printed 
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