SBIC Advisory Committee Act of 2022

Bill: 117-s-2521
Sponsor: full_name: Sen. Cardin, Benjamin L. [D-MD]
Introduced: 2021-07-28
Policy area: Commerce
Subjects: Advisory bodies

Business investment and capital

Congressional oversight

Minority and disadvantaged businesses

Poverty and welfare assistance

Rural conditions and development

Small business
Latest action: action_date: 2022-09-29
text: Held at the desk.

Summaries:
action_date: 2021-07-28
action_desc: Introduced in Senate
text: <p><b>SBIC Working Group Act of 2021</b></p> <p>This bill requires the Small Business Administration (SBA) to establish a working group to develop recommendations for expanding SBA assistance provided through Small Business Investment Companies (SBICs). SBICs are privately owned companies, licensed and regulated by the SBA, which invest in small businesses through debt and equity.</p> <p>Composed in part of representatives of and partners with small businesses in low-income communities and rural areas, the working group must make recommendations for (1) how the SBA can increase the number of applicants to become SBICs, particularly in low-income, underserved, and rural communities and areas; and (2) incentivizing investment by and location of SBICs in underfinanced states. </p>

action_date: 2022-02-17
action_desc: Reported to Senate
text: <p><b>SBIC Advisory Committee Act of 202</b><strong>2</strong><strong></strong></p> <p>This bill requires the Small Business Administration (SBA) to establish an advisory committee to develop recommendations for expanding SBA assistance provided through Small Business Investment Companies (SBICs). SBICs are privately owned companies, licensed and regulated by the SBA, which invest in small businesses through debt and equity.</p> <p>Composed in part of representatives of and partners with small businesses in low-income communities and rural areas, the advisory committee must make recommendations for (1) how the SBA can increase the number of applicants to become SBICs, particularly in low-income, underserved, and rural communities and areas; and (2) incentivizing investment by and location of SBICs in underfinanced states. </p>

action_date: 2022-09-28
action_desc: Passed Senate
text: <p><b>SBIC Advisory Committee Act of 202</b><strong>2</strong><strong></strong></p> <p>This bill requires the Small Business Administration (SBA) to establish an advisory committee to develop recommendations for expanding SBA assistance provided through Small Business Investment Companies (SBICs). SBICs are privately owned companies, licensed and regulated by the SBA, which invest in small businesses through debt and equity.</p> <p>Composed in part of representatives of and partners with small businesses in low-income communities and rural areas, the advisory committee must make recommendations for SBICs to invest in (1) underlicensed and underfinanced states; and (2) small businesses owned by socially or economically disadvantaged individuals, veterans, and women.</p>

tv_txt: II 117th CONGRESS 1st Session S. 2521 IN THE SENATE OF THE UNITED STATES July 28, 2021 Mr. Cardin (for himself and Mr. Risch ) introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship A BILL To require the Administrator of the Small Business Administration to establish an SBIC Working Group, and for other purposes.

1. Short title This Act may be cited as the SBIC Working Group Act of 2021 . 2. SBIC working group (a) Definitions In this section— (1) the terms Administration and Administrator mean the Small Business Administration and the Administrator thereof, respectively; (2) the term covered Members means the Chair and Ranking Member of— (A) the Committee on Small Business and Entrepreneurship of the Senate; and (B) the Committee on Small Business of the House of Representatives; (3) the terms licensee , small business investment company , and underlicensed State have the meanings given those terms in section 301 of the Small Business Investment Act of 1958 ( 15 U.S.C. 662 ); (4) the term low-income community has the meaning given the term in section 45D(e) of the Internal Revenue Code of 1986; (5) the term rural area has the meaning given the term by the Bureau of the Census; (6) the terms small business concern , small business concern owned and controlled by veterans , and small business concern owned and controlled by women have the meanings given those terms in section 3 of the Small Business Act ( 15 U.S.C. 632 ); (7) the term socially or economically disadvantaged individual means a socially disadvantaged individual or economically disadvantaged individual, as described in paragraphs (5) and (6)(A), respectively, of section 8(a) of the Small Business Act ( 15 U.S.C. 637(a) ); (8) the term underfinanced State means a State that has below median financing, as determined by the Administrator; and (9) the term underserved community means— (A) a HUBZone, as defined in section 31(b) of the Small Business Act ( 15 U.S.C. 657a(b) ); (B) a community that has been designated as an empowerment zone or an enterprise community under section 1391 of the Internal Revenue Code of 1986; (C) a community that has been designated as a promise zone by the Secretary of Housing and Urban Development; and (D) a community that has been designated as a qualified opportunity zone under section 1400Z–1 of the Internal Revenue Code of 1986. (b) Establishment Not later than 90 days after the date on which the covered Members submit to the Administrator a notification that the covered Members have made all selections described in subparagraphs (A)(ii), (B)(ii), and (D) of paragraph (1) (and that the individuals so selected have accepted those assignments), the Administrator shall establish an SBIC Working Group (referred to in this section as the Working Group ), which shall— (1) include— (A) 4 representatives— (i) among general partners of licensees that have a demonstrated record of investing in— (I) low-income communities; (II) communities that have been designated as qualified opportunity zones under section 1400Z–1 of the Internal Revenue Code of 1986; (III) businesses primarily engaged in research and development; (IV) manufacturers; (V) businesses primarily owned or controlled by individuals in underserved communities before receiving capital from the licensee; and (VI) rural areas; and (ii) of whom— (I) 1 shall be selected by the Chair of the Committee on Small Business and Entrepreneurship of the Senate; (II) 1 shall be selected by the Ranking Member of the Committee on Small Business and Entrepreneurship of the Senate; (III) 1 shall be selected by the Chair of the Committee on Small Business of the House of Representatives; and (IV) 1 shall be selected by the Ranking Member of the Committee on Small Business of the House of Representatives; (B) 4 representatives— (i) from licensees, of whom 1 shall be an owner of a small business investment company or fund manager that is located in— (I) a low-income community; (II) a community that has been designated as a qualified opportunity zone under section 1400Z–1 of the Internal Revenue Code of 1986; (III) an underserved community; (IV) a rural area; or (V) an underfinanced State; and (ii) of whom— (I) 1 shall be selected by the Chair of the Committee on Small Business and Entrepreneurship of the Senate; (II) 1 shall be selected by the Ranking Member of the Committee on Small Business and Entrepreneurship of the Senate; (III) 1 shall be selected by the Chair of the Committee on Small Business of the House of Representatives; and (IV) 1 shall be selected by the Ranking Member of the Committee on Small Business of the House of Representatives; (C) the Associate Administrator for the Office of Investment and Innovation of the Administration, who shall— (i) serve as the Chair of the Working Group; and (ii) select not more than 4 additional representatives from the Office of Investment and Innovation of the Administration to serve as representatives of the Working Group; and (D) 4 representatives from the investment industry or academia, or who are bank limited partners, with expertise in developing and monitoring interventions to expand the investment industry, of whom— (i) 1 shall be selected by the Chair of the Committee on Small Business and Entrepreneurship of the Senate; (ii) 1 shall be selected by the Ranking Member of the Committee on Small Business and Entrepreneurship of the Senate; (iii) 1 shall be selected by the Chair of the Committee on Small Business of the House of Representatives; and (iv) 1 shall be selected by the Ranking Member of the Committee on Small Business of the House of Representatives; (2) develop recommendations regarding how the Administrator could increase the number of— (A) applicants to become small business investment companies, with a focus on management teams or companies located in— (i) low-income communities; (ii) communities that have been designated as qualified opportunity zones under section 1400Z–1 of the Internal Revenue Code of 1986; (iii) underserved communities; and (iv) rural areas; and (B) investments made in underfinanced States; (3) develop recommendations for incentives for small business investment companies to— (A) invest and locate in underlicensed States and underfinanced States; and (B) invest in small business concerns, including those owned and controlled by socially or economically disadvantaged individuals, small business concerns owned and controlled by veterans, and small business concerns owned and controlled by women; and (4) develop recommendations for metrics of success, and benchmarks for success, with respect to the goals described in this section. (c) Availability of meetings The Working Group may make the meetings of the Working Group open to the public without regard to whether those meetings are held in-person, virtually, or by some other means. (d) Report Not later than 1 year after the date on which the Administrator establishes the Working Group under subsection (b), the Working Group shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report that includes— (1) the recommendations of the Working Group; and (2) a recommended plan and timeline for implementing the recommendations described in paragraph (1). (e) Termination The Working Group shall terminate on the date on which the Working Group submits the report required under subsection (d). (f) Applicability of federal advisory committee act The Federal Advisory Committee Act (5 U.S.C. App.) shall not apply with respect to the Working Group or the activities of the Working Group.

tv_txt: II Calendar No. 280 117th CONGRESS 2d Session S. 2521 IN THE SENATE OF THE UNITED STATES July 28, 2021 Mr. Cardin (for himself, Mr. Risch , and Mr. Coons ) introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship February 17, 2022 Reported by Mr. Cardin , with an amendment and an amendment to the title Strike out all after the enacting clause and insert the part printed in italic A BILL To require the Administrator of the Small Business Administration to establish an SBIC Working Group, and for other purposes.

1. Short title This Act may be cited as the SBIC Working Group Act of 2021 . 2. SBIC working group (a) Definitions In this section— (1) the terms Administration and Administrator mean the Small Business Administration and the Administrator thereof, respectively; (2) the term covered Members means the Chair and Ranking Member of— (A) the Committee on Small Business and Entrepreneurship of the Senate; and (B) the Committee on Small Business of the House of Representatives; (3) the terms licensee , small business investment company , and underlicensed State have the meanings given those terms in section 301 of the Small Business Investment Act of 1958 ( 15 U.S.C. 662 ); (4) the term low-income community has the meaning given the term in section 45D(e) of the Internal Revenue Code of 1986; (5) the term rural area has the meaning given the term by the Bureau of the Census; (6) the terms small business concern , small business concern owned and controlled by veterans , and small business concern owned and controlled by women have the meanings given those terms in section 3 of the Small Business Act ( 15 U.S.C. 632 ); (7) the term socially or economically disadvantaged individual means a socially disadvantaged individual or economically disadvantaged individual, as described in paragraphs (5) and (6)(A), respectively, of section 8(a) of the Small Business Act ( 15 U.S.C. 637(a) ); (8) the term underfinanced State means a State that has below median financing, as determined by the Administrator; and (9) the term underserved community means— (A) a HUBZone, as defined in section 31(b) of the Small Business Act ( 15 U.S.C. 657a(b) ); (B) a community that has been designated as an empowerment zone or an enterprise community under section 1391 of the Internal Revenue Code of 1986; (C) a community that has been designated as a promise zone by the Secretary of Housing and Urban Development; and (D) a community that has been designated as a qualified opportunity zone under section 1400Z–1 of the Internal Revenue Code of 1986. (b) Establishment Not later than 90 days after the date on which the covered Members submit to the Administrator a notification that the covered Members have made all selections described in subparagraphs (A)(ii), (B)(ii), and (D) of paragraph (1) (and that the individuals so selected have accepted those assignments), the Administrator shall establish an SBIC Working Group (referred to in this section as the Working Group ), which shall— (1) include— (A) 4 representatives— (i) among general partners of licensees that have a demonstrated record of investing in— (I) low-income communities; (II) communities that have been designated as qualified opportunity zones under section 1400Z–1 of the Internal Revenue Code of 1986; (III) businesses primarily engaged in research and development; (IV) manufacturers; (V) businesses primarily owned or controlled by individuals in underserved communities before receiving capital from the licensee; and (VI) rural areas; and (ii) of whom— (I) 1 shall be selected by the Chair of the Committee on Small Business and Entrepreneurship of the Senate; (II) 1 shall be selected by the Ranking Member of the Committee on Small Business and Entrepreneurship of the Senate; (III) 1 shall be selected by the Chair of the Committee on Small Business of the House of Representatives; and (IV) 1 shall be selected by the Ranking Member of the Committee on Small Business of the House of Representatives; (B) 4 representatives— (i) from licensees, of whom 1 shall be an owner of a small business investment company or fund manager that is located in— (I) a low-income community; (II) a community that has been designated as a qualified opportunity zone under section 1400Z–1 of the Internal Revenue Code of 1986; (III) an underserved community; (IV) a rural area; or (V) an underfinanced State; and (ii) of whom— (I) 1 shall be selected by the Chair of the Committee on Small Business and Entrepreneurship of the Senate; (II) 1 shall be selected by the Ranking Member of the Committee on Small Business and Entrepreneurship of the Senate; (III) 1 shall be selected by the Chair of the Committee on Small Business of the House of Representatives; and (IV) 1 shall be selected by the Ranking Member of the Committee on Small Business of the House of Representatives; (C) the Associate Administrator for the Office of Investment and Innovation of the Administration, who shall— (i) serve as the Chair of the Working Group; and (ii) select not more than 4 additional representatives from the Office of Investment and Innovation of the Administration to serve as representatives of the Working Group; and (D) 4 representatives from the investment industry or academia, or who are bank limited partners, with expertise in developing and monitoring interventions to expand the investment industry, of whom— (i) 1 shall be selected by the Chair of the Committee on Small Business and Entrepreneurship of the Senate; (ii) 1 shall be selected by the Ranking Member of the Committee on Small Business and Entrepreneurship of the Senate; (iii) 1 shall be selected by the Chair of the Committee on Small Business of the House of Representatives; and (iv) 1 shall be selected by the Ranking Member of the Committee on Small Business of the House of Representatives; (2) develop recommendations regarding how the Administrator could increase the number of— (A) applicants to become small business investment companies, with a focus on management teams or companies located in— (i) low-income communities; (ii) communities that have been designated as qualified opportunity zones under section 1400Z–1 of the Internal Revenue Code of 1986; (iii) underserved communities; and (iv) rural areas; and (B) investments made in underfinanced States; (3) develop recommendations for incentives for small business investment companies to— (A) invest and locate in underlicensed States and underfinanced States; and (B) invest in small business concerns, including those owned and controlled by socially or economically disadvantaged individuals, small business concerns owned and controlled by veterans, and small business concerns owned and controlled by women; and (4) develop recommendations for metrics of success, and benchmarks for success, with respect to the goals described in this section. (c) Availability of meetings The Working Group may make the meetings of the Working Group open to the public without regard to whether those meetings are held in-person, virtually, or by some other means. (d) Report Not later than 1 year after the date on which the Administrator establishes the Working Group under subsection (b), the Working Group shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report that includes— (1) the recommendations of the Working Group; and (2) a recommended plan and timeline for implementing the recommendations described in paragraph (1). (e) Termination The Working Group shall terminate on the date on which the Working Group submits the report required under subsection (d). (f) Applicability of federal advisory committee act The Federal Advisory Committee Act (5 U.S.C. App.) shall not apply with respect to the Working Group or the activities of the Working Group.

1. Short title This Act may be cited as the SBIC Advisory Committee Act of 2022 . 2. SBIC Advisory Committee (a) Definitions In this section— (1) the terms Administration and Administrator mean the Small Business Administration and the Administrator thereof, respectively; (2) the term Advisory Committee means the SBIC Advisory Committee established under subsection (b); (3) the term covered Members means the Chair and Ranking Member of— (A) the Committee on Small Business and Entrepreneurship of the Senate; and (B) the Committee on Small Business of the House of Representatives; (4) the terms licensee , small business investment company , and underlicensed State have the meanings given those terms in section 103 of the Small Business Investment Act of 1958 ( 15 U.S.C. 662 ); (5) the term low-income community has the meaning given the term in section 45D(e) of the Internal Revenue Code of 1986; (6) the term rural area has the meaning given the term by the Bureau of the Census; (7) the terms small business concern , small business concern owned and controlled by veterans , and small business concern owned and controlled by women have the meanings given those terms in section 3 of the Small Business Act ( 15 U.S.C. 632 ); (8) the term socially or economically disadvantaged individual means a socially disadvantaged individual or economically disadvantaged individual, as described in paragraphs (5) and (6)(A), respectively, of section 8(a) of the Small Business Act ( 15 U.S.C. 637(a) ); (9) the term underfinanced State means a State that has below median financing, as determined by the Administrator; and (10) the term underserved community means— (A) a HUBZone, as defined in section 31(b) of the Small Business Act ( 15 U.S.C. 657a(b) ); (B) a community that has been designated as an empowerment zone or an enterprise community under section 1391 of the Internal Revenue Code of 1986; (C) a community that has been designated as a promise zone by the Secretary of Housing and Urban Development; and (D) a community that has been designated as a qualified opportunity zone under section 1400Z–1 of the Internal Revenue Code of 1986. (b) Establishment The Administrator shall establish an SBIC Advisory Committee to convene outside experts to advise on the small business investment program under title III of the Small Business Investment Act of 1958 ( 15 U.S.C. 681 et seq. ). (c) Composition (1) Membership The Advisory Committee shall be composed of 16 members appointed by the Administrator as follows: (A) The Associate Administrator of the Office of Investment and Innovation of the Small Business Administration, or another designee of the Administrator as determined by the Administrator. (B) 7 members with competence, interest, or knowledge of the small business investment program under title III of the Small Business Investment Act of 1958 ( 15 U.S.C. 681 et seq. ), of whom— (i) not fewer than 3 shall have a demonstrated record of expertise in investing in— (I) low-income communities; (II) communities that have been designated as qualified opportunity zones under section 1400Z–1 of the Internal Revenue Code of 1986; (III) businesses primarily engaged in research and development; (IV) manufacturers; (V) businesses primarily owned or controlled by individuals in underserved communities before receiving capital from the licensee; (VI) rural areas; or (VII) underfinanced States; and (ii) not fewer than 1 member shall be a representative from a trade association for the small business investment program under title III of the Small Business Investment Act of 1958 ( 15 U.S.C. 681 et seq. ). (C) 8 members appointed by the Administrator as follows: (i) 2 members shall be selected from among the individuals on the list submitted by the Chair of the Committee on Small Business and Entrepreneurship of the Senate under paragraph (2). (ii) 2 members shall be selected from among the individuals on the list submitted by the Ranking Member of the Committee on Small Business and Entrepreneurship of the Senate under paragraph (2). (iii) 2 members shall be selected from among the individuals on the list submitted by the Chair of the Committee on Small Business of the House of Representatives under paragraph (2). (iv) 2 members shall be selected from among the individuals on the list submitted by the Ranking Member of the Committee on Small Business of the House of Representatives under paragraph (2). (2) Recommendations Not later than 30 days after the date of enactment of this Act, each of the covered Members shall provide to the Administrator a list of 3 candidates for membership on the Advisory Committee, who shall be individuals who hold a high-ranking position or senior leadership role, and have no conflict of interest in the small business investment program under title III of the Small Business Investment Act of 1958 ( 15 U.S.C. 681 et seq. ), in— (A) a relevant industry trade association; (B) the investment industry with expertise in pensions, endowments, and other non-banking institutions; (C) academia with expertise in the investment industry; or (D) a nonprofit institution, including one that serves any of the communities, entities, or areas described in subclauses (I) through (VII) of paragraph (1)(B)(i). (3) Chairperson The Chairperson of the Advisory Committee shall be the member of the Advisory Committee appointed under paragraph (1)(A). (4) Period of appointment Members of the Advisory Committee shall be appointed for the life of the Advisory Committee. (5) Vacancies Any vacancy in the Advisory Committee shall be filled in the same manner as the original appointment. (d) Deadline for appointment Not later than 60 days after the date on which the covered Members provide the lists to the Administrator under subsection (c)(2), the Administrator shall— (1) appoint the members of the Advisory Committee; and (2) submit to Congress a list of the members so appointed. (e) Duties The Advisory Committee shall provide advice and recommendations to the Administrator— (1) concerning policy and program development and other matters of significance concerning activities under the Small Business Act ( 15 U.S.C. 631 et seq. ) and the Small Business Investment Act of 1958 ( 15 U.S.C. 661 et seq. ), including how the Administrator may increase the number of applicants to become small business investment companies, with a focus on management teams or companies investing in or located in— (A) low-income communities; (B) underserved communities; (C) rural areas; or (D) underfinanced States; (2) concerning incentives for small business investment companies to— (A) invest and locate in underlicensed States and underfinanced States; and (B) invest in small business concerns, including those owned and controlled by socially or economically disadvantaged individuals, small business concerns owned and controlled by veterans, and small business concerns owned and controlled by women; and (3) concerning metrics of success, and benchmarks for success, with respect to the goals described in this section. (f) Report Not later than 18 months after the date on which the Administrator establishes the Advisory Committee under subsection (b), the Advisory Committee shall submit to the Administrator, the Committee on Small Business and Entrepreneurship of the Senate, and the Committee on Small Business of the House of Representatives a report that includes— (1) the recommendations of the Advisory Committee; and (2) a discussion of the impact of State, local, and financial institution investment in small business investment companies on small business concerns in rural areas, low-income communities, underserved communities, and underfinanced States. (g) Termination The Advisory Committee shall terminate on the date on which the Advisory Committee submits the report required under subsection (f).

Amend the title so as to read: A bill to require the Administrator of the Small Business Administration to establish an SBIC Advisory Committee, and for other purposes. .

February 17, 2022 Reported with an amendment and an amendment to the title

tv_txt: 117th CONGRESS 2d Session S. 2521 IN THE SENATE OF THE UNITED STATES AN ACT To require the Administrator of the Small Business Administration to establish an SBIC Advisory Committee, and for other purposes.

1. Short title This Act may be cited as the SBIC Advisory Committee Act of 2022 . 2. SBIC Advisory Committee (a) Definitions In this section— (1) the terms Administration and Administrator mean the Small Business Administration and the Administrator thereof, respectively; (2) the term covered Members means the Chair and Ranking Member of— (A) the Committee on Small Business and Entrepreneurship of the Senate; and (B) the Committee on Small Business of the House of Representatives; (3) the terms licensee , small business investment company , and underlicensed State have the meanings given those terms in section 301 of the Small Business Investment Act of 1958 ( 15 U.S.C. 662 ); (4) the term low-income community has the meaning given the term in section 45D(e) of the Internal Revenue Code of 1986; (5) the term rural area has the meaning given the term by the Bureau of the Census; (6) the terms small business concern , small business concern owned and controlled by veterans , and small business concern owned and controlled by women have the meanings given those terms in section 3 of the Small Business Act ( 15 U.S.C. 632 ); (7) the term socially or economically disadvantaged individual means a socially disadvantaged individual or economically disadvantaged individual, as described in paragraphs (5) and (6)(A), respectively, of section 8(a) of the Small Business Act ( 15 U.S.C. 637(a) ); (8) the term underfinanced State means a State that has below median financing, as determined by the Administrator; and (9) the term underserved community means— (A) a HUBZone, as defined in section 31(b) of the Small Business Act ( 15 U.S.C. 657a(b) ); (B) a community that has been designated as an empowerment zone or an enterprise community under section 1391 of the Internal Revenue Code of 1986; (C) a community that has been designated as a promise zone by the Secretary of Housing and Urban Development; and (D) a community that has been designated as a qualified opportunity zone under section 1400Z–1 of the Internal Revenue Code of 1986. (b) Establishment The Administrator shall establish an SBIC Advisory Committee (referred to in this section as the Advisory Committee ) to convene outside experts to advise on the small business investment program under title III of the Small Business Investment Act of 1958 ( 15 U.S.C. 681 et seq. ). (c) Composition (1) Membership The Advisory Committee shall be composed of 16 members appointed by the Administrator as follows: (A) The Associate Administrator of the Office of Investment and Innovation of the Small Business Administration, or another designee of the Administrator as determined by the Administrator. (B) 7 members with competence, interest, or knowledge of the small business investment program under title III of the Small Business Investment Act of 1958 ( 15 U.S.C. 681 et seq. ), of whom— (i) not fewer than 3 shall have a demonstrated record of expertise in investing in— (I) low-income communities; (II) communities that have been designated as qualified opportunity zones under section 1400Z–1 of the Internal Revenue Code of 1986; (III) businesses primarily engaged in research and development; (IV) manufacturers; (V) businesses primarily owned or controlled by individuals in underserved communities before receiving capital from the licensee; (VI) rural areas; or (VII) underfinanced States; and (ii) not fewer than 1 member shall be a representative from a trade association for the small business investment program under title III of the Small Business Investment Act of 1958 ( 15 U.S.C. 681 et seq. ). (C) 8 members appointed by the Administrator as follows: (i) 2 members shall be selected from among the individuals in the list submitted by the Chair of the Committee on Small Business and Entrepreneurship of the Senate under paragraph (2). (ii) 2 members shall be selected from among the individuals in the list submitted by the Ranking Member of the Committee on Small Business and Entrepreneurship of the Senate under paragraph (2). (iii) 2 members shall be selected from among the individuals in the list submitted by the Chair of the Committee on Small Business of the House of Representatives under paragraph (2). (iv) 2 members shall be selected from among the individuals in the list submitted by the Ranking Member of the Committee on Small Business of the House of Representatives under paragraph (2). (2) Recommendations Not later than 30 days after the date of enactment of this Act, each of the covered Members shall provide to the Administrator a list of 3 candidates for membership on the Advisory Committee, who shall be individuals who hold a high-ranking position or senior leadership role, and have no conflict of interest in the small business investment program under title III of the Small Business Investment Act of 1958 ( 15 U.S.C. 681 et seq. ), in— (A) a relevant industry trade association; (B) the investment industry with expertise in pensions, endowments, and other non-banking institutions; (C) academia with expertise in the investment industry; or (D) a nonprofit institution, including one that serves any of the entities described in subclauses (I) through (VII) of paragraph (1)(B)(i). (3) Private sector members Not fewer than 2 and not more than 4 of the members of the Advisory Committee shall be investors in the private sector who— (A) invest in small business concerns; and (B) as of the date of appointment, do not participate in the small business investment program under title III of the Small Business Investment Act of 1958 ( 15 U.S.C. 681 et seq. ). (4) Chairperson The Chairperson of the Advisory Committee shall be the member of the Advisory Committee appointed under paragraph (1)(A). (5) Period of appointment Members of the Advisory Committee shall be appointed for the life of the Advisory Committee. (6) Vacancies Any vacancy in the Advisory Committee shall be filled in the same manner as the original appointment. (d) Deadline for appointment Not later than 60 days after the date on which the covered Members provide the lists to the Administrator under subsection (c)(2), the Administrator shall— (1) appoint the members of the Advisory Committee; and (2) submit to Congress a list of the members so appointed. (e) Duties The Advisory Committee shall provide advice and recommendations to the Administrator— (1) concerning policy and program development and other matters of significance concerning activities under the Small Business Act ( 15 U.S.C. 631 et seq. ) and the Small Business Investment Act of 1958 ( 15 U.S.C. 661 et seq. ), including diversifying management teams or companies; (2) concerning incentives for small business investment companies to— (A) invest and locate in underlicensed States and underfinanced States; and (B) invest in small business concerns, including those owned and controlled by socially or economically disadvantaged individuals, small business concerns owned and controlled by veterans, and small business concerns owned and controlled by women; (3) concerning metrics of success, and benchmarks for success, with respect to the goals described in this section; and (4) concerning the impact of the small business investment program under title III of the Small Business Investment Act of 1958 ( 15 U.S.C. 681 et seq. ) on the private investment market, including whether investments under the program compete with the private sector. (f) Report Not later than 18 months after the date on which the Administrator establishes the Advisory Committee under subsection (b), the Advisory Committee shall submit to the Administrator, the Committee on Small Business and Entrepreneurship of the Senate, and the Committee on Small Business of the House of Representatives a report that includes the recommendations of the Advisory Committee described in subsection (e). (g) Termination The Advisory Committee shall terminate on the date on which the Advisory Committee submits the report required under subsection (f).

Passed the Senate September 28, 2022. Secretary