,i  #aac? ,,congress  #a/ ,session  ,h4 
,r4 #cj  ,,9 ,,! ,,h\se ,,(             
,,repres5tatives  ,janu>y #c1 #bjac ,ms4
 ,velzquez introduc$ ! foll[+ bill2 :i* 
0 ref]r$ to ! ,committee on ,small      
,bus9ess1 & 9 addition to ! ,committee  
on ,ways & ,means1 = a p]iod to be      
subsequ5tly det]m9$ by ! ,speak]1 9 ea* 
case = consid]ation ( su* provisions z  
fall )9 ! jurisdiction ( ! committee    
conc]n$  ,a ,,bill  ,to am5d ! ,small   
,bus9ess ,inve/m5t ,act ( #aieh1 to     
provide = a small bus9ess e>ly-/age     
inve/m5t program1 & = o!r purposes4  #a4
 ,%ort title ,?is ,act may be cit$ z !  
,small ,bus9ess ,inve/m5t ,enhancem5t & 
,tax ,relief ,act4  ,i ,small bus9ess   
e>ly-/age inve/m5t program  #aja4 ,small
 bus9ess e>ly-/age inve/m5t program     
,title ,,iii ( ! ,small ,bus9ess        
,inve/m5t ,act ( #aieh 7#ae ,u4,s4,c4   
#fha et seq47 is am5d$ by add+ at ! end 
! foll[+3  ,d ,small bus9ess e>ly-/age  
inve/m5t program  #cii;,a4 ,e/abli%m5t (
 program ,! ,adm9i/rator %all e/abli% & 

c>ry out an e>ly-/age inve/m5t program  
7h]e9aft] ref]r$ to 9 ?is "p z !        
program7 to provide equity inve/m5t     
f9anc+ to support e>ly-/age small       
bus9esses 9 accordance ) ?is "p4        
#cii;,b4 ,adm9i/ration ( program ,!     
program %all be adm9i/]$ by !           
,adm9i/rator act+ ?r\gh ! ,associate    
,adm9i/rator describ$ "u section #bja4  
#cii;,c4 ,applications  7a7 ,9 g5]al    
,any exi/+ or newly =m$ incorporat$     
body1 limit$ liability company1 or      
limit$ p>tn]%ip organiz$ & *>t]$ or     
o!rwise exi/+ "u ,f$]al or ,/ate law = !
 purpose ( p]=m+ ! functions & conduct+ 
! activities contemplat$ "u ! program & 
any manag] ( any small bus9ess inve/m5t 
company may submit to ! ,adm9i/rator an 
application to p>ticipate 9 ! program4  
7b7 ,requirem5ts = application ,an      
application to p>ticipate 9 ! program   
%all include ! foll[+3  7#a7 ,a bus9ess 
plan describ+ h[ ! applicant int5ds to  
make successful v5ture capital inve/m5ts
 9 e>ly-/age small bus9esses & direct   

capital to small bus9ess conc]ns 9      
t>get$ indu/ries or o!r bus9ess sectors4
  7#b7 ,in=mation reg>d+ ! relevant     
v5ture capital inve/m5t qualifications &
 backgr\nds ( ! individuals responsible 
= ! managem5t ( ! applicant4  7#c7 ,a   
description ( ! ext5t to :i* ! applicant
 meets ! selection crit]ia "u section   
#cii;,d4  7c7 ,applications f manag]s ( 
small bus9ess inve/m5t companies ,!     
,adm9i/rator %all e/abli% an abbreviat$ 
application process = applicants t are  
manag]s ( small bus9ess inve/m5t        
companies t are lic5s$ "u section #cja &
 t are apply+ to p>ticipate 9 ! program4
 ,su* abbreviat$ process %all           
incorporate a presumption t su* manag]s 
satisfactorily meet ! selection crit]ia 
"u p>agraphs 7#c7 & 7#e7 ( section      
#cii;,d7b74  #cii;,d4 ,selection (      
p>ticipat+ inve/m5t companies  7a7 ,9   
g5]al ,n lat] ?an #ij days aft] ! date  
on :i* ! ,adm9i/rator receives an       
application f an applicant "u section   
#cii;,c1 ! ,adm9i/rator %all make a     

det]m9ation to conditionally approve or 
disapprove su* applicant to p>ticipate 9
 ! program & %all transmit su*          
det]m9ation to ! applicant 9 writ+4 ,a  
det]m9ation to conditionally approve an 
applicant %all id5tify all conditions   
necess>y = a f9al approval & %all       
provide a p]iod ( n less ?an "o ye> =   
satisfy+ su* conditions4  7b7 ,selection
 crit]ia ,9 mak+ a det]m9ation "u       
subsection 7a71 ! ,adm9i/rator %all     
consid] ea* ( ! foll[+3  7#a7 ,!        
likelihood t ! applicant w meet ! goals 
specifi$ 9 ! bus9ess plan ( ! applicant4
  7#b7 ,! likelihood t ! inve/m5ts ( !  
applicant w create or pres]ve jobs1 bo? 
directly & indirectly4  7#c7 ,! "* &    
fitness ( ! managem5t ( ! applicant4    
7#d7 ,! exp]i5ce & backgr\nd ( !        
managem5t ( ! applicant4  7#e7 ,! ext5t 
to :i* ! applicant w conc5trate inve/m5t
 activities on e>ly-/age small          
bus9esses4  7#f7 ,! likelihood t !      
applicant w a*ieve pr(itability4  7#g7  
,! exp]i5ce ( ! managem5t ( ! applicant 

) respect to e/abli%+ a pr(itable       
inve/m5t track record4  7#h7 ,! ext5t to
 :i* ! applicant w conc5trate inve/m5t  
activities on small bus9ess conc]ns 9   
t>get$ indu/ries4  7c7 ,f9al approval ,=
 ea* applicant provid$ a conditional    
approval "u subsection 7a71 !           
,adm9i/rator %all provide f9al approval 
to p>ticipate 9 ! program n lat] ?an #ij
 days aft] ! date ! applicant satisfies 
! conditions specifi$ by ! ,adm9i/rator 
"u su* subsection or1 9 ! case (        
applicants ^: p>tn]%ip or managem5t     
agreem5ts con=m to models approv$ by !  
,adm9i/rator1 ! ,adm9i/rator %all       
provide f9al approval to p>ticipate 9 ! 
program n lat] ?an #cj days aft] ! date 
! applicant satisfies ! conditions      
specifi$ "u su* subsection4 ,if an      
applicant provid$ conditional approval  
"u subsection 7a7 fails to satisfy !    
conditions specifi$ by ! ,adm9i/rator 9 
! "t p]iod designat$ "u su* subsection1 
! ,adm9i/rator %all revoke ! conditional
 approval4  #cii;,e4 ,equity f9anc+s    

7a7 ,9 g5]al ,! ,adm9i/rator may make "o
 or m equity f9anc+s to a p>ticipat+    
inve/m5t company4  7b7 ,equity f9anc+   
am\nts  7#a7 ,non-,f$]al capital ,an    
equity f9anc+ made to a p>ticipat+      
inve/m5t company "u ! program may n be 9
 an am\nt t exce$s ! am\nt ( ! capital (
 su* company t is n f a ,f$]al s\rce & t
 is available = inve/m5t on or be=e !   
date on :i* an equity f9anc+ is drawn   
^u4 ,su* capital may include legally    
b9d+ commitm5ts ) respect to capital =  
inve/m5t4  7#b7 ,limitation on aggregate
 am\nt ,! aggregate am\nt ( all equity  
f9anc+s made to a p>ticipat+ inve/m5t   
company "u ! program may n exce$        
#ajj1jjj1jjj4  7c7 ,equity f9anc+       
process ,9 mak+ an equity f9anc+ "u !   
program1 ! ,adm9i/rator %all commit an  
equity f9anc+ am\nt to a p>ticipat+     
inve/m5t company & ! am\nt ( ea* su*    
commitm5t %all rema9 available to be    
drawn ^u by su* company--  7#a7 =       
new-nam$ inve/m5ts dur+ ! #e-ye> p]iod  
beg9n+ on ! date on :i* ea* su*         

commitm5t is fir/ drawn ^u2 &  7#b7 =   
foll[-on inve/m5ts & managem5t fees dur+
 ! #aj-ye> p]iod beg9n+ on ! date on :i*
 ea* su* commitm5t is fir/ drawn ^u1 ) n
 m ?an #b additional #a-ye> p]iods      
available at ! discretion ( !           
,adm9i/rator4  7d7 ,commitm5t ( funds ,!
 ,adm9i/rator %all make commitm5ts =    
equity f9anc+s n lat] ?an #b ye>s aft] !
 date funds are appropriat$ = ! program4
  #cii;,f4 ,inve/m5ts 9 e>ly-/age small 
bus9esses  7a7 ,9 g5]al ,z a condition (
 receiv+ an equity f9anc+ "u ! program1 
a p>ticipat+ inve/m5t company %all make 
all ( ! inve/m5ts ( su* company 9 small 
bus9ess conc]ns1 ( :i* at lea/ #ej p]c5t
 %all be e>ly-/age small bus9esses4  7b7
 ,evaluation ( compliance ,) respect to 
an equity f9anc+ am\nt committ$ to a    
p>ticipat+ inve/m5t company "u section  
#cii;,e1 ! ,adm9i/rator %all evaluate ! 
compliance ( su* company ) ! requirem5ts
 "u ?is section if su* company has drawn
 ^u #ej p]c5t ( su* commitm5t4  #cii;,g4
 ,pro rata inve/m5t %>es ,ea* inve/m5t  

made by a p>ticipat+ inve/m5t company "u
 ! program %all be treat$ z compris$ (  
capital f equity f9anc+s "u ! program   
accord+ to ! ratio t capital f equity   
f9anc+s "u ! program be>s to all capital
 available to su* company = inve/m5t4   
#cii;,h4 ,equity f9anc+ int]e/  7a7     
,equity f9anc+ ,int]e/  7#a7 ,9 g5]al ,z
 a condition ( receiv+ an equity f9anc+ 
"u ! program1 a p>ticipat+ inve/m5t     
company %all convey an equity f9anc+    
int]e/ to ! ,adm9i/rator 9 accordance ) 
p>agraph 7#b74  7#b7 ,effect (          
conveyance ,! equity f9anc+ int]e/      
convey$ "u p>agraph 7#a7 %all h all !   
rights & attributes ( o!r inve/ors      
attributable to _! int]e/s 9 !          
p>ticipat+ inve/m5t company1 b %all n   
d5ote control or vot+ rights to !       
,adm9i/rator4 ,! equity f9anc+ int]e/   
%all entitle ! ,adm9i/rator to a pro    
rata portion ( any di/ributions made by 
! p>ticipat+ inve/m5t company equal to !
 p]c5tage ( capital 9 ! p>ticipat+      
inve/m5t company t ! equity f9anc+      

comprises4 ,! ,adm9i/rator %all receive 
di/ributions f ! p>ticipat+ inve/m5t    
company at ! same times & 9 ! same      
am\nts z any o!r inve/or 9 ! company ) a
 simil> int]e/4 ,! inve/m5t company %all
 make allocations ( income1 ga91 loss1  
d$uction1 & cr$it to ! ,adm9i/rator )   
respect to ! equity f9anc+ int]e/ z if !
 ,adm9i/rator 7 an inve/or4  7b7 ,manag]
 pr(its ,z a condition ( receiv+ an     
equity f9anc+ "u ! program1 ! manag]    
pr(its int]e/ payable to ! manag]s ( a  
p>ticipat+ inve/m5t company "u ! program
 %all n exce$ #bj p]c5t ( pr(its1       
exclusive ( any pr(its t may accrue z a 
result ( ! capital contributions ( any  
su* manag]s ) respect to su* company4   
,any excess ( ?is am\nt1 less taxes     
payable !reon1 %all be return$ by !     
manag]s & paid to ! inve/ors & !        
,adm9i/rator 9 proportion to ! capital  
contributions & equity f9anc+s paid 94  
,no manag] pr(its int]e/ 7o!r ?an a tax 
di/ribution7 %all be paid prior to !    
repaym5t to ! inve/ors & ! ,adm9i/rator 

( all contribut$ capital & equity       
f9anc+s made4  7c7 ,di/ribution         
requirem5ts ,z a condition ( receiv+ an 
equity f9anc+ "u ! program1 a p>ticipat+
 inve/m5t company %all make all         
di/ributions to all inve/ors 9 ca% &    
%all make di/ributions )9 a reasonable  
"t aft] exit+ inve/m5ts1 includ+ foll[+ 
a public (f]+ or m>ket sale ( und]ly+   
inve/m5ts4  #cii;,i4 ,fund ,!re is h]eby
 creat$ )9 ! ,treasury a sep>ate fund = 
equity f9anc+s :i* %all be available to 
! ,adm9i/rator subject to annual        
appropriations z a revolv+ fund to be   
us$ = ! purposes ( ! program4 ,all      
am\nts receiv$ by ! ,adm9i/rator1       
includ+ any moneys1 prop]ty1 or assets  
d]iv$ by ! ,adm9i/rator f op]ations 9   
connection ) ! program1 %all be deposit$
 9 ! fund4 ,all exp5ses & paym5ts1      
exclud+ adm9i/rative exp5ses1 pursuant  
to ! op]ations ( ! ,adm9i/rator "u !    
program %all be paid f ! fund4  #cii;,j4
 ,application ( o!r sections ,to ! ext5t
 n inconsi/5t ) requirem5ts "u ?is "p1 !

 ,adm9i/rator may apply sections #cji1  
#caa1 #cab1 #cac1 & #cad to activities  
"u ?is "p & an (fic]1 director1         
employee1 ag5t1 or o!r p>ticipant 9 a   
p>ticipat+ inve/m5t company %all be     
subject to ! requirem5ts "u su*         
sections4  #cii,k4 ,annual report+ ,!   
,adm9i/rator %all report on ! p]=mance (
 ! program 9 ! annual p]=mance report ( 
! ,adm9i/ration4  #cii,l4 ,def9itions ,9
 ?is "p1 ! foll[+ def9itions apply3     
7#a7 ,e>ly-/age small bus9ess ,! t]m    
e>ly-/age small bus9ess means a small   
bus9ess conc]n t--  7,a7 is domicil$ 9 a
 ,/ate2 &  7,b7 has n g5]at$ gross      
annual sales rev5ues exce$+ #ae1jjj1jjj 
9 any ( ! previ\s #c ye>s4  7#b7        
,p>ticipat+ inve/m5t company ,! t]m     
p>ticipat+ inve/m5t company means an    
applicant approv$ "u section #cii;,d to 
p>ticipate 9 ! program4  7#c7 ,t>get$   
indu/ries ,! t]m t>get$ indu/ries means 
any ( ! foll[+ bus9ess sectors3  7,a7   
,agricultural te*nology4  7,b7 ,en]gy   
te*nology4  7,c7 ,environm5tal          

te*nology4  7,d7 ,life sci5ce4  7,e7    
,in=mation te*nology4  7,f7 ,digital    
m$ia4  7,g7 ,clean te*nology4  7,h7     
,def5se te*nology4  4  ,,ii ,small      
bus9ess inve/m5t  #bja4 ,tax cr$it =    
small bus9ess inve/m5t  7a7 ,9 g5]al    
,subp>t ,a ( "p ,,iv ( sub*apt] ,a (    
*apt] #a ( ! ,int]nal ,rev5ue ,code (   
#aihf 7relat+ to nonrefundable p]sonal  
cr$its7 is am5d$ by ins]t+ aft] section 
#be;,d ! foll[+ new section3  #be;,e4   
,small bus9ess inve/m5t  7a7 ,9 g5]al ,9
 ! case ( an individual1 !re %all be    
all[$ z a cr$it aga9/ ! tax impos$ by   
?is *apt] an am\nt equal to #bj p]c5t ( 
! am\nt paid or incurr$ = qualifi$ small
 bus9ess inve/m5ts dur+ ! taxable ye>4  
7b7 ,limitation ,) respect to any       
qualifi$ small bus9ess inve/m5t 9 any   
corporation or p>tn]%ip1 ! am\nt paid or
 incurr$ by any taxpay] :i* is tak5 into
 acc\nt "u subsection 7a7 %all n exce$  
#bej1jjj 7#ejj1jjj 9 ! case ( a jo9t    
return71 r$uc$ by ! am\nt tak5 into     
acc\nt "u su* subsection ) respect to   

inve/m5ts by ! taxpay] 9 su* corporation
 or p>tn]%ip = all prior taxable ye>s4  
7c7 ,qualifi$ small bus9ess inve/m5t ,= 
purposes ( ?is section--  7#a7 ,9 g5]al 
,! t]m qualifi$ small bus9ess inve/m5t  
means any small bus9ess /ock & any small
 bus9ess p>tn]%ip int]e/4  7#b7 ,small  
bus9ess /ock ,! t]m small bus9ess /ock  
means any /ock 9 a dome/ic corporation  
acquir$ by ! taxpay] at its orig9al     
issue 7directly or ?r\gh an und]writ]7  
solely 9 ex*ange = ca%1 if--  7,a7 su*  
corporation is an eligible small bus9ess
 7z def9$ 9 section                     
#da7;b77#c77;,d77ii772  7,b7 su*        
corporation is engag$ prim>ily 9 ! trade
 or bus9ess ( manufactur+1 process+1    
assembl+1 or rese>*+ & develop+ products
 or 9 ! trade or bus9ess ( agriculture1 
te*nology1 or life sci5ce2  7,c7 su*    
corporation has be5 9 exi/5ce = less ?an
 #e ye>s z ( su* acquisition2  7,d7 su* 
corporation has few] ?an #ge employees z
 ( su* acquisition2  7,e7 m ?an #ej     
p]c5t ( ! corporation's employees p]=m  

sub/antially all ( _! s]vices 9 ! ,unit$
 ,/ates z ( su* acquisition2 &  7,f7 su*
 /ock is designat$ by ! corporation =   
purposes ( ?is p>agraph4  ,= purposes ( 
subp>agraph 7,e71 /ock %all n be treat$ 
z designat$ if su* designation w\ld     
result 9 ! aggregate am\nt :i* may be   
tak5 into acc\nt "u ?is section )       
respect to /ock issu$ by su* corporation
 to exce$ #gej1jjj1 tak+ into acc\nt all
 taxpay]s = all taxable ye>s4  7#c7     
,small bus9ess p>tn]%ip int]e/ ,! t]m   
small bus9ess p>tn]%ip int]e/ means any 
capital or pr(its int]e/ 9 a dome/ic    
p>tn]%ip acquir$ by ! taxpay] f !       
p>tn]%ip solely 9 ex*ange = ca%1 if--   
7,a7 su* p>tn]%ip is an eligible small  
bus9ess 7z def9$ 9 section              
#da7;b77#c77;,d77ii772  7,b7 su*        
p>tn]%ip is engag$ prim>ily 9 ! trade or
 bus9ess ( manufactur+1 process+1       
assembl+1 or rese>*+ & develop+ products
 or 9 ! trade or bus9ess ( agriculture1 
te*nology1 or life sci5ce2  7,c7 su*    
p>tn]%ip has be5 9 exi/5ce = less ?an #e

 ye>s z ( su* acquisition2  7,d7 su*    
p>tn]%ip has few] ?an #ge employees z ( 
su* acquisition2  7,e7 m ?an #ej p]c5t (
 ! p>tn]%ip's employees p]=m            
sub/antially all ( _! s]vices 9 ! ,unit$
 ,/ates z ( su* acquisition2 &  7,f7 su*
 capital or pr(its int]e/ is designat$  
by p>tn]%ip = purposes ( ?is p>agraph4  
,= purposes ( subp>agraph 7,e71 a       
capital or pr(its int]e/ %all n be      
treat$ z designat$ if su* designation   
w\ld result 9 ! aggregate am\nt :i* may 
be tak5 into acc\nt "u ?is section )    
respect to int]e/s 9 su* p>tn]%ip to    
exce$ #gej1jjj1 tak+ into acc\nt all    
taxpay]s = all taxable ye>s4  7d7       
,c>ry=w>d ( unus$ cr$it ,if ! cr$it     
all[able "u subsection 7a7 exce$s !     
limitation impos$ by section #bf7;a7 =  
su* taxable ye> r$uc$ by ! sum ( !      
cr$its all[able "u ?is subp>t 7o!r ?an  
?is section71 su* excess %all be c>ri$  
to ! succe$+ taxable ye> & add$ to !    
cr$it all[able "u ?is section4 ,su*     
excess %all n be tak5 into acc\nt "u ?is

 subsection = su* succe$+ taxable ye> or
 any taxable ye> succe$+ su* ye>4  4    
7b7 ,cl]ical am5dm5t ,! table ( sections
 ( su* subp>t is am5d$ by ins]t+ aft] ! 
item relat+ to section #be;,d ! foll[+  
new item3  ,sec4 #be;,e4 ,small bus9ess 
inve/m5t4  4  7c7 ,report to ,congress  
,! ,secret>y ( ! ,treasury %all conduct 
a /udy & report to ,congress on !       
effectiv5ess ( ! cr$it all[$ "u section 
#be;,e ( ! ,int]nal ,rev5ue ,code (     
#aihf 7z add$ by ?is section71 & simil> 
,/ate tax cr$its1 9 provid+ inc5tives = 
inve/m5t 9 qualifi$ small bus9esses4    
,!re are au?oriz$ to be appropriat$     
#ejj1jjj to c>ry out ! purposes ( ?is   
subsection4  7d7 ,effective date ,!     
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ! date ( !  
enactm5t ( ?is ,act4