SBIC Capital Infusion Act of 2020

Bill: 116-hr-6342
Sponsor: full_name: Rep. Davids, Sharice [D-KS-3]
Introduced: 2020-03-23
Policy area: Commerce
Subjects: Business investment and capital

Cardiovascular and respiratory health

Emergency medical services and trauma care

Infectious and parasitic diseases

Small business
Latest action: action_date: 2020-03-23
text: Referred to the House Committee on Small Business.

Summaries:
action_date: 2020-03-23
action_desc: Introduced in House
text: <p><b>SBIC Capital Infusion Act of 2020</b></p> <p>This bill provides economic assistance to small businesses affected by COVID-19 (i.e., coronavirus disease 2019), and it reestablishes the New Markets Venture Capital Program.</p> <p>Specifically, the bill provides additional leverage for small business investment companies (SBICs) by requiring the Small Business Administration (SBA), when calculating the maximum amount of outstanding leverage made available to SBICs, to exclude a certain amount of outstanding leverage to small businesses affected by COVID-19. Any excluded amounts must be used solely for working capital purposes.</p> <p>The bill also reestablishes the New Markets Venture Capital Program, through which the SBA, in partnership with investment companies, encourages developmental venture capital investment in small businesses located in low-income areas.</p>

tv_txt: I 116th CONGRESS 2d Session H. R. 6342 IN THE HOUSE OF REPRESENTATIVES March 23, 2020 Ms. Davids of Kansas introduced the following bill; which was referred to the Committee on Small Business A BILL To amend the Small Business Investment Act of 1958 to provide additional assistance for small businesses affected by the COVID–19 outbreak, and for other purposes.

1. Short title This Act may be cited as the SBIC Capital Infusion Act of 2020 . 2. Additional leverage for small businesses affected by the COVID–19 outbreak (a) In general 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: (E) Additional leverage base on investment (i) Exclusion of amounts In calculating the outstanding leverage of a company for purposes of subparagraph (A) or (B), the Administrator shall exclude the amount of leverage outstanding to covered small businesses, not to exceed an amount equal to $100,000,000, if the amount excluded is used exclusively for working capital purposes. (ii) Covered small business defined In this subparagraph, the term covered small business means a small business concern is located in a State or United States territory with at least one confirmed or presumed positive case of COVID–19. . (b) Application Notwithstanding any other provision of law, for purposes of additional leverage requested under subparagraph (E) of section 303(b)(2) of the Small Business Investment Act of 1958, as added by subsection (a), the Administrator shall approve or deny such request within 14 calendar days of receipt by the Administrator of the request. 3. New Markets Venture Capital Program Section 368(a) of the Small Business Investment Act of 1958 ( 15 U.S.C. 689q(a) ) is amended— (1) by striking fiscal years 2001 through 2006 and inserting fiscal years 2020 through 2025 ; (2) in paragraph (1), by striking $150,000,000 and inserting $10,000,000,000 ; and (3) in paragraph (2), by striking $30,000,000 and inserting $2,000,000,000 .