To amend the Small Business Investment Act of 1958 and the Small Business Act to include small business investment companies in the Small Business Innovation Research Program and the Small Business Technology Transfer Program, and for other purposes.

Bill: 115-hr-2489
Sponsor: full_name: Rep. Velazquez, Nydia M. [D-NY-7]
Introduced: 2017-05-17
Policy area: Commerce
Subjects: Business investment and capital

Research and development

Securities

Small business

Technology transfer and commercialization
Latest action: action_date: 2017-05-17
text: Referred to the House Committee on Small Business.

Summaries:
action_date: 2017-05-17
action_desc: Introduced in House
text: <p>This bill amends the Small Business Investment Act of 1958 to require the Small Business Administration (SBA), when calculating the outstanding leverage of a small business investment company (SBIC), to exclude investments made in Small Business Innovation Research (SBIR) participants and Small Business Technology Transfer (STTR) participants. (SBICs are subject to a limit on their outstanding leverage. SBIR and STTR participants are small business concerns that receive SBA contracts or grants for research and development.)</p> <p>The Small Business Act is amended to include SBICs as a type of investor (along with venture capital, hedge fund, and private equity firms) whose investment must be considered for various purposes under the SBIR and STTR programs.</p>

tv_txt: I 115th CONGRESS 1st Session H. R. 2489 IN THE HOUSE OF REPRESENTATIVES May 17, 2017 Ms. Velázquez introduced the following bill; which was referred to the Committee on Small Business A BILL To amend the Small Business Investment Act of 1958 and the Small Business Act to include small business investment companies in the Small Business Innovation Research Program and the Small Business Technology Transfer Program, and for other purposes.

1. Calculation of leverage of small business investment companies that invest in SBIR or STTR participants Section 303(b)(2) of the Small Business Investment Act of 1958 ( 15 U.S.C. 683(b)(2) ) is amended by adding at the end the following new subparagraph: (E) Investments in SBIR and STTR participants (i) In general Subject to clause (ii), in calculating the outstanding leverage of a company for purposes of subparagraph (A), the Administrator shall exclude the amount of any investment made in an SBIR or STTR participant, if such investment is made in the first fiscal year after the date of enactment of this subparagraph or any fiscal year thereafter by a company licensed in the applicable fiscal year. (ii) Limitations (I) Amount of exclusion The amount excluded under clause (i) for a company shall not exceed 33 percent of the private capital of that company. (II) Maximum investment A company shall not make an investment in any one SBIR or STTR participant in an amount equal to more than 20 percent of the private capital of that company. (III) Other terms The exclusion of amounts under clause (i) shall be subject to such terms as the Administrator may impose to ensure that there is no cost (as that term is defined in section 502 of the Federal Credit Reform Act of 1990 ( 2 U.S.C. 661a )) with respect to purchasing or guaranteeing any debenture involved. (iii) Definitions In this subsection, the term SBIR or STTR participant means a small business concern that receives contracts or grants pursuant to section 9 of the Small Business Act. . 2. Inclusion of small business investment companies in SBIR and STTR Section 9 of the Small Business Act ( 15 U.S.C. 638 ) is amended— (1) by striking or private equity firm investment each place such term appears and inserting private equity firm, or SBIC investment ; (2) by striking or private equity firms and inserting private equity firms, or SBICs ; (3) in subsection (e)— (A) in paragraph (12)(B), by striking and at the end; (B) in paragraph (13)(B), by striking the period at the end and inserting ; and ; and (C) by adding at the end the following new paragraph: (14) the term SBIC means a small business investment company as defined in section 103 of the Small Business Investment Act of 1958. ; and (4) in the heading for subsection (dd), by striking or Private Equity Firms and inserting Private Equity Firms, or SBICs .